What is evaluation type in SAP IS-B-RA - Risk Analysis?

SAP Term: evaluation type

• Component: IS-B-RA

• Component Name: Risk Analysis

• Description: Groups together market parameters and methods that are used in Risk Management evaluations. Ensures that market prices for example, yield curves, exchange rate types, security types or volatility types and calculation methods are assigned to financial instruments, and hence can be applied in NPV or value-at-risk calculations. Where the standard settings are not to be used, market parameters and methods are assigned to the transaction by means of the valuation rule.

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• Key Concepts: 
  Evaluation type is a feature of the IS-B-RA Risk Analysis component of SAP. It is used to define the criteria for evaluating risks and assigning them a risk rating. The evaluation type is used to determine the risk rating for each risk, which is then used to determine the overall risk level of a project or process. 
  
  How to use it: 
  The evaluation type is set up in the Risk Analysis component of SAP. It can be configured to include different criteria for evaluating risks, such as probability, impact, and severity. The criteria can be weighted differently depending on the specific needs of the project or process. Once the evaluation type is set up, it can be used to assign a risk rating to each risk that is identified. 
  
  Tips & Tricks: 
  When setting up an evaluation type, it is important to consider the specific needs of the project or process. Different criteria may need to be weighted differently depending on the context. Additionally, it is important to ensure that all criteria are taken into account when assigning a risk rating. 
  
  Related Information: 
  The IS-B-RA Risk Analysis component of SAP also includes features such as risk mitigation strategies and reporting capabilities. Additionally, there are other components of SAP that can be used in conjunction with Risk Analysis, such as Business Process Management and Business Intelligence.