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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An Analysis of Simplified Sourcing on SAP S/4HANA
Learn the differences between the material requirements planning (MRP) source of supply determination in SAP ERP and the simplified sourcing logic introduced in SAP S/4HANA. Key Concept Source of determination is the process of selecting a source of supply. This process can be executed by material requirements planning (MRP) when a replenishment proposal is created....…
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BEx Information Broadcasting in SAP BW 3.5 Puts Users Front and Center
SAP has expanded the feature set in the latest iteration of SAP BW. Included in the new functionality is BEx Information Broadcasting, which provides a variety of ways for users to disseminate information. This introduction to BEx Information Broadcasting and its front-end tool, the BEx Broadcaster, will give you a head start on putting it...…
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A Guide to the Scorecard Options of SAP BusinessObjects Design Studio 1.6
Learn two options for creating scorecards with the new scorecard-visualization component in SAP BusinessObjects Design Studio 1.6. Key Concept Scorecards are a new component in SAP BusinessObjects Design Studio 1.6. As in most dashboarding tools, a scorecard is a pre-packaged way to provide customized graphics tied to how well or badly a company is performing...…
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SAP S/4HANA Finance: What’s in a Name?
SAP S/4HANA Finance has received much attention since it was announced at SapphireNOW in 2014 under the name SAP Simple Finance. In 2015, SAP Simple Finance was renamed to SAP S/4HANA Finance. This article defines the scope of the SAP S/4HANA Finance solution, as well as how the innovations built on SAP HANA fit into...…
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Reporting & Analytics: Case study: Resistance is futile — How Breakthru Beverage delivers SAP HANA model analysis and visualizations to users who insist on Excel
Find out how Breakthru Beverage accommodates the needs of analysts who insist on using Microsoft Excel, while also leveraging its investment in SAP HANA models. RA_2017_Foley_Casestudyresistanceisfutile Desmond Foley If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.... Membership Required You must be a…
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Supplier Collaboration Made Easy in the Aftermarket Industry
Understand how the Service Parts Planning Supply Network Collaboration (SNC) Product Detail user interface (UI) enables information sharing, improves decision making, promotes collaboration, and creates extended supply chain visibility in the aftermarket industry. Learn how to implement the SNC Product Detail UI for your organization and restrict the data that can be seen by your...…
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Visual Composer 7.0’s BI Extension Kit Offers New Data Modeling Capabilities
Understand what’s new in Visual Composer 7.0. The BI Extension Kit, part of Visual Composer, includes many new design-time and run-time features that allow functional consultants to create analytical applications without coding. Key Concept Visual Composer is a model-driven development tool that allows business experts to create and adapt analytical and free-styled applications without writing...…
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UDConnect in SAP BW 3.5 Enhances Native Data Acquisition
The SAP BW ETL services layer in BW 3.5 features UDConnect, which allows users to extract data from a variety of sources. The authors introduce this new functionality and examine its advantages. They also provide an example of a common use scenario. Since the launch of SAP BW, users have demanded the ability to...…
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Leveraging Smart Grid and AMI Using SAP Application Suites
Discover how to administer and use smart grid, advanced metering infrastructure, and smart meters to improve consumer experience and optimize associated energy and operational costs. Gain an understanding of the fundamentals, application, and impact of these emerging technologies and how the SAP Business Suite helps deploy and leverage the value they provide. Key Concept Smart...…
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How Rights Inventory Management Works in SAP IPM
See how an SAP system handles the media industry’s need to manage intellectual property and to avoid the conflicts that can arise when an intangible product is licensed in multiple ways. Key Concept SAP Intellectual Property Management (SAP IPM) is part of the industry-specific offering SAP for Media. It sits on top of SAP CRM....…
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