Control Parameters 

Use

In the Default Risk and Limit System, the default risk rule and the limit product group are derived. If you use integrated financial object maintenance, the system also derives the setting for the “Counterparty/issuer risk active” (SARAKT) indicator. If you are using the country risk functions, the system is also able to derive the CEQ class, LEQ class and the transaction start date for CL country risk (DLRBFG).

The country risk functions are available in Banking only.

You define derivation strategies in Customizing. In the Default Risk and Limit System, a distinction is made between the following derivation strategies:

Types	Customizing (strategy maintenance)
Type 1	...Basic Settings ® Derive Default Risk Control Parameters
Type 2	...Basic Settings ® Automatic Integration of Financial Objects in Transaction Master Data

The system applies the following derivation types depending on the context:

·       Non-Integrated Financial Object Maintenance

Type 1 derivation is used. If financial object integration is set to active, no derivation occurs for the active object categories.

·       External Data Transfer

Type 1 derivation is used if financial objects are transferred. However, instead of transferring financial objects by EDT, you can generate them by using a generation report. In this case Type 2 derivation is used. You can use generation reports for loans, class positions in securities accounts, and money market, foreign exchange, and derivative transactions. You find generation reports by choosing... ® Tools ® Reorganization Tools ® Financial Object ® Financial Object Integration. In the same way...® Tools ® Reorganization Tools you can also find reports for changing financial object data.

·       Automatic Financial Object Integration

Type 2 derivation is used.

·       Mass Processing of Financial Objects

¡      Type 1 derivation is used.

You access mass processing of financial objects using Type 1 derivation in SEM Banking by choosing ® Tools ® Reorganization Tools ® Financial Object® Non-Integrated Processing of Financial Objects ® Process Financial Objects (Counterparty/Issuer Risk) or Process Financial Object (Country Risk); and in CFM by choosing Tools ® Reorganization Tools ® Financial Object ® Maintain Financial Objects ® Edit Financial Objects.In the selection screen, those transactions are hidden for which financial object integration is set to active. By choosing Selection using FO Numbers, you can use Type 1 derivation for all transactions.

¡      Type 2 derivation is used.

You access mass processing of financial objects using Type 2 derivation by choosing® Tools ® Reorganization Tools ® Financial Object ® Financial Object Integration.

Prerequisites

To be able to define derivation strategies you need authorization object J_B_KLCUS1. This is contained in authorization profile F_T_FTLM_ALL, which in turn belongs to profile J_B_ISB_ALL.

Integration

If the derivation strategy is activated, the control parameters for TR-TM transactions, BCA accounts and variable transactions are derived by means of the strategy only. Derivation using the derivation strategy takes place in external data transfer (Type 1), manual creation of the financial object (Type 1) and integrated financial object maintenance (Type 2).

For a detailed description of the derivation tool, refer to the documentation of the CO-PA (Profitability Analysis) component: Derivation Types.