What is aggregation category in SAP IS-B-RA - Risk Analysis?

SAP Term: aggregation category

• Component: IS-B-RA

• Component Name: Risk Analysis

• Description: Rule used in the value-at-risk evaluation that governs how the risk factors of one level in the risk hierarchy are aggregated to the next level of the hierarchy. SAP Banking contains the following aggregation categories: Correlated Differentiated Absolute addition Addition according to the plus/minus sign Addition of directly preceding nodes The aggregation category takes effect in the value-at-risk evaluation only if the variance/covariance approach is used.

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• Key Concepts: 
  Aggregation category is a feature of the IS-B-RA Risk Analysis component of SAP. It is used to group together different types of risks and to provide a more comprehensive overview of the risk landscape. This allows for better risk management and decision making. 
  
  How to use it: 
  The aggregation category feature can be used to group together different types of risks, such as financial, operational, and legal risks. This allows for a more comprehensive view of the risk landscape and helps to identify potential areas of concern. The aggregation category feature can also be used to identify correlations between different types of risks, which can help inform decision making. 
  
  Tips & Tricks: 
  When using the aggregation category feature, it is important to ensure that the categories are clearly defined and that all relevant risks are included in each category. This will help ensure that the risk landscape is accurately represented and that potential correlations between different types of risks are identified. 
  
  Related Information: 
  For more information on the IS-B-RA Risk Analysis component of SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide further information on risk management and decision making using SAP software.