What is implicit support in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: implicit support

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Exists when an institution supports a securitization that exceeds the obligations agreed in the original contract.

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• Key Concepts: 
  Implicit support is a feature of the Credit Risk Management (CRM) component of the Financial Services Business Application Platform (FS-BA-PM). It allows users to automatically adjust credit limits for customers based on their creditworthiness. This helps to reduce the risk of default and ensure that customers are not overextended. 
  
  How to use it: 
  To use implicit support, users must first set up a credit limit for each customer. This can be done manually or by using a predefined algorithm. Once the credit limit is set, the system will automatically adjust it based on the customer's creditworthiness. The system will also monitor the customer's creditworthiness over time and adjust the limit accordingly. 
  
  Tips & Tricks: 
  When setting up a customer's credit limit, it is important to consider their current financial situation as well as their past payment history. This will help ensure that the limit is set at an appropriate level and that it is adjusted as needed. Additionally, it is important to regularly review the customer's creditworthiness and adjust the limit accordingly. 
  
  Related Information: 
  Implicit support is just one of many features available in the Credit Risk Management component of FS-BA-PM. Other features include automated risk assessment, automated decision making, and automated reporting. Additionally, there are various tools available to help users manage their customers' credit limits more effectively.