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

risk weight subclass - Overview

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Subclasses for real estate financing to which different risk weights can be assigned.

risk weight subclass - Details

• 
  Key Concepts: 
  Risk weight subclass is a component of the Credit Risk Management (FS-BA-PM-CR) module in SAP. It is used to assign a risk weight to a particular credit risk. The risk weight is determined by the credit rating of the customer, the type of collateral, and other factors. The risk weight is then used to calculate the expected loss for a particular credit risk. 
  
  How to use it: 
  In order to use the risk weight subclass, you must first define the risk weights for each credit risk. This can be done in the Credit Risk Management module in SAP. Once the risk weights have been defined, they can be assigned to each customer or transaction in order to calculate the expected loss for that particular credit risk. 
  
  Tips & Tricks: 
  It is important to ensure that the risk weights are accurate and up-to-date in order to ensure that the expected loss calculations are accurate. Additionally, it is important to review and update the risk weights periodically in order to ensure that they remain relevant and accurate. 
  
  Related Information: 
  For more information on Credit Risk Management in SAP, please refer to the SAP Help Portal or contact your local SAP representative.