What is secondary exposure in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: secondary exposure

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Attributable amount that is assigned to a collateral item in the context of a particular primary transaction. See also the primary exposure.

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• Key Concepts: 
  Secondary exposure is a concept used in the IS-B-RA-CL Default Risk and Limit System of SAP. It is a measure of the risk associated with a particular transaction or activity. It is calculated by taking into account the amount of money involved in the transaction, the creditworthiness of the counterparty, and other factors. 
  
  How to use it: 
  In order to calculate secondary exposure, users must first enter the details of the transaction into SAP. This includes information such as the amount of money involved, the creditworthiness of the counterparty, and any other relevant factors. Once this information is entered, SAP will calculate the secondary exposure associated with the transaction. 
  
  Tips & Tricks: 
  When entering information into SAP for calculating secondary exposure, it is important to be as accurate as possible. This will ensure that SAP can accurately calculate the risk associated with the transaction. Additionally, it is important to keep track of any changes in creditworthiness or other factors that could affect the secondary exposure calculation. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes other concepts such as primary exposure and collateral coverage. It is important to understand how these concepts interact with each other in order to accurately assess risk associated with a particular transaction or activity. Additionally, understanding how these concepts interact can help users make better decisions when managing their risk.