What is portfolio hierarchy in SAP IS-B-RA - Risk Analysis?

SAP Term: portfolio hierarchy

• Component: IS-B-RA

• Component Name: Risk Analysis

• Description: Hierarchical grouping of the characteristics of a view that is used to assign and aggregate financial transactions according to rules defined by the customer. More than one portfolio hierarchy can be created for each view, though each of the portfolio hierarchies refers to the characteristic hierarchy of the characteristics of one view.

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• Key Concepts: 
  Portfolio hierarchy is a feature of the IS-B-RA Risk Analysis component of SAP. It allows users to create a hierarchical structure of portfolios, which can be used to group and analyze risk data. The hierarchy can be used to identify and analyze risk across multiple portfolios, as well as to identify and analyze risk within a single portfolio. 
  
  How to use it: 
  To use the portfolio hierarchy feature, users must first create a portfolio hierarchy in the IS-B-RA Risk Analysis component. This can be done by selecting the “Create Portfolio Hierarchy” option from the main menu. Once the hierarchy is created, users can then add portfolios to the hierarchy and assign them to different levels in the hierarchy. 
  
  Tips & Tricks: 
  When creating a portfolio hierarchy, it is important to consider how the different levels of the hierarchy will be used. For example, if you are creating a portfolio hierarchy for analyzing risk across multiple portfolios, you may want to create separate levels for each portfolio type (e.g., stocks, bonds, etc.). This will allow you to easily identify and analyze risk across different types of portfolios. 
  
  Related Information: 
  For more information on using the portfolio hierarchy feature in IS-B-RA Risk Analysis, please refer to the SAP Help documentation. Additionally, there are several online tutorials available that provide step-by-step instructions on how to create and use a portfolio hierarchy in IS-B-RA Risk Analysis.