What is scenario segmentation in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: scenario segmentation

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: The non-overlapping division of the scenario portfolio into scenario segments. A transaction can come under more than one scenario segment. In this case, the transaction is assigned to only one scenario segment depending on the sequence in which the selection criteria that define the segment are executed. The transaction is assigned to the first segment that meets the selection criteria. &EXAMPLE& Segment 1: "Automobile industry in Germany" Segment 2: "European Union"

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• Key Concepts: 
  Scenario segmentation is a feature of the Credit Risk Management component of SAP FS-BA-PM-CR. It allows users to define different scenarios for credit risk management, such as different risk levels, and assign them to different customer segments. This helps to ensure that the right risk management measures are applied to each customer segment. 
  
  How to use it: 
  To use scenario segmentation, users must first define the different scenarios they want to use for credit risk management. This can include different risk levels, such as low, medium, and high. Once the scenarios have been defined, users can then assign them to different customer segments. This can be done manually or automatically using rules. 
  
  Tips & Tricks: 
  When defining scenarios for credit risk management, it is important to consider the different types of customers that may be present in each segment. For example, a segment with high-risk customers may require more stringent risk management measures than a segment with low-risk customers. 
  
  Related Information: 
  For more information on scenario segmentation in SAP FS-BA-PM-CR Credit Risk Management, please refer to the official SAP documentation.