What is credit risk scenario in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: credit risk scenario

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: A credit risk scenario can be used to simulate the effects of stressed risk parameters on a bank's portfolio, for example counterparty default or a lowering of the rating of the government bonds of certain countries.

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• Key Concepts: 
  Credit risk scenario is a component of the SAP Financial Services Business Application (FS-BA) that enables users to assess and manage credit risk. It provides a comprehensive set of tools to analyze and manage credit risk, including credit scoring, portfolio analysis, and stress testing. The component also provides a range of reporting capabilities to help users make informed decisions about their credit risk exposure. 
  
  How to use it: 
  The FS-BA-PM-CR Credit Risk Scenario component can be used to assess and manage credit risk in a variety of ways. It can be used to analyze individual customer portfolios, as well as entire portfolios of customers. It can also be used to assess the impact of changes in market conditions on credit risk exposure. Additionally, it can be used to generate reports that provide insight into the performance of the portfolio and the overall credit risk exposure. 
  
  Tips & Tricks: 
  When using the FS-BA-PM-CR Credit Risk Scenario component, it is important to ensure that all data is up-to-date and accurate. Additionally, it is important to ensure that all relevant parameters are taken into account when assessing credit risk. Finally, it is important to regularly review the reports generated by the component in order to identify any potential issues or areas for improvement. 
  
  Related Information: 
  For more information about the FS-BA-PM-CR Credit Risk Scenario component, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are a number of online resources available that provide additional information about credit risk management and the use of this component.