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

SAP Term: scenario progression

• Component: IS-B-SA-ALM

• Component Name: Asset/Liability Management

• Description: A sequence of scenarios that makes it possible to depict a complex progression of market data. For each scenarion in the progression, the price parameters for example, interest rate are found by interpolating the relevant values from the preceding and subsequent scenario. Example of a scenario progression: Jan-Feb 2002: Scenario A 1% increase in interest rate March 2002: Scenario B constant interest rate April-June 2002: Scenario C 1% decrease in interest rate

Smart SAP Assistant

• Key Concepts: 
  Scenario Progression is a feature of the IS-B-SA-ALM Asset/Liability Management component of SAP. It allows users to create and manage multiple scenarios for their asset and liability management processes. This feature enables users to compare different scenarios and make informed decisions about their asset and liability management strategies. 
  
  How to use it: 
  To use Scenario Progression, users must first create a scenario in the IS-B-SA-ALM Asset/Liability Management component. Once the scenario is created, users can then add additional scenarios to compare and contrast different strategies. The user can then select the best scenario based on their analysis. 
  
  Tips & Tricks: 
  When creating scenarios, it is important to consider all possible outcomes and plan accordingly. Additionally, it is important to keep track of changes made to each scenario so that the user can easily compare them. 
  
  Related Information: 
  The IS-B-SA-ALM Asset/Liability Management component also includes features such as Risk Analysis, Portfolio Optimization, and Stress Testing. These features can be used in conjunction with Scenario Progression to further analyze and optimize asset and liability management strategies.