What is assessment basis in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: assessment basis

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: For derivative transactions, this is the amount dependent on the product and that is to be multiplied by the add-on factor in order to obtain the add-on amount. For transactions that are traditionally off-balance-sheet transactions, this is the amount that is to be multiplied by the credit conversion factor CCF to obtain the exposure at default EAD.

Smart SAP Assistant

• Key Concepts: 
  The assessment basis in the IS-B-RA-CL Default Risk and Limit System is a set of criteria used to determine the risk associated with a customer or counterparty. It is used to assess the creditworthiness of a customer or counterparty and to determine the appropriate credit limit for them. The assessment basis includes factors such as the customer's financial history, payment history, and other relevant information. 
  
  How to use it: 
  The assessment basis is used to assess the creditworthiness of a customer or counterparty. The assessment basis includes factors such as the customer's financial history, payment history, and other relevant information. This information is used to determine the appropriate credit limit for the customer or counterparty. The assessment basis can also be used to monitor changes in the customer's creditworthiness over time. 
  
  Tips & Tricks: 
  When assessing a customer or counterparty, it is important to consider all relevant factors in order to make an accurate assessment. It is also important to regularly review and update the assessment basis in order to ensure that it remains up-to-date and accurate. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System is part of SAP's Credit Management module. This module provides tools for managing credit risk, setting credit limits, and monitoring customer creditworthiness. For more information about SAP Credit Management, please visit https://help.sap.com/viewer/product/SAP_CREDIT_MANAGEMENT/latest/en-US