Hierarchy
EA-FINSERV (Software Component) SAP Enterprise Extension Financial Services⤷
FS-CML (Application Component) Loans Management⤷
FVVD (Package) Treasury Loans
Basic Data
| Data Element | RISKCLASS |
| Short Description | Risk Class |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | T_RISKCLASS | |
| Data Type | NUMC | Character string with only digits |
| Length | 3 | |
| Decimal Places | 0 | |
| Output Length | 3 | |
| Value Table | TRISKCLASS |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | Risk |
| Medium | 15 | Risk Class |
| Long | 20 | Risk Class |
| Heading | 12 | Risk Class |
Documentation
Definition
Within the Reserve for Bad Debt component, risk classes are used to classify any interrupted payments for a loan and the resulting risk for the lender.
Use
The system supports five risk classes:
- 000: No-Watch (Loan does not need monitoring)
- 100: On-Watch (Loan needs monitoring)
In these cases the payments for the loan have been temporarily interrupted, indicating that the financial circumstances of the borrower are not entirely satisfactory and that the collateral accepted will not provide lasting cover for the loan. This constitutes an increased risk although there is no clear risk of the borrower defaulting on the loan.
- 200: Impaired 1 (Unsecured loan with no clear risk of default)
Loans that have not received payments for a long period of time (non-performing loans) but where there is no clear risk of default due to the credit standing of the borrower and/or the moderate expiry period of the loan.
- 300: Impaired 2 (Unsecured credit with clear risk of default)
Loans that have not received payments for a long period of time (non-performing loans) and where there is an acute risk of default because the borrower has financial difficulties and significant sections of the loan are not secured.
- 400: Foreclosed (Defaulted loan)
After valuation of all the collateral, a waiver of the receivable on the part of the borrower has not been declared and the loans can no longer be totally or partially recovered for financial and/or legal reasons.
The system displays the relevant risk class 300 or 400 using the RBD component in the basic data in the contract on the Evaluation Data tab page. You can enter the risk classes 000, 100 and 200 manually in the contract, if necessary.
Dependencies
Example
History
| Last changed by/on | SAP | 20020520 |
| SAP Release Created in | 110 |
