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

SAP Term: on-balance-sheet securitization exposure

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Investment in a tranche of a securitization. On-balance-sheet securitization exposures can be initiated by the investor, originator or sponsor. On-balance-sheet securitization exposures are balance sheet assets.

Smart SAP Assistant

• Key Concepts: 
  On-balance-sheet securitization exposure is a term used in the SAP FS-BA-PM-CR Credit Risk Management component. It refers to the risk of a financial institution’s assets being securitized and sold to investors. This type of securitization is done on the balance sheet of the institution, meaning that the institution retains ownership of the assets and is responsible for any losses that may occur. 
  
  How to use it: 
  The SAP FS-BA-PM-CR Credit Risk Management component helps financial institutions manage their on-balance-sheet securitization exposure. It provides tools to assess the risk associated with securitizing assets, as well as tools to monitor and manage the performance of securitized assets. The component also provides reporting capabilities to help institutions track their exposure and make informed decisions about their securitization activities. 
  
  Tips & Tricks: 
  When managing on-balance-sheet securitization exposure, it is important to consider both the potential risks and rewards associated with securitizing assets. It is also important to monitor the performance of securitized assets over time, as this can help identify potential problems before they become too large. 
  
  Related Information: 
  The SAP FS-BA-PM-CR Credit Risk Management component is part of the SAP Financial Services suite, which provides a comprehensive set of tools for managing financial risk. Other components in this suite include SAP FS-BA-PM-IR Interest Rate Risk Management, SAP FS-BA-PM-AL Asset Liability Management, and SAP FS-BA-PM-CR Credit Risk Management.