What is calculation category for credit risk in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: calculation category for credit risk

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Defines the attributes of a credit exposure run. The credit risk calculation category is assigned to the calculation method. Example: Counterparty Risk, Country Risk, Default Mode Credit Portfolio Model, Credit Portfolio Data Processing, Basel II

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• Key Concepts: 
  Calculation category for credit risk is a component of the SAP Financial Services – Bank Analyzer – Portfolio Management – Credit Risk module. It is used to define the calculation categories for credit risk, which are used to determine the credit risk of a customer or counterparty. The calculation categories are based on the customer’s creditworthiness and can be used to determine the amount of credit that can be extended to the customer. 
  
  How to use it: 
  The calculation category for credit risk is used to define the calculation categories for credit risk. These categories are based on the customer’s creditworthiness and can be used to determine the amount of credit that can be extended to the customer. The calculation categories are also used to determine the risk associated with a particular customer or counterparty. 
  
  Tips & Tricks: 
  When defining calculation categories for credit risk, it is important to consider the customer’s creditworthiness and other factors such as their financial history and current financial situation. It is also important to consider any external factors that may affect the customer’s ability to repay their debt, such as changes in economic conditions or changes in their industry. 
  
  Related Information: 
  The calculation category for credit risk is part of a larger system of tools and processes used by banks and other financial institutions to manage their portfolios and assess their customers’ creditworthiness. Other components of this system include credit scoring, collateral management, and portfolio management.