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

SAP Term: scenario

• Component: IS-B-SA-ALM

• Component Name: Asset/Liability Management

• Description: A set of market data created by the user and that defines a plausible market data situation, such as a period of high interest rates with an inverse yield curve.A scenario can contain yield curves, exchange rates, securities prices, securities indexes, and the corresponding volatilities.It is used to assess various analyses in risk management, for example in ALM.A scenario can be used to describe historical market data and future market data.Here, the horizon date defines on which future date the scenario applies.

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• Key Concepts: 
  A scenario in SAP IS-B-SA-ALM Asset/Liability Management is a set of data that is used to simulate different financial situations. It allows users to analyze the impact of different financial decisions on their business. Scenarios can be used to compare different strategies, forecast future performance, and identify potential risks.
  
  How to use it: 
  To use a scenario in SAP IS-B-SA-ALM Asset/Liability Management, users must first create a scenario by entering the relevant data. This includes the current financial situation, as well as any changes that are expected to occur in the future. Once the scenario is created, users can then run simulations to analyze the impact of different decisions on their business.
  
  Tips & Tricks: 
  When creating a scenario in SAP IS-B-SA-ALM Asset/Liability Management, it is important to ensure that all relevant data is included. This includes both current and future data, as well as any assumptions that are being made about the future. Additionally, it is important to run multiple simulations with different scenarios in order to get a comprehensive view of the potential impacts of different decisions.
  
  Related Information: 
  SAP IS-B-SA-ALM Asset/Liability Management also includes other features such as portfolio management and risk analysis. These features can be used in conjunction with scenarios to further analyze the potential impacts of different decisions on a business. Additionally, SAP provides resources such as tutorials and webinars to help users get started with using scenarios in SAP IS-B-SA-ALM Asset/Liability Management.