What is add-on in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: add-on

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Risk markup that takes into account the default risk arising from transactions, the market value of which can increase over a particular period of time. The add-on is calculated by multiplying the assessment basis by an add-on factor.

Smart SAP Assistant

• Key Concepts: 
  An add-on is a software component that extends the functionality of an existing SAP system. In the case of the IS-B-RA-CL Default Risk and Limit System, the add-on provides a comprehensive risk and limit management system for banks and other financial institutions. It enables users to manage their risk exposure, set limits, and monitor their compliance with regulatory requirements. 
  
  How to use it: 
  The IS-B-RA-CL Default Risk and Limit System add-on can be used to set up risk and limit profiles for different types of customers, products, and services. It also provides a comprehensive set of reports and analytics to help users monitor their risk exposure. Additionally, it can be used to generate alerts when limits are exceeded or when there is a potential risk of default. 
  
  Tips & Tricks: 
  When setting up the IS-B-RA-CL Default Risk and Limit System, it is important to ensure that all relevant data is included in the system. This includes customer information, product details, and any other relevant data that could affect the risk profile. Additionally, it is important to regularly review the system to ensure that all limits are up to date and that any changes in customer or product information are reflected in the system. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System is part of SAP's Financial Services Network (FSN) suite of products. It is designed to help banks and other financial institutions manage their risk exposure and comply with regulatory requirements. Additionally, it can be integrated with other FSN products such as SAP Credit Management and SAP Cash Management for a more comprehensive risk management solution.