Organization in Risk Analysis 

In the SAP system, the analysis structure is the organizational unit used to analyze and control risk in businesses. The analysis structure is the highest-level organizational and evaluation unit in Risk Analysis.

You need to define analysis characteristics for every analysis structure. These characteristics are your evaluation criteria. They are used in reporting to create reports.

In addition to using the characteristics that are predefined in the standard system, you can define characteristics of your own. The characteristics predefined system are listed in a field catalog. This field catalog is also available for the operating concern in the Profitability Analysis (IS-B-PA) component. This means that you can also use the characteristics of an operating concern for an analysis structure.

The analysis structure is composed of all characteristics.

In addition, you can assign an analysis structure to more than one view. Views enable you to define a particular point of view for analyzing the analysis structure. This involves restricting which characteristics are available for reporting to a sub-set of those contained in the analysis structure.

Note that only one internal view is used in Market Risk Analyzer in Treasury and Risk Management. This is not visible to the user.

In the Industry Solution SAP Banking, views create the link to the summarization rules. The summarization rules control to what extent the cash flows of a financial transaction are condensed into a single unit that is used for evaluation purposes.

You can create portfolio hierarchies based on the characteristics belonging to a view. A portfolio hierarchy organizes the characteristics of the view into a hierarchy and defines the aggregation levels at which the valuations are carried out.

In the same way, you can also define structures for the characteristic values. These structures are known as characteristic hierarchies and affect the layout of reports.

For VaR analysis, a standard risk hierarchy is assigned to every hierarchy node in a portfolio hierarchy. The valuation results for a portfolio hierarchy node are displayed according to the risk factors in the risk hierarchy.

Besides being used for reporting, the characteristics are also used as aggregation criteria when the financial transactions are valued.

The functions for maintaining the analysis structure and the views are located in Customizing, whereas risk hierarchies, portfolio hierarchies, and characteristics hierarchies are all defined within the application.