What is adjustment rate in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: adjustment rate

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Technical interim result in attributable amount determination. This represents the ratio of a collateral item to the total of all collateral provided that is of the same collateral priority. The calculation of the adjustment rate is different for gross/net and counterparty/issuer risk and country risk.

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• Key Concepts: 
  Adjustment rate is a parameter used in the IS-B-RA-CL Default Risk and Limit System. It is used to adjust the risk limit of a customer or counterparty based on their creditworthiness. The adjustment rate is calculated by taking into account the customer's credit rating, financial strength, and other factors. 
  
  How to use it: 
  The adjustment rate is used to adjust the risk limit of a customer or counterparty. This adjustment rate is calculated by taking into account the customer's credit rating, financial strength, and other factors. The adjustment rate can be used to increase or decrease the risk limit of a customer or counterparty. 
  
  Tips & Tricks: 
  When calculating the adjustment rate, it is important to consider all relevant factors such as the customer's credit rating, financial strength, and other factors. This will ensure that the risk limit of a customer or counterparty is adjusted accurately. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System is part of SAP's Risk Management module. It provides an integrated solution for managing credit risk and setting limits for customers and counterparties. The system also provides tools for monitoring and reporting on credit risk exposure.