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

SAP Term: risk structure type

• Component: FS-PM

• Component Name: Policy Management

• Description: Determines, from a business and technical perspective, the node types on which the risk structure of an insurance company is based, and at which level of the hierarchy these node types are used. Example For the risk structure type "Commercial General Liability", which is used in commercial liability insurance in the USA, the risk structure consists of the following node types: State Location Classification

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• Key Concepts: 
  Risk structure type is a component of the SAP FS-PM Policy Management module. It is used to define the structure of a risk, including the risk’s attributes, such as its name, description, and risk category. Risk structure types are used to create a consistent framework for managing risks across an organization. 
  
  How to use it: 
  Risk structure types are created in the SAP FS-PM Policy Management module. They can be used to define the attributes of a risk, such as its name, description, and risk category. Once created, they can be used to create new risks or modify existing ones. 
  
  Tips & Tricks: 
  When creating a risk structure type, it is important to ensure that all of the attributes are properly defined. This will ensure that all risks created using this structure type will have consistent attributes and can be easily managed. 
  
  Related Information: 
  For more information on SAP FS-PM Policy Management and risk structure types, please refer to the SAP Help Portal or contact your local SAP representative.