What is determination procedure in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: determination procedure

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Groups together the methods for determining attributable amounts for all transactions of a particular risk aspect related either to counterparty/issuer risk or to country risk. Different methods are used for volume-oriented and risk-oriented determination procedures. The volume-oriented procedure for calculating the attributable amount focusses on nominal amounts/NPVs. The risk-oriented procedure examines how the possible losses from a transaction may vary.

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• Key Concepts: 
  Determination procedure is a feature of the IS-B-RA-CL Default Risk and Limit System. It is used to define the rules and conditions that determine the risk and limit values for a particular customer or transaction. The procedure can be configured to include multiple steps, such as checking customer credit ratings, setting limits based on customer type, and setting limits based on transaction type. 
  
  How to use it: 
  The determination procedure is used to define the rules and conditions that determine the risk and limit values for a particular customer or transaction. The procedure can be configured to include multiple steps, such as checking customer credit ratings, setting limits based on customer type, and setting limits based on transaction type. The procedure can also be used to set different risk and limit values for different customers or transactions. 
  
  Tips & Tricks: 
  When configuring the determination procedure, it is important to consider the different types of customers and transactions that will be using the system. This will help ensure that the correct risk and limit values are set for each customer or transaction. Additionally, it is important to consider any external factors that may affect the risk and limit values, such as market conditions or changes in customer credit ratings. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes features such as monitoring of customer credit ratings, automatic adjustment of risk and limit values based on external factors, and reporting of risk and limit values. Additionally, there are other SAP products that can be used in conjunction with the IS-B-RA-CL Default Risk and Limit System to provide additional features such as fraud detection or automated compliance checks.