What is PD band in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: PD band

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Band for probability of default.

Smart SAP Assistant

• Key Concepts: 
  PD band stands for Probability of Default band. It is a risk rating assigned to a customer or a portfolio of customers in the Credit Risk Management (CRM) component of the Financial Services (FS) Business Application (BA) Platform (PM). The PD band is used to assess the creditworthiness of a customer or portfolio and to determine the credit limit that should be assigned. 
  
  How to use it: 
  The PD band is used to assess the creditworthiness of a customer or portfolio and to determine the credit limit that should be assigned. The PD band is calculated based on the customer's financial information, such as their credit score, payment history, and other factors. The PD band is then used to assign a risk rating to the customer or portfolio, which can be used to determine the appropriate credit limit. 
  
  Tips & Tricks: 
  When assigning a PD band, it is important to consider all relevant factors, such as the customer's financial information, payment history, and other factors. Additionally, it is important to regularly review and update the PD band as needed in order to ensure that the appropriate credit limit is assigned. 
  
  Related Information: 
  For more information on Credit Risk Management in SAP Financial Services Business Application Platform, please refer to the SAP Help Portal: https://help.sap.com/viewer/product/FS-BA-PM-CR/latest/en-US