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

SAP Term: EAD category

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: This term is used in this form for reporting purposes only. It is to be used in a similar way as the CCF grade.

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• Key Concepts: 
  EAD category is a component of the Credit Risk Management module in SAP. It stands for Exposure at Default and is used to measure the amount of credit risk a company is exposed to. It is calculated by taking into account the amount of credit exposure, the probability of default, and the expected loss given default. 
  
  How to use it: 
  The EAD category component in SAP can be used to calculate the amount of credit risk a company is exposed to. This can be done by inputting the amount of credit exposure, the probability of default, and the expected loss given default into the system. The system will then calculate the EAD category and provide an indication of how much risk a company is exposed to. 
  
  Tips & Tricks: 
  When using the EAD category component in SAP, it is important to ensure that all inputs are accurate and up-to-date. This will ensure that the results are as accurate as possible and will help to minimize any potential risks. Additionally, it is important to regularly review and update the inputs in order to ensure that they remain accurate. 
  
  Related Information: 
  The EAD category component in SAP is part of a larger suite of tools used for Credit Risk Management. Other components include Credit Risk Analysis, Credit Risk Monitoring, and Credit Risk Mitigation. These tools can be used together to help companies manage their credit risk more effectively.