What is baseline scenario in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: baseline scenario

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: A set of conditions describing business under normal circumstances, that is, without external or internal stress or shocks applied.

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• Key Concepts: 
  Baseline scenario is a feature of the FS-LRM Liquidity and Risk Management component of SAP. It allows users to create a “baseline” or reference point for their liquidity and risk management activities. This baseline can be used to compare actual results against the expected results, allowing users to identify any discrepancies or potential risks. 
  
  How to use it: 
  To use the baseline scenario feature, users must first define the parameters of their baseline. This includes setting up the liquidity and risk management activities that will be monitored, as well as defining the expected results. Once the baseline is set up, users can then monitor their actual results against the baseline to identify any discrepancies or potential risks. 
  
  Tips & Tricks: 
  When setting up a baseline scenario, it is important to ensure that all relevant parameters are included in order to get an accurate comparison between actual and expected results. Additionally, it is important to regularly review and update the baseline scenario in order to ensure that it remains relevant and accurate. 
  
  Related Information: 
  For more information on the FS-LRM Liquidity and Risk Management component of SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this component effectively.