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.
1273 results
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What Every BW/BI Developer Needs to Know About ABAP in BW
Over time every BW developer needs to write ABAP in SAP NetWeaver BW to be able to meet user requirements. ABAP might be required in a start routine, end routine, expert routine, InfoPackage, Data Transfer Process, Analysis Process Designer, query, or field. Get basic knowledge on how to write ABAP code and the differences between...…
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Accelerate Operational Reporting with SAP HANA Live: FI Focus
Learn about SAP HANA Live and the SAP HANA-based virtual data model. It enables fast reporting on FI directly from an SAP ERP system running on the SAP HANA database. Key Concept SAP HANA Live provides a Web user interface (UI) and underlying virtual data models for easy access to SAP ERP data without using...…
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An Introduction to HANA Live for Logistics Operational Reporting
Companies running SAP ERP Central Component (SAP ECC) or other Business Suite applications on SAP HANA can use HANA Live virtual data models for BusinessObjects-based operational reporting without SAP NetWeaver Business Warehouse (SAP NetWeaver BW). In addition, you can analyze data based on Advanced Planning and Optimization (APO) data to provide a full logistics picture...…
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Leveraging Customer Attributes to Manage Work
D. Russell Sloan shows how to use customer attributes to add metadata to key project objects. This enables tracking and management of project work such as identifying teams that are responsible for or use transaction, configuration, and development objects. Key Concept The customer attributes feature requires a Solution Manager 7.0 Support Package 1 or higher...…
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Create Statistics Lists in SAP Query for a Summarized Analysis of Your HR Data
Follow these steps to create a statistics list using SAP Query in SAP HR. You can use a statistics list to summarize data and create totals and averages. Key Concept You can create three types of reports with the SAP Query tool: basic lists, statistics lists, and ranked lists. The most common type of SAP...…
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How to Release a Marked Standard Cost Estimate in the Middle of the Month
Generally, you can release a cost estimate in the beginning of the month when no inventory movement has been completed. However, in some cases, such as when issues in price or in logistics master data arise, you may have to release the cost estimate in the middle of the month. In a standard SAP system,...…
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Using SAP Lumira Desktop in Combination with SAP BW Queries
With the latest release of SAP Lumira Desktop, you can now connect directly from SAP Lumira Desktop to your SAP BW system using BEx Query connectivity. Learn the steps required to connect to SAP BW using this new option and see how your existing metadata is supported by SAP Lumira. Key Concept Until recently, SAP...…
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Yes, You Can Use Top-Down Distribution with Account-Based CO-PA
Discover how to use the top-down distribution functionality in account-based profitability analysis (CO-PA) so that you can review reports on a more granular level — for example by customer, product, sales region, and so on. This is particularly useful where the original posting cannot be made at that level of detail. With this functionality, you...…
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Integrate Multiple ERP Systems to Build Interactive Geographical Dashboards in SAP Lumira
Rakesh Kalahasthi explains how to overcome a limitation in developing geographical charts in SAP Lumira by pulling data from SAP Business Warehouse (SAP BW) powered by SAP HANA. Key Concept All InfoCubes and DataStore objects (DSOs) can be accessed in SAP HANA as native SAP HANA models by importing them into the SAP HANA database...…
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Case Study of a Project to Integrate Concur and an SAP System
Learn how to integrate Concur’s travel management solution, which is now a part of SAP, with your SAP system. See how to replace the conventional travel management (claim management) solution with Concur and the best practices to follow during the implementation. Key Concept Concur is a travel and expense management solution you can integrate with...…
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