What is 'result of counterparty/issuer default risk' in SAP FS-BA-RD - Results Data?

result of counterparty/issuer default risk - Overview

• Component: FS-BA-RD

• Component Name: Results Data

• Description: An analytical result that is based on a key date and that is represented by a result type that refers to the result category 'Credit Risk Exposure Result' in the Layer.

result of counterparty/issuer default risk - Details

• 
  Key Concepts: 
  The result of counterparty/issuer default risk is a component of the Financial Services Business Analytics (FS-BA) Results Data. This component is used to measure the potential losses that could be incurred due to a counterparty or issuer defaulting on their obligations. It is calculated by taking into account the creditworthiness of the counterparty or issuer, the amount of exposure, and the terms of the agreement. 
  
  How to use it: 
  The result of counterparty/issuer default risk can be used to assess the risk associated with a particular counterparty or issuer. It can also be used to compare different counterparties or issuers in order to determine which one poses the least amount of risk. Additionally, it can be used to determine whether a particular counterparty or issuer is suitable for a particular transaction. 
  
  Tips & Tricks: 
  When assessing the result of counterparty/issuer default risk, it is important to consider all relevant factors such as creditworthiness, exposure, and terms of agreement. Additionally, it is important to keep in mind that this component only measures potential losses and does not guarantee that losses will actually occur. 
  
  Related Information: 
  The result of counterparty/issuer default risk is related to other components of FS-BA Results Data such as credit rating, liquidity risk, and market risk. Additionally, it is related to other financial concepts such as credit scoring and credit analysis.