What is off-balance-sheet securitization exposure in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: off-balance-sheet securitization exposure

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Can be placed either by the originator or by the sponser for example, liquidity facilities.

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• Key Concepts: 
  Off-balance-sheet securitization exposure is a type of credit risk that arises when a company transfers its assets to a special purpose vehicle (SPV) and issues securities backed by those assets. The SPV is not part of the company’s balance sheet, so the company does not have to recognize the risk associated with the securitization. However, the company still has exposure to the credit risk of the underlying assets. 
  
  How to use it: 
  SAP FS-BA-PM-CR Credit Risk Management can be used to manage off-balance-sheet securitization exposure. The module provides tools for assessing and monitoring credit risk, as well as for setting up and managing securitization transactions. It also provides reporting capabilities to help companies understand their exposure to off-balance-sheet securitization risk. 
  
  Tips & Tricks: 
  When setting up a securitization transaction, it is important to consider the creditworthiness of the underlying assets and the structure of the transaction. Companies should also consider how they will monitor and manage their exposure to off-balance-sheet securitization risk over time. 
  
  Related Information: 
  For more information on SAP FS-BA-PM-CR Credit Risk Management, please visit https://help.sap.com/viewer/product/FS_BA_PM_CR/latest/en-US.