What is collateral type in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: collateral type

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Defines a particular combination of collateral category and, if appropriate, the default value for the priority of the collateral.

Smart SAP Assistant

• Key Concepts: 
  Collateral type is a component of the IS-B-RA-CL Default Risk and Limit System. It is used to define the type of collateral that can be used to secure a loan or other financial transaction. Collateral types can include cash, securities, real estate, and other assets. 
  
  How to use it: 
  In order to use the collateral type component of the IS-B-RA-CL Default Risk and Limit System, users must first define the type of collateral they wish to use. This can be done by selecting from a list of available collateral types or by creating a new type. Once the collateral type has been defined, users can then specify the amount of collateral required for the transaction. 
  
  Tips & Tricks: 
  When defining a new collateral type, it is important to ensure that all relevant information is included. This includes details such as the name of the asset, its value, and any restrictions or conditions associated with it. Additionally, users should ensure that they are familiar with any applicable laws or regulations related to the use of the collateral type. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes components such as credit limit and risk limit which are used to define the maximum amount of credit or risk that can be taken on for a particular transaction. Additionally, users may also want to consider using other components such as credit scoring and credit monitoring in order to further manage their risk exposure.