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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Issue Certificates of Origin by Using Preference Processing Functionality in SAP BusinessObjects Global Trade Services 8.0
Learn how SAP BusinessObjects Global Trade Services issues certificates of origin or vendor declarations for claiming reduced customs duties on your products subject to North American Free Trade Agreement (NAFTA) or European Union (EU) trade regulations. See how the enhanced archiving capabilities for preference determination are used for audits. Also, learn what preference processing configuration...…
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How Shared Services Can Assist Finance Processes
Learn the software tools that can support shared service operating models. Identify which finance business processes could be redeployed or redesigned to work more effectively in a shared services environment, as supported by the SAP Shared Service Framework for Finance. Key Concept The shared service model enables companies to be efficient, transparent, and agile. Because...…
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Spotlight: Ensure Security During an Implementation of an SAP Application
/Project Management/MobileBill Oliver, founding partner at Winterhawk Consulting, answers questions on how to ensure that SAP applications remain secure during an implementation. To learn more about challenges security teams face during implementations of SAP applications, I had Bill Oliver, founding partner at Winterhawk Consulting, answer a series of questions about his experience implementing SAP applications...…
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How to Set Up and Implement User Defaults in SAP Access Control 10.0
Learn how to configure user defaults functionality in SAP Access Control 10.0 to drive automatic assignment of values to user master data based on specific request attributes. Key Concept A user defaults business rule can be used to define the default entries automatically maintained for a user master record based on defined attributes and conditions...…
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Workforce Planning 101: Tips for Starting Your Workforce Planning Journey
Learn how to take the (sometimes daunting) plunge into implementing strategic workforce planning. Learn more about the details and where to begin the process. Gain tips and guidance on starting the journey and moving up the maturity curve in building a repeatable, sustainable, and strategic process. Key Concept Workforce planning is the process that guides...…
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How to Enable Logistics and Manufacturing Execution with SAP Extended Warehouse Management Kanban Replenishment
Learn how to execute multi-level manufacturing production orders through component replenishment driven by SAP Extended Warehouse Management (SAP EWM). Understand the overall concept, implementation best practices, and configuration steps involved. Key Concept SAP ERP Central Component (ECC) has provided Kanban functionality for many years. With this functionality, operators on factory floor’s manufacturing lines obtain component...…
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The Invoker Servlet: A Practical Case for Protecting Your SAP Systems from Vulnerabilities
Learn the steps to take to close the security gap potentially opened in SAP systems by the Invoker Servlet vulnerability. Key Concept On May 11, 2016, the Department of Homeland Security (DHS) issued the first-ever United States Computer Emergency Readiness Team (US-CERT) Alert (TA16-132A) for SAP applications. This CERT Alert was issued due to multiple...…
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Case Study: How We Successfully Upgraded to SAP ERP Enhancement Package 7
The United Nations (UN) Common System Compensation Package was revised following the UN General Assembly decision on December 2015. To achieve this, the International Civil Service Commission (ICSC), in cooperation with SAP, developed the Entitlement Validation Engine (EVE) to be implemented for all UN organizations, by the first of January 2017. On the SAP ERP...…
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ChaRM Changes in Solution Manager 7.2: How to Transition Your Existing ChaRM Configuration Risk Free
Learn how the new Solution Documentation in SAP Solution Manager 7.2 affects the configuration and administration of Change Request Management (ChaRM) and what to address when upgrading existing ChaRM functionality. Key Concept Change Request Management (ChaRM) with SAP Solution Manager requires several major changes to remain active after the upgrade to version 7.2. Some of...…
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Adoption Methods for SAP S/4HANA Finance for Cash Management
Various organizations have started their assessment journeys to embrace SAP S/4HANA and are curious to know the options for implementing various functionalities. Cash management is one such area. In recent SAP S/4HANA Finance versions SAP has made classical cash management obsolete and has come up with new functionality called SAP S/4HANA Finance for cash management....…
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