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

SAP Term: global collateral

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Can collateralize a variety of financial transactions, which are defined by assigning the relevant characteristic values. Global collateral reduces the consumption of the limit in the context of the relevant limit characteristics.

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• Key Concepts: 
  Global collateral is a feature of the IS-B-RA-CL Default Risk and Limit System in SAP. It allows companies to manage their global collateral requirements in a single system, rather than having to manage them separately in multiple systems. Global collateral is used to secure the company’s financial obligations and protect it from potential losses. 
  
  How to use it: 
  The global collateral feature of the IS-B-RA-CL Default Risk and Limit System allows companies to set up global collateral agreements with their counterparties. These agreements specify the terms of the collateral, such as the type of collateral, the amount of collateral, and the duration of the agreement. Companies can also set up global collateral limits, which specify the maximum amount of collateral that can be held by a counterparty at any given time. 
  
  Tips & Tricks: 
  When setting up global collateral agreements, it is important to ensure that all parties involved are aware of the terms and conditions of the agreement. Additionally, companies should regularly review their global collateral agreements to ensure that they are still valid and up-to-date. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes features such as credit risk management, limit monitoring, and reporting. Additionally, SAP provides a range of other solutions for managing global collateral requirements, such as SAP Global Collateral Management and SAP Collateral Management.