What is collateral event in SAP FS-LMS - Liquidity Management Suite?

SAP Term: collateral event

• Component: FS-LMS

• Component Name: Liquidity Management Suite

• Description: A set of data that includes information about collateral transactions buy, sell, pledge, transfer, and so on. The event can originate from internal and external bank systems.

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• Key Concepts: 
  A collateral event is a type of liquidity event that occurs when a customer or counterparty fails to meet their contractual obligations. This could include a missed payment, a default on a loan, or any other breach of contract. In the FS-LMS Liquidity Management Suite, collateral events are monitored and managed to ensure that the financial institution is not exposed to any unnecessary risk. 
  
  How to use it: 
  The FS-LMS Liquidity Management Suite provides tools to monitor and manage collateral events. This includes the ability to track and analyze the performance of customers and counterparties, as well as the ability to set up automated alerts for any potential breaches of contract. Additionally, the suite provides tools for managing the collateral associated with these events, such as setting up margin calls or adjusting credit limits. 
  
  Tips & Tricks: 
  It is important to stay on top of collateral events in order to minimize risk. Setting up automated alerts can help ensure that any potential breaches of contract are identified quickly and addressed appropriately. Additionally, it is important to have a clear understanding of the terms of any contracts in order to be able to identify potential breaches quickly and accurately. 
  
  Related Information: 
  The FS-LMS Liquidity Management Suite also provides tools for managing other types of liquidity events, such as market events or credit events. Additionally, the suite provides tools for managing cash flows and liquidity positions across multiple currencies and jurisdictions.