What is country value-at-risk in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: country value-at-risk

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Maximum loss arising from country risks that exceeds the expected loss. It is the maximum loss that, with a given probability confidence level, is not exceeded within the period of analysis usually one year. &EXAMPLE& The country value-at-risk of a single transaction is estimated by multiplying the expected net country exposure, CEQ, 1-RR and VaR%.

Smart SAP Assistant

• Key Concepts: 
  Country Value-at-Risk (VaR) is a risk management tool used in the IS-B-RA-CL Default Risk and Limit System component of SAP. It is used to measure the potential losses of a portfolio due to market movements. It is calculated by taking into account the current market conditions, the portfolio’s exposure to different markets, and the expected volatility of those markets. 
  
  How to use it: 
  The Country VaR tool can be used to measure the potential losses of a portfolio due to market movements. To use it, you must first enter the current market conditions, the portfolio’s exposure to different markets, and the expected volatility of those markets. The tool will then calculate the potential losses of the portfolio based on these inputs. 
  
  Tips & Tricks: 
  When using the Country VaR tool, it is important to ensure that all inputs are accurate and up-to-date. This will ensure that the results are as accurate as possible. Additionally, it is important to consider other factors such as liquidity risk when calculating potential losses. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System component of SAP also includes other risk management tools such as Credit Risk and Market Risk. Additionally, there are other risk management tools available outside of SAP that can be used in conjunction with Country VaR.