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

SAP Term: risk parameter value

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: The value of a stressed risk parameter that has been explicitly entered in a credit risk scenario. &EXAMPLE& LGD = 0.4

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• Key Concepts: 
  Risk parameter value is a numerical value used in the Credit Risk Management (CRM) component of SAP Financial Services (FS-BA-PM-CR). It is used to define the risk associated with a particular customer or transaction. The risk parameter value is calculated based on the customer's creditworthiness, payment history, and other factors. 
  
  How to use it: 
  The risk parameter value is used to determine the credit limit for a customer or transaction. The higher the risk parameter value, the lower the credit limit. The risk parameter value can also be used to determine whether a customer should be granted a loan or not. 
  
  Tips & Tricks: 
  It is important to keep track of the risk parameter values for each customer or transaction. This will help you make informed decisions about granting credit and setting credit limits. 
  
  Related Information: 
  The risk parameter value is closely related to the credit score of a customer. The credit score is an indication of the customer's creditworthiness and can be used to determine the risk parameter value.