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.
1274 results
-
Comprehensive Identity and Access Management in the Cloud
Digital technologies are transforming enterprise system landscapes, bringing with them a range of security issues businesses must address — particularly when it comes to managing user identities and access to business solutions. To address these challenges, businesses require a comprehensive, unified, centralized approach to identity management and access governance. This article introduces SAP Cloud Identity…
-
Test Scope Optimization for Large SAP Change Events Using BPCA of SAP Solution Manager 7.1
ManagerCompanies deploying SAP Support Package Stacks or SAP enhancement packages to their SAP solutions need to perform regression tests for their business processes. In general a lot of effort goes into setting up and performing the necessary regression tests. See how you can facilitate this testing process using the Business Process Change Analyzer (BPCA) of...…
-
Uncover Hidden Trends in Historical Data with Analysis Process Designer
Go beyond data warehousing to data mining. You can use Analysis Process Designer (APD) to discover hard-to-find trends that allow your company to make more informed decisions. Learn what APD is, how it differs from data warehousing, and how to implement it. Key Concept Analysis Process Designer (APD) explores the data that SAP BW collects,...…
-
How to Setup Demand Planning in SAP Advanced Planning and Optimization
SAP Advanced Planning and Optimization, demand planning allows a business to perform forecasting of their materials while considering all the factors that affect the demand. Demand planning is periodic and contains multi-step processes such as data gathering, statistical analysis, reviewing market intelligence reports, and performing adjustments against budgeted forecast to drive material requirements planning. SAP…
-
How to Transfer Material Ledger Detailed Actual Costing Results to CO-PA
Learn how to configure the transfer of a material ledger total actual cost, actual cost components split, and production quantities in multiple units of measure to Profitability Analysis (CO-PA). Key Concept Activation of actual costing is not a common practice. Typically, there are two main reasons to implement actual costing: a legal imperative to valuate...…
-
Exploring SAP Solution Manager Solution Documentation Assistant
Solution Manager has a Solution Documentation Assistant (SDA) that helps create and maintain solution documentation containing both technical and process information. The information is based on how the solution is actually being used by the enterprise. Explore this functionality to discover some of its more advanced capabilities. Key Concept The Solution Documentation Assistant (SDA) is...…
-
Spotlight: Internal Audit and Risk Assessment Strategies
FinancialsAn SAP executive answers a few questions about internal auditing and risk assessment in today’s enterprise business environment. Key Concept Emerging risks, according to Institute of Internal Auditors President Richard Chambers, are “newly developing risks that cannot yet be fully assessed but that could, in the near future, affect the viability of our organizations’ strategies...…
-
5 Pillars for Addressing Cybersecurity and Data Protection: SAP Highlights Key Areas for Organizations to Focus on to Build Digital Trust with Employees and Customers
by Bruce Romney, Senior Director of Product Marketing, GRC and Security Solutions, SAP and Erin Hughes, SAP S/4HANA Finance and Governance, Risk, and Compliance (GRC) Center of Excellence, SAP North America and Thomas Frénéhard, Global Finance and Risk Center of Excellence, SAP What are today’s business leaders most focused on and what are their top…
-
Premium
How Hershey Managed Risk During an SAP S/4HANA Implementation
Mitigate risks during your SAP S/4HANA implementation. The larger and more complex an enterprise’s SAP landscape is, the more potential pain points the business will need to watch for. The Hershey Company need an SAP S/4HANA implementation strategy that would work effectively across 100 brands and 80 countries where it operates. Hershey adopted a five-step…
-
Simplify Traceability Analysis with the Batch Information Cockpit in ECC 6.0
Learn how to use the SAP Batch Information Cockpit (BIC) to perform top-down and bottom-up batch traceability. The BIC offers a number of functionalities to end users that can be used without opening multiple sessions. Key Concept The SAP Batch Information Cockpit (BIC) provides a central tool to analyze all the batch use within a...…
Related Vendors
Your request has been successfully sent