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

risk parameter specification - Overview

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Umbrella term for 'risk parameter shift' and 'risk parameter value'.

risk parameter specification - Details

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  Key Concepts: 
  Risk parameter specification is a component of the Credit Risk Management module in SAP. It allows users to define and manage risk parameters for credit risk management. Risk parameters are used to determine the creditworthiness of customers and to assess the risk associated with granting them credit. 
  
  How to use it: 
  Risk parameter specification can be used to define and manage risk parameters for credit risk management. This includes setting up risk classes, assigning risk parameters to customers, and setting up credit limits. The risk parameters can be used to assess the creditworthiness of customers and determine the amount of credit that can be granted. 
  
  Tips & Tricks: 
  When setting up risk parameters, it is important to consider the customer’s financial situation, payment history, and other factors that may affect their ability to pay back the loan. It is also important to consider the customer’s industry and the current economic climate when setting up risk parameters. 
  
  Related Information: 
  For more information on Credit Risk Management in SAP, please refer to the SAP Help Portal or contact your local SAP representative.