What is scenario for counterparty/issuer risk in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: scenario for counterparty/issuer risk

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Particular set of variables depicting economic conditions risk factors that are relevant for counterparty credit risk. For example, market data, economic indicators, probabilities of rating migration. The uncertainty surrounding the future development of such factors can be taken into account by looking at a range of different scenarios in Monte Carlo simulation.

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• Key Concepts: 
  Scenario for counterparty/issuer risk is a component of the Credit Risk Management module in SAP Financial Services Business Application (FS-BA-PM-CR). It enables users to assess the creditworthiness of counterparties and issuers by analyzing their financial data and creating scenarios to simulate potential risks. The module also provides tools to monitor and manage credit risk exposure. 
  
  How to use it: 
  The Scenario for Counterparty/Issuer Risk component of FS-BA-PM-CR Credit Risk Management can be used to assess the creditworthiness of counterparties and issuers. It allows users to analyze financial data and create scenarios to simulate potential risks. The module also provides tools to monitor and manage credit risk exposure. 
  
  Tips & Tricks: 
  When using the Scenario for Counterparty/Issuer Risk component of FS-BA-PM-CR Credit Risk Management, it is important to ensure that all financial data is up-to-date and accurate. Additionally, users should take advantage of the tools provided by the module to monitor and manage credit risk exposure. 
  
  Related Information: 
  For more information on the Scenario for Counterparty/Issuer Risk component of FS-BA-PM-CR Credit Risk Management, please refer to the SAP Help Portal or contact your local SAP representative.