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

SAP Term: delivery risk

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: A special form of counterparty risk in the trading book for Basel II purposes. This risk is the potential loss that arises if the counterparty does not make the return payment or delivery, but the bank has already made its payment. Delivery risk is a type of settlement risk.

Smart SAP Assistant

• Key Concepts: 
  Delivery risk is a type of credit risk that occurs when a customer fails to pay for goods or services that have already been delivered. It is a risk that arises from the customer's inability or unwillingness to pay for goods or services that have already been delivered. This type of risk is typically managed by the Credit Risk Management (CRM) component of the Financial Services (FS) Business Application (BA) Platform (PM). 
  
  How to use it: 
  The CRM component of the FS-BA-PM platform provides tools and features to help manage delivery risk. These include credit scoring, credit limit setting, and monitoring of customer payment behavior. The CRM component also provides tools for managing customer accounts, such as setting up payment plans and tracking customer payments. 
  
  Tips & Tricks: 
  It is important to monitor customer payment behavior in order to identify potential delivery risks. This can be done by regularly reviewing customer accounts and tracking any changes in payment behavior. Additionally, it is important to set appropriate credit limits for customers in order to minimize the risk of delivery risk. 
  
  Related Information: 
  For more information on managing delivery risk, please refer to the SAP Help Portal article “Managing Delivery Risk with SAP Credit Risk Management”. Additionally, the SAP Community Network has a number of resources related to managing delivery risk, including blogs, discussions, and tutorials.