What is risk transfer in SAP FS-TXS - Funding Management?

SAP Term: risk transfer

• Component: FS-TXS

• Component Name: Funding Management

• Description: Asset risk transfer generally meaning here default risk by the asset originator to the investor by way of the funding transaction. Therefore, the originator will not suffer any losses as a result of the asset default.

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• Key Concepts: 
  Risk transfer is a feature of SAP FS-TXS Funding Management that allows users to transfer the risk of a loan from one party to another. This is done by transferring the loan from one party to another, with the new party taking on the risk of the loan. The risk transfer feature allows users to manage their risk exposure and reduce their overall risk.
  
  How to use it: 
  In order to use the risk transfer feature, users must first create a loan agreement between two parties. Once the agreement is created, users can then transfer the loan from one party to another. The new party will then take on the risk of the loan, and the original party will no longer be responsible for it. 
  
  Tips & Tricks: 
  When using the risk transfer feature, it is important to ensure that all parties involved are aware of the risks associated with the loan. Additionally, it is important to ensure that all parties involved are in agreement with the terms of the loan before transferring it. 
  
  Related Information: 
  The risk transfer feature is part of SAP FS-TXS Funding Management, which is a suite of tools designed to help users manage their financial risks. Additionally, SAP FS-TXS Funding Management also includes features such as loan origination, portfolio management, and credit analysis.