What is ALM simulation in SAP IS-B-SA-ALM - Asset/Liability Management?

SAP Term: ALM simulation

• Component: IS-B-SA-ALM

• Component Name: Asset/Liability Management

• Description: Function that is part of ALM. This function is used to simulate how a position may develop. The simulation is based on the user's expectations, such as 10% growth in balance sheet volume in the next year. In addition to the actual position, for all three simulation categories this function generates the following positions: Simulation position = simulation - position contains suggested new transactions only Actual + simulation - position depicts the effect of the suggested new transactions on the actual position In the ALM analysis processes, generated new transactions are valued in the same way as the actual position.

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• Key Concepts: 
  ALM simulation is a component of SAP's Asset/Liability Management (IS-B-SA-ALM) module. It enables users to simulate the effects of different financial decisions on their asset and liability portfolios. This helps them to identify potential risks and opportunities, and to make informed decisions about their investments. 
  
  How to use it: 
  To use ALM simulation, users must first define their asset and liability portfolios. This includes setting up the portfolio structure, defining the portfolio's risk parameters, and setting up the simulation scenarios. Once the portfolio is set up, users can run simulations to analyze the effects of different financial decisions on their portfolios. 
  
  Tips & Tricks: 
  When setting up the portfolio structure, it is important to consider the different types of assets and liabilities that are included in the portfolio. This will help ensure that the simulations are accurate and provide meaningful results. Additionally, it is important to consider the risk parameters when setting up the simulations. This will help ensure that the simulations are realistic and provide useful insights into potential risks and opportunities. 
  
  Related Information: 
  For more information about ALM simulation, please refer to SAP's official documentation on Asset/Liability Management (IS-B-SA-ALM). Additionally, there are many online resources available that provide detailed tutorials on how to use ALM simulation in SAP.