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?

According to Investopedia, risk analysis can be divided between two types: qualitative and quantitative.

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.

Tackle Changes to Inventory, Cash Flow, and Benefit Regulations with SAP ERP

Published: 30/December/2009

Reading time: 14 mins

Review some accounting standard changes, including changes to foreign exchange rates, inventory, and benefits, and see how the SAP ERP system can address them. Key Concept The driver of International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) is the need to bring uniformity and consistency to accounting practices and reporting across the globe....…
Thread Dump Analysis — Are Your Applications Hanging by a Thread?

Published: 29/June/2009

Reading time: 9 mins

ManagerLearn how you can use a Thread Dump Analysis in SAP Solution Manager to identify performance problems in the Java stack and isolate the problem to a specific Java package or application. Key Concept An important part of performance tuning on the Java stack is to create and perform a Thread Dump Analysis. Thread Dump...…
Find Table Fields When All Else Fails

Published: 15/February/2008

Reading time: 8 mins

Learn a failsafe method for finding table and field names using Runtime Analysis with transaction SE30. The method is particularly useful when you need to view or download information directly in SAP tables. First determine the table and field names with Runtime Analysis, and then view them with the Data Browser with transaction SE16N. Key...…
SAP BusinessObjects Analysis, OLAP Edition – Your First Steps

Published: 28/February/2011

Reading time: 11 mins

Learn how to perform your first steps with SAP BusinessObjects Analysis, OLAP Edition in combination with your SAP NetWeaver BW landscape. Key Concept SAP BusinessObjects Analysis, OLAP Edition is the successor to SAP BusinessExplorer (BEx) Web reporting. It provides you with the functionality to provide your business analysts and power users with a multi-dimensional analytical...…
- SAP BW
How to Use BICS to Connect SAP BusinessObjects Client Tools to SAP BW (Part 2)

Published: 07/November/2016

Reading time: 12 mins

Learn step-by-step instructions for how to create a Business Intelligence Consumer Services (BICS) connection and then use it to connect three BusinessObjects reporting tools: Web Intelligence, Design Studio, and BusinessObjects Analysis, edition for Microsoft Office, to an SAP BW BEx Query. Key Concept A Universe is the Semantic Layer that resides between the database and...…
- SAP Business Data Cloud
SAP Completes Strong Q2, Eyes APJ Expansion with Alibaba Partnership

Published: 24/July/2025

Reading time: 6 mins

SAP reported strong Q2 2025 earnings with cloud revenue up 24% to €5.1 billion, bolstered by a strategic partnership with Alibaba to enhance growth in the Asia-Pacific region and the impact of AI on revenue, while completing a major restructuring that involved 10,000 employees.
- SAP S/4HANA
Commodity Risk Management

Published: 25/March/2020

Reading time: 8 mins

Due to the volatile nature of commodity prices, many businesses in the manufacturing industry find it difficult to align operating and profit margins, and are often faced with uncertainty and risk at every step of the buying and selling process. By demonstrating how uncertainty in this niche sector impacts different industries, the author of this…
Plan for Risks and Recovery in Sybase Mobile Sales for SAP CRM

Published: 02/November/2010

Reading time: 13 mins

/MobileFind out how to identify assets, assess risks, mitigate residual risks, and implement backup and recovery options for Sybase Mobile Sales for SAP CRM. Key Concept Sybase Mobile Sales for SAP CRM offers a range of features for a mobile sales, service, or marketing professional. Sybase uses SAP NetWeaver technology for integration with mobile applications....…
- SAP S/4HANA
SAP ECC End of Life 2027: Your Step-by-Step Migration Roadmap to S/4HANA

Reading time: 8 mins

Relying on legacy systems to carry out different business processes is a common practice. Whether it’s a large enterprise with a vast consumer base or a startup targeting local audiences, most enterprise-level applications still depend on outdated systems. One such example is SAP ECC (SAP ERP Central Component), a once-renowned software for businesses of all…
Improve Your Customer Profitability Analysis with mySAP CRM, BW, and CO-PA

Published: 15/November/2005

Reading time: 30 mins

Use mySAP CRM, SAP Business Information Warehouse (BW), and R/3 Profitability Analysis (CO-PA) functionalities to track your organization’s profitability. BW’s analytic capabilities can collectively analyze the CRM costs associated with business activities that serve your customers and the back-end revenues and costs from CO-PA. Key Concept The primary goal of the Profitability Analysis (CO-PA) module...…