What is percentage value of a collateral agreement for political risk in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: percentage value of a collateral agreement for political risk

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Political collateral agreement amount as a percentage of the secured exposure.

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• Key Concepts: 
  A collateral agreement for political risk is a type of credit risk management tool used by SAP Financial Services Business Analytics (FS-BA-PM-CR) to protect against the potential losses associated with political events. The percentage value of the collateral agreement is the amount of money that must be held in reserve in order to cover any potential losses. 
  
  How to use it: 
  The percentage value of a collateral agreement for political risk is determined by the credit risk management team. This value is then used to calculate the amount of money that must be held in reserve in order to cover any potential losses. The percentage value can be adjusted as needed depending on the level of risk associated with a particular political event. 
  
  Tips & Tricks: 
  It is important to regularly review and adjust the percentage value of a collateral agreement for political risk in order to ensure that it is sufficient to cover any potential losses. Additionally, it is important to monitor political events and adjust the percentage value accordingly. 
  
  Related Information: 
  For more information on credit risk management tools, please refer to SAP’s Financial Services Business Analytics (FS-BA-PM-CR) documentation. Additionally, there are many online resources available that provide detailed information on credit risk management and how to use it effectively.