What is horizon in SAP IS-B-RA - Risk Analysis?

SAP Term: horizon

• Component: IS-B-RA

• Component Name: Risk Analysis

• Description: Date for which the NPV key figures are calculated. If the horizon and the evaluation date is the same, current NPV key figures are calculated. If the horizon is after the evaluation date, forward rates are used to calculate the NPV key figures.

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• Key Concepts: 
  Horizon is a term used in the SAP IS-B-RA Risk Analysis component. It refers to the time period in which a risk analysis is conducted. The horizon can be set to any length of time, from a few days to several years. The horizon is used to determine the amount of risk that can be taken on during the analysis period. 
  
  How to use it: 
  When setting up a risk analysis in SAP IS-B-RA, the user must first define the horizon. This is done by selecting a start date and an end date for the analysis period. The user can then adjust the horizon by changing either the start or end date, or both. Once the horizon has been set, the user can begin to analyze risks within that time frame. 
  
  Tips & Tricks: 
  When setting up a risk analysis in SAP IS-B-RA, it is important to consider the length of the horizon carefully. A longer horizon may provide more accurate results, but it may also take longer to complete the analysis. It is important to find a balance between accuracy and speed when setting up a risk analysis. 
  
  Related Information: 
  The SAP IS-B-RA Risk Analysis component also allows users to set up multiple horizons for a single risk analysis. This allows users to analyze risks over different time periods and compare results. Additionally, users can also set up multiple horizons for different types of risks, such as financial or operational risks.