SAP Risk Analysis
What Is Risk Analysis?
Risk analysis is the assessment of potential risks on the business or market and the likelihood of adverse effects from those events. In a supply chain context, for example, companies model various disruptions to determine their impact and apply risk mitigation strategies to avoid them.
According to Investopedia, risk analysis can be divided between two types: qualitative and quantitative.
Qualitative analysis: Qualitative analysis incorporates a definition of uncertainties, evaluation of the potential impacts, and risk mitigation measures. Examples include SWOT analysis and cause and effect diagrams.
Quantitative analysis: Quantitative analysis relies on statistical modeling and assigning numeric values to potential risks. Within a risk model, those values produce graphical outputs to help determine risk mitigation strategies.
Through both risk analysis approaches, companies can glean an holistic view of their risk profile.
What Is Risk Analysis?
Risk analysis is the assessment of potential risks on the business or market and the likelihood of adverse effects from those events. In a supply chain context, for example, companies model various disruptions to determine their impact and apply risk mitigation strategies to avoid them.
According to Investopedia, risk analysis can be divided between two types: qualitative and quantitative.
Qualitative analysis: Qualitative analysis incorporates a definition of uncertainties, evaluation of the potential impacts, and risk mitigation measures. Examples include SWOT analysis and cause and effect diagrams.
Quantitative analysis: Quantitative analysis relies on statistical modeling and assigning numeric values to potential risks. Within a risk model, those values produce graphical outputs to help determine risk mitigation strategies.
Through both risk analysis approaches, companies can glean an holistic view of their risk profile.
SAP and Risk Management
As more companies migrate to SAP S/4HANA, it’s critical that their risk strategies are integrated within the system. SAP provides risk management solutions that put governance, risk, and compliance at the forefront of business activities.
According to SAP, “stakeholders want to see evidence, on demand and in real time, that an organization which they are backing is managing their financial, social, and environmental activities efficiently, profitably, and responsibly … Any risk management measures must focus on the specific value drivers unique to the business, and these can be difficult for you to identify. Managers must look beyond financial line items to the activities and processes that are integral to the organization’s business model.”
Further Resources for SAPinsiders
Building More Effective Access Control Through Business-Centric GRC. In this article, learn how companies are utilizing access control solutions to identify risk within their user base. These solutions and processes are often technical and driven from audit and IT perspectives with very little input from business users who might find the technical GRC language hard to decipher. That’s where the idea of business-centric GRC comes into play for access control — providing the business with easier to understand, less technical language so that they can better interpret the data.
Application Security Imperiled by Attackers. Application security is being threatened by cyberattacks on the application layer, such as SAP S/4HANA systems, which target valuable resources organizations store there. In this article, learn about new security concepts necessary to protect the “crown jewels” stored in SAP systems. Companies need to deploy real-time detection and response to deal with the rise in attacks against the SAP application layer level.
Vendors that can help SAP customers with risk analysis include: Appsian Security, DXC Technology, EcoVadis, and Onapsis.
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Track Intercompany Loans Using SAP’s Transaction Manager Module: Part 2
Learn the configuration steps needed for the intercompany loans process outlined in the article “Track Intercompany Loans Using SAP’s Transaction Manager Module, Part 1.” The configuration is in line with the process described in part 1 of this article. Key Concept When companies reach a more complex size, they often need to implement financing processes...…
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How to Apply Two Advanced Features of BusinessObjects Analysis, Edition for Microsoft Office, to BusinessObjects Design Studio
Learn about the integration between two key SAP BusinessObjects tools: BusinessObjects Analysis, edition for Microsoft Office, and Design Studio. Specifically, two features, calculations and conditional formatting, are not in Design Studio natively, but are enabled when you integrate them with BusinessObjects Analysis, edition for Microsoft Office. Key Concept BusinessObjects Design Studio is positioned as a...…
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Configure SAPSprint for Secure Server-Based Printing on Windows
You can have as wide and varied a range of printing needs as you have business needs. Learn about the available SAPSprint options — what they are and what they do — so you can help your organization meet its specific printing needs. Key Concept Secure Network Communications (SNC) integrates an external security product with...…
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Better Manage Enterprise Risk and Streamline Audit Lifecycle Management with SAP Audit Management (Part 1)
See how SAP Audit Management can help improve the different facets of the internal audit lifecycle, including audit planning and preparation while enforcing process control and risk management.
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SAP BusinessObjects Analysis, Edition for Microsoft Office — Your First Steps
Find out how to install and configure SAP BusinessObjects Analysis, edition for Microsoft Office as part of your SAP NetWeaver BW landscape. Then take a look at several workflows in this new application. Key Concept SAP BusinessObjects Analysis, edition for Microsoft Office enables you to use multi-dimensional workflows on top of SAP NetWeaver BW queries...…
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Aggregate Inventory Management in SAP, Part I of II
Organizations strive to achieve high standards in customer service with balanced investment inventory. Material planners, from the plant to managerial to the corporate level, work on managing inventory on a periodic basis to maintain balance between inventory to carry vs. customer satisfaction. The right tools can replace spreadsheets to help organize this information effectively on…
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Examining the Features of Business Role Versioning in SAP Access Control 10.1
Business role versioning is a functionality introduced in SAP Access Control 10.1 that enables you to have an active and a draft version of a business role. After implementing business role versioning, users can edit business roles by adding or removing new roles without affecting the active version of the business role.
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Audit-Ready Your Segregation of Duties Remediation Process with User Remediation in RAR
Discover key tools and process steps to assist in the remediation of risks at the composite role and user level identified by SAP BusinessObjects Access Control Risk Analysis and Remediation. Key Concept The end-game of every segregation of duties review is to have a remediated risk environment. This involves remediating any existing composite roles, which...…
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Integrate Access and Process Controls in the Latest Releases of SAP BusinessObjects Solutions for GRC
SAP BusinessObjects Access Control’s Risk Analysis and Remediation (RAR) capability generates the rule library for segregation of duties and performs the access risk analysis for the user. SAP BusinessObjects Process Control manages the controls for each business process. Integrating the two applications allows you to control both of these functions from SAP BusinessObjects Process Control....…
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Avoid Audit Problems by Building Controls as Part of Your Implementation Life Cycle
/GRCTo have an efficient and effective control design process, certain risk and control activities need to occur during the implementation process. These activities reduce the potential for audit issues and minimize future rework. By following this strategy you significantly increase the likelihood of having a successful implementation and a pain-free audit. Key Concept Controls are...…
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