What is forward liquidity exposure in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: forward liquidity exposure

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: A prognosis of future situations which are calculated as the sum of expected positive and negative cash flows during a time period that starts on a designated date and includes a specified period of time.

Smart SAP Assistant

• Key Concepts: 
  Forward liquidity exposure is a term used in SAP's FS-LRM Liquidity and Risk Management component. It refers to the potential future liquidity risk that a company may face due to changes in market conditions or other external factors. This risk can be managed by using forward liquidity exposure management tools, which allow companies to identify and mitigate potential risks before they become a problem. 
  
  How to use it: 
  Forward liquidity exposure management tools can be used to identify potential risks and develop strategies to mitigate them. Companies can use these tools to analyze their current liquidity position, identify potential risks, and develop strategies to reduce their exposure. The tools can also be used to monitor changes in market conditions and other external factors that may affect the company's liquidity position. 
  
  Tips & Tricks: 
  When using forward liquidity exposure management tools, it is important to keep an eye on changes in market conditions and other external factors that may affect the company's liquidity position. Companies should also regularly review their strategies and adjust them as needed in order to ensure that they are adequately managing their forward liquidity exposure. 
  
  Related Information: 
  For more information on forward liquidity exposure management, please refer to SAP's FS-LRM Liquidity and Risk Management documentation. Additionally, there are a number of third-party resources available that provide additional information on this topic.