What is 'risk category' in SAP FS-BA-PM-CR - Credit Risk?

risk category - Overview

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Classification of business partners and product types in the standardized approach. Equivalent of the "risk class" in the IRB approach.

risk category - Details

• 
  Key Concepts: 
  Risk category is a component of the Credit Risk Management (FS-BA-PM-CR) module in SAP. It is used to classify and group credit risks into different categories, such as customer risk, country risk, and industry risk. This helps to identify and manage potential risks more effectively. 
  
  How to use it: 
  In SAP, risk categories are created and managed in the Credit Risk Management module. The user can define the criteria for each category, such as customer credit limit, payment terms, and industry sector. The user can also assign a risk rating to each category, which will be used to determine the credit limit for customers in that category. 
  
  Tips & Tricks: 
  When creating risk categories in SAP, it is important to consider the different types of risks that may be associated with customers. For example, a customer in a high-risk industry may require a higher credit limit than one in a low-risk industry. Additionally, it is important to regularly review and update the criteria for each category to ensure that they remain relevant and up-to-date. 
  
  Related Information: 
  For more information on Credit Risk Management in SAP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_Financials/6.0/en-US/f3d9f8a7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7