What is country risk quadrant in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: country risk quadrant

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Specifies whether a transaction is a cross-border transaction and/or a cross-currency transaction. The system compares the following data: Country of the organizational unit and the country risk country Contract currency and the currencies assigned to the country risk country

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• Key Concepts: 
  Country Risk Quadrant is a tool used in the SAP Credit Risk Management (FS-BA-PM-CR) component to assess the creditworthiness of a customer. It is based on the country risk ratings assigned by credit rating agencies and provides an overview of the risk associated with a customer’s country of residence. The quadrant is divided into four categories: low, medium, high, and very high risk. 
  
  How to use it: 
  The Country Risk Quadrant can be used to assess the creditworthiness of a customer by assigning them to one of the four categories. The ratings are based on the country risk ratings assigned by credit rating agencies and can be used to determine whether or not a customer should be granted credit. 
  
  Tips & Tricks: 
  When using the Country Risk Quadrant, it is important to remember that the ratings are based on the country risk ratings assigned by credit rating agencies and may not reflect the actual risk associated with a customer’s country of residence. It is also important to consider other factors such as the customer’s financial history and payment history when making a decision about granting credit. 
  
  Related Information: 
  The Country Risk Quadrant is part of the SAP Credit Risk Management (FS-BA-PM-CR) component and can be used in conjunction with other tools such as credit scoring and financial analysis to assess the creditworthiness of a customer. It is also important to consider other factors such as industry trends and economic conditions when making a decision about granting credit.