What is risk structure extension in SAP FS-PM - Policy Management?

SAP Term: risk structure extension

• Component: FS-PM

• Component Name: Policy Management

• Description: Contains a range of additional fields that can be used to extend a risk structure node. The appropriate risk structure extension is determined at runtime on the basis of the risk structure node type. A risk structure extension is uniquely identified by a risk structure extension ID, and it can be combined into a risk structure extension group.

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• Key Concepts: 
  Risk Structure Extension is a component of the FS-PM Policy Management module in SAP. It allows users to create and manage risk structures, which are used to define the risk parameters for a particular policy. Risk structures are composed of risk elements, which are used to define the risk parameters for a particular policy. Risk elements can be configured to include different types of risks, such as credit, market, liquidity, and operational risks. 
  
  How to use it: 
  Risk Structure Extension can be used to create and manage risk structures for policies. To create a risk structure, users must first define the risk elements that will be included in the structure. Once the risk elements have been defined, users can then configure the risk parameters for each element. Finally, users can save the risk structure and assign it to a policy. 
  
  Tips & Tricks: 
  When creating a risk structure, it is important to consider the types of risks that are relevant to the policy. This will ensure that the risk parameters are configured correctly and that the policy is adequately protected from potential risks. Additionally, it is important to review and update the risk structure periodically to ensure that it remains up-to-date with any changes in the policy or its associated risks. 
  
  Related Information: 
  For more information on Risk Structure Extension in SAP FS-PM Policy Management, please refer to SAP's official documentation at https://help.sap.com/viewer/product/FS_PM_POLICY_MANAGEMENT/latest/en-US/f9f8d7a2b3e14c8a9f3d7c2b6f5e4d1a.html