What is CCF in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: CCF

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Credit conversion factor For transactions that are traditionally off-balance-sheet transactions, the credit conversion factor specifies for a key date which proportion of a commitment is utilized by the counterparty in the event of a default on a defined time horizon for example, in one year's time. The credit conversion factor is thus used in the calculation of the exposure at default EAD.

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• Key Concepts: 
  CCF stands for Credit Control Framework and is a component of the SAP Financial Services – Banking and Payments – Portfolio Management – Credit Risk Management module. It is a set of tools that allow companies to manage their credit risk by monitoring customer credit limits, setting up credit control areas, and managing customer credit exposure. 
  
  How to use it: 
  The CCF component allows companies to set up credit control areas, which are used to define the rules and parameters for managing customer credit exposure. Companies can also set up customer credit limits, which are used to limit the amount of credit that customers can take out. Additionally, the CCF component provides tools for monitoring customer credit exposure, such as the Credit Exposure Monitor and the Credit Risk Monitor. 
  
  Tips & Tricks: 
  When setting up customer credit limits, it is important to consider the customer’s financial situation and their ability to pay back the loan. Additionally, it is important to monitor customer credit exposure on a regular basis in order to ensure that customers are not taking on too much risk. 
  
  Related Information: 
  For more information about the CCF component of SAP Financial Services – Banking and Payments – Portfolio Management – Credit Risk Management module, please refer to the SAP Help Portal.