KLABL_DE - Derivation of DRR for Derivative

SAP Transaction Code - Details

• Transaction Code: KLABL_DE

  Description: Derivation of DRR for Derivative

  Release: S/4HANA and ECC 6

• • Program: RKLDERIFO

    Screen: 1000

    Authorization Object:

  • Development Package: FTBKC

    Package Description: Risk Management: Counterparty/Issuer Risk Customizing

    Parent Package: FS_SEM_TRMAN

  • Module/Component: FIN-FSCM-TRM-CR

    Description: Credit Risk Analyzer

AnswerBot

• SAP Tcode: KLABL_DE - Derivation of DRR for Derivative

   Instruments
  
  Overview:: 
  KLABL_DE is a SAP transaction code used to derive the DRR (Derivative Risk Reserve) for derivative instruments. This transaction code is used to calculate the DRR for derivatives that are held in the company’s portfolio. 
  
  Functionality:: 
  KLABL_DE is used to calculate the DRR for derivatives held in the company’s portfolio. The DRR is calculated based on the risk profile of the derivative instrument and its associated risk factors. The DRR is then used to determine the amount of capital that must be set aside to cover potential losses from the derivative instrument. 
  
  Step-by-step How to Use:: 
  1. Enter the transaction code KLABL_DE into the SAP system. 
  2. Enter the details of the derivative instrument, such as its type, maturity date, and underlying asset. 
  3. Enter the risk factors associated with the derivative instrument, such as volatility, liquidity, and credit risk. 
  4. The system will then calculate the DRR for the derivative instrument based on these inputs. 
  5. The DRR will be displayed on screen and can be used to determine how much capital must be set aside to cover potential losses from this derivative instrument. 
  
  Other Recommendations:: 
  It is important to ensure that all relevant risk factors are taken into account when calculating the DRR for a derivative instrument. Additionally, it is important to regularly review and update the DRR calculation as market conditions change over time.