What is rsf factor in SAP (FS-LRM - Liquidity and Risk Management)?

SAP Term: rsf factor

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: Parameter assigned to various types of assets and intended to approximate the amount of a particular asset that could not be monetised through sale or use as collateral in a secured borrowing on an extended basis during a liquidity event lasting one year. Under this standard such amounts are expected to be supported by stable funding.

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• Key Concepts: 
  The rsf factor is a component of the FS-LRM Liquidity and Risk Management module in SAP. It is a risk-sensitivity factor that is used to calculate the liquidity risk of a financial institution. The rsf factor is based on the Basel III framework and is used to measure the liquidity risk of a financial institution. 
  
  How to use it: 
  The rsf factor is used to calculate the liquidity risk of a financial institution. The calculation is based on the Basel III framework and takes into account the institution's assets, liabilities, capital, and other factors. The rsf factor is then used to determine the liquidity risk of the institution. 
  
  Tips & Tricks: 
  When calculating the rsf factor, it is important to consider all relevant factors such as assets, liabilities, capital, and other factors. Additionally, it is important to ensure that the calculation is accurate and up-to-date in order to get an accurate assessment of the institution's liquidity risk. 
  
  Related Information: 
  The rsf factor is part of the Basel III framework which was developed by the Bank for International Settlements (BIS). The Basel III framework provides guidance on how financial institutions should manage their liquidity risk. Additionally, there are other components of the Basel III framework such as capital requirements and stress testing that should be taken into consideration when assessing an institution's liquidity risk.