What is porfolio model for default risk in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: porfolio model for default risk

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: In the calculation of the future distribution of the portfolio, the portfolio model for default risk takes into account possible defaults only.

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• Key Concepts: 
  The portfolio model for default risk is a component of the Credit Risk Management (FS-BA-PM-CR) module in SAP. It is a tool used to assess the creditworthiness of customers and to determine the probability of default for a portfolio of customers. The model uses statistical methods to analyze customer data and calculate the probability of default for each customer in the portfolio. 
  
  How to use it: 
  The portfolio model for default risk can be used to assess the creditworthiness of customers and to determine the probability of default for a portfolio of customers. The model uses statistical methods to analyze customer data and calculate the probability of default for each customer in the portfolio. The model can also be used to identify potential risks associated with a customer's creditworthiness and to develop strategies to mitigate those risks. 
  
  Tips & Tricks: 
  When using the portfolio model for default risk, it is important to ensure that the data used is accurate and up-to-date. Additionally, it is important to consider other factors such as industry trends, economic conditions, and customer behavior when assessing a customer's creditworthiness. 
  
  Related Information: 
  The Credit Risk Management (FS-BA-PM-CR) module in SAP also includes other components such as credit scoring, credit limit management, and collateral management. Additionally, SAP provides a range of tools and services that can be used to manage credit risk more effectively.