What is underlying risk in SAP GRC-RM - GRC Risk Management?

SAP Term: underlying risk

• Component: GRC-RM

• Component Name: GRC Risk Management

• Description: Refers to multiple similar risks that can be grouped together into one risk. Useful in reporting to exclude duplicate risks that have been identified in multiple areas of an organization.

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• Key Concepts: 
  Underlying risk is a type of risk that is associated with a particular asset, liability, or transaction. It is the risk that is inherent in the asset, liability, or transaction itself and cannot be mitigated by any other means. For example, the underlying risk of a loan is the risk that the borrower will default on the loan. 
  
  How to use it: 
  In SAP GRC Risk Management, underlying risk can be used to identify and assess potential risks associated with a particular asset, liability, or transaction. This can help organizations to better understand and manage their risks. The underlying risk can then be used to develop strategies for mitigating those risks. 
  
  Tips & Tricks: 
  When assessing underlying risk, it is important to consider both the potential upside and downside of the asset, liability, or transaction. This will help organizations to better understand the potential risks associated with their investments and transactions. 
  
  Related Information: 
  SAP GRC Risk Management provides tools for assessing and managing underlying risk. These tools include Risk Analysis, Risk Mitigation Strategies, and Risk Monitoring. These tools can help organizations to better understand and manage their risks.