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Component: FS-BA-PM-CR
Component Name: Credit Risk
Description: Mean of the time period between the time of repayment and the evaluation date that is weighted by the respective repayment amount. Maximum time period available to the borrower for fulfilling the obligations specified in the contract.
Key Concepts: Maturity in the context of FS-BA-PM-CR Credit Risk Management is the length of time until a loan or other financial instrument is due to be paid back. It is an important factor in determining the risk associated with a loan, as longer maturities generally carry more risk. How to use it: Maturity is used to assess the risk associated with a loan or other financial instrument. It is important to consider the maturity when evaluating the risk of a loan, as longer maturities generally carry more risk. Tips & Tricks: When assessing the risk associated with a loan or other financial instrument, it is important to consider not only the maturity but also other factors such as the borrower’s creditworthiness and the amount of collateral provided. Related Information: For more information on assessing credit risk, please refer to SAP’s Credit Risk Management documentation.