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  1. SAP Glossary
  2. Processes and Methods
  3. risk provision


What is risk provision in SAP FS-BA-PM - Processes and Methods?


SAP Term: risk provision

  • Component: FS-BA-PM

  • Component Name: Processes and Methods

  • Description: An impairment amount that is calulated for credit default risks including country risks and transfer risks.


Smart SAP Assistant

  • Key Concepts: 
    Risk provision is a process in the Financial Services Business Area (FS-BA) of SAP that helps to identify and manage risks associated with financial transactions. It is part of the Processes and Methods (PM) component of FS-BA. Risk provision helps to ensure that financial transactions are conducted in a safe and secure manner. 
    
    How to use it: 
    Risk provision can be used to identify potential risks associated with financial transactions, such as credit risk, liquidity risk, market risk, and operational risk. It can also be used to assess the impact of these risks on the financial institution and its customers. Risk provision can also be used to develop strategies for mitigating these risks. 
    
    Tips & Tricks: 
    When using risk provision, it is important to consider the potential impact of each risk on the financial institution and its customers. It is also important to consider the potential costs associated with mitigating these risks. Additionally, it is important to ensure that all relevant stakeholders are involved in the risk assessment process. 
    
    Related Information: 
    Risk provision is closely related to other components of FS-BA, such as Financial Instruments (FI), Controlling (CO), and Treasury (TR). Additionally, it is related to other SAP components, such as Human Capital Management (HCM) and Supply Chain Management (SCM).
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