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

SAP Term: segmentation

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: Sets of cash flow charcteristic values, risk parameter or risk parameter curve values, and optionally periods.

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• Key Concepts: 
  Segmentation in SAP FS-LRM Liquidity and Risk Management is the process of dividing a portfolio into smaller parts or segments. This allows for more detailed analysis of the portfolio and helps to identify potential risks and opportunities. Segmentation can be done based on various criteria such as asset type, geography, sector, etc. 
  
  How to use it: 
  In SAP FS-LRM Liquidity and Risk Management, segmentation can be done by creating a segmentation rule. This rule defines the criteria for segmenting the portfolio and can be used to generate reports that provide insights into the performance of each segment. Additionally, segmentation can be used to identify potential risks and opportunities in the portfolio. 
  
  Tips & Tricks: 
  When creating a segmentation rule, it is important to consider the criteria that will be used for segmenting the portfolio. This will ensure that the segments are meaningful and provide useful insights into the performance of the portfolio. Additionally, it is important to review the results of the segmentation regularly to ensure that any changes in the portfolio are reflected in the segments. 
  
  Related Information: 
  For more information on segmentation in SAP FS-LRM Liquidity and Risk Management, please refer to the official documentation available on SAP's website. Additionally, there are several online resources available that provide tutorials and best practices for using segmentation in SAP FS-LRM Liquidity and Risk Management.