What is on-balance-sheet pooling in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: on-balance-sheet pooling

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Netting of payables and receivables owed to or by the same natural or legal person.

Smart SAP Assistant

• Key Concepts: 
  On-balance-sheet pooling is a feature of the Credit Risk Management component of SAP's Financial Services Business Application (FS-BA-PM-CR). It allows companies to manage their credit risk by pooling their exposures to customers and other entities into a single portfolio. This helps to reduce the overall risk of the portfolio, as well as providing better visibility into the credit risk of each customer. 
  
  How to use it: 
  On-balance-sheet pooling can be used to manage credit risk in a number of ways. Companies can use it to identify and monitor high-risk customers, as well as to assess the overall risk of their portfolio. It can also be used to set up credit limits for customers, and to monitor their performance over time. 
  
  Tips & Tricks: 
  When using on-balance-sheet pooling, it is important to ensure that all exposures are accurately captured in the portfolio. This includes both current and future exposures, as well as any potential changes in the customer's creditworthiness. Additionally, it is important to regularly review and update the portfolio in order to ensure that it remains up-to-date and accurate. 
  
  Related Information: 
  For more information on on-balance-sheet pooling, please refer to SAP's documentation on Credit Risk Management (https://help.sap.com/viewer/product/FS_BA_PM_CR/latest/en-US). Additionally, there are a number of third-party resources available that provide further information on this topic.