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

SAP Term: financial collateral

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Hedge instrument in the form of securities including stocks, cash deposits, and gold.

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• Key Concepts: 
  Financial collateral is a type of security that is used to secure a loan or other financial obligation. It is a form of security that can be used to protect the lender in the event that the borrower defaults on the loan. Financial collateral can include cash, stocks, bonds, and other financial instruments. 
  
  How to use it: 
  In SAP Credit Risk Management, financial collateral can be used to secure a loan or other financial obligation. The collateral can be set up in the system and monitored to ensure that it is sufficient to cover the loan amount. The system also allows for the tracking of any changes in the value of the collateral over time. 
  
  Tips & Tricks: 
  When setting up financial collateral in SAP Credit Risk Management, it is important to ensure that the collateral is sufficient to cover the loan amount. It is also important to monitor any changes in the value of the collateral over time, as this could affect the security of the loan. 
  
  Related Information: 
  For more information on SAP Credit Risk Management and financial collateral, please refer to SAP Help Portal or contact your local SAP representative.