What is risk parameter shift in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: risk parameter shift

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: The change in the value of a risk parameter in a credit risk scenario. This is often entered as a relative or absolute shift in percent. The shift is applied to the current value of the risk parameter to be stressed. &EXAMPLE& PD + 0.5%

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• Key Concepts: 
  Risk parameter shift is a feature of the Credit Risk Management component of SAP Financial Services Business Analytics (FS-BA-PM-CR). It allows users to adjust the risk parameters of a credit portfolio in order to assess the impact of changes in the risk parameters on the credit portfolio. This feature helps users to identify potential risks and take appropriate measures to mitigate them. 
  
  How to use it: 
  Risk parameter shift can be used by selecting the “Risk Parameter Shift” option from the Credit Risk Management menu. The user can then select the desired risk parameters and adjust them accordingly. The user can also select a range of values for each parameter and view the impact of changes in these values on the credit portfolio. 
  
  Tips & Tricks: 
  It is important to remember that risk parameter shift is only applicable to credit portfolios and not to individual loans or customers. Additionally, it is important to ensure that all risk parameters are adjusted within their valid ranges in order to avoid any unexpected results. 
  
  Related Information: 
  For more information on risk parameter shift, please refer to the SAP Help documentation for Credit Risk Management. Additionally, there are several online tutorials available which provide step-by-step instructions on how to use this feature.