What is unsecured exposure in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: unsecured exposure

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Exposure amount adjusted by the value of the collateral. The customer defines how the value of the collateral is calculated that is assigned to a single transaction.

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• Key Concepts: 
  Unsecured exposure is a term used in the SAP Credit Risk Management (FS-BA-PM-CR) component to refer to the amount of credit extended to a customer without any collateral or security. This type of exposure is considered to be riskier than secured exposure, as there is no guarantee that the customer will be able to repay the loan. 
  
  How to use it: 
  In order to manage unsecured exposure, SAP Credit Risk Management provides a number of tools and features. These include credit scoring, credit limits, and monitoring of customer payment behavior. Credit scoring helps to assess the risk associated with a customer, while credit limits help to ensure that the amount of credit extended does not exceed a certain threshold. Monitoring of customer payment behavior helps to identify any potential issues with repayment. 
  
  Tips & Tricks: 
  When managing unsecured exposure, it is important to ensure that the credit limits are set at an appropriate level. This will help to minimize the risk associated with extending credit without any security. It is also important to monitor customer payment behavior on a regular basis in order to identify any potential issues with repayment. 
  
  Related Information: 
  For more information on managing unsecured exposure in SAP Credit Risk Management, please refer to the official SAP documentation. Additionally, there are a number of online resources available which provide further information on this topic.