4.3 Mandatory Dimension Configuration

The application requires some dimensions to be selected mandatorily for downstream calculations. These include currency, organization structure, and standard product. The parameters selected as part of this field are displayed in the BAU window under the Dimension browser.

The Mandatory Dimension Configuration section has the following fields:

Figure 4-3 Mandatory Dimension Configuration


The image displays the configuration screen for selecting mandatory dimensions like currency, organization structure, and product, which are essential for liquidity risk calculations.

  • Currency

    For Currency, only one hierarchy is present. LRM - Currency is automatically selected in the Currency field.

  • Customer

    To identify the intercompany cash flows, customer dimension is mandatory. However, there is no hierarchy selection required.

  • Organization Structure

    For Organization Structure, there are multiple selections available. Select from the available options:

  • LRM – Legal Entity: This is a BI Hierarchy where all the legal entities appear in a single level.
  • LRM – Legal Entity – Parent Child: This is a parent-child hierarchy where the legal entities are displayed in ascending/descending order of their parentage. The root being Business Holding Unit (BHU).
  • LRM – Org Structure Country Flag: This is a Non-BI Hierarchy used in 4Greporting line reclassification. Ignore this hierarchy in this selection.

    For example, if the LRM – Legal Entity is selected for Organization Structure, in the Application Preferences, the selected Organization Structure (LRM – Legal Entity) along with the aggregation dimension members appear under the Dimension Selection section in the BAU window.

    Figure 4-4 Dimension Selection


    The image shows the Dimension Selection interface, listing the mandatory and aggregation dimensions available for defining business assumptions in liquidity risk processing.

  • Netting Agreement Flag

    This dimension identifies whether the derivative contract is part of the netting agreement. Based on this flag, the net derivative cash inflow or outflows are determined. Hierarchy selection is not required for this dimension.

  • Non-Contractual Obligation Type

    This dimension identifies the non-contractual obligations part of the LRM Instrument table.

  • Product
    For Product, there following two hierarchies are present as ready-to-use:
    • LRM – Product : This is a single level hierarchy that lists all the products at the lowest level. This is the default selection.
    • LRM – Product Balance Sheet Category : This is a five-level hierarchy describing the higher levels of the products.
  • Standard Product

    For Standard Product, only one hierarchy is present. LRM – Standard Product Type is automatically selected in the Standard Product field.

The mandatory dimensions selected as part of this section appear in the dimension browser to support liquidity risk calculations.