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

collateral valuation rule - Overview

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Controls the primary-risk-reducing effect and the secondary risk display of collateral. The collateral valuation rule is stored in the determination procedure.

collateral valuation rule - Details

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  Key Concepts: 
  Collateral Valuation Rule is a component of the IS-B-RA-CL Default Risk and Limit System. It is used to determine the value of collateral that is used to secure a loan. The value of the collateral is determined by taking into account factors such as market conditions, the type of collateral, and the borrower's creditworthiness. 
  
  How to use it: 
  The Collateral Valuation Rule can be used to determine the value of collateral that is used to secure a loan. The value of the collateral is determined by taking into account factors such as market conditions, the type of collateral, and the borrower's creditworthiness. The Collateral Valuation Rule can also be used to set limits on how much collateral can be used to secure a loan. 
  
  Tips & Tricks: 
  When using the Collateral Valuation Rule, it is important to consider all relevant factors when determining the value of the collateral. This includes market conditions, the type of collateral, and the borrower's creditworthiness. It is also important to set limits on how much collateral can be used to secure a loan. 
  
  Related Information: 
  The Collateral Valuation Rule is part of the IS-B-RA-CL Default Risk and Limit System. This system also includes components such as Credit Risk Analysis, Credit Limit Management, and Credit Risk Monitoring. These components are used to manage and monitor credit risk in an