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
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Due Diligence in M&A Transaction: How SAP Helps Mitigate Risks
Due diligence is a key step during mergers and acquisitions (M&A). SAP offers four tools (SAP BusinessObjects Watchlist Security; SAP BusinessObjects Governance, Risk, and Compliance solutions; SAP BusinessObjects Access Control; and SAP StreamWork) to help you mitigate risk during the M&A transaction. Key Concept A merger and acquisition (M&A) process is intense and complex spanning...…
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SAP Access Control Implementation: The Myth, Truth, and Tricks (Part 2)
Correct certain assumptions about the SAP Access Control system that are not necessarily true and obtain guidance on how to meet specific complex business requirements during an implementation project, including maintenance and support activities.
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Start Your Segregation of Duties Risk Mitigation Smart — at the Single Role Level
Discover key tools and process steps that assist in the remediation of risks identified at the single role level by SAP BusinessObjects Access Control Risk Analysis and Remediation. Key Concept Risk Analysis and Remediation (RAR) is part of SAP BusinessObjects Access Control. This capability helps all key stakeholders work in a collaborative manner to achieve...…
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Creating Solution Documentation Assistant Check Step Rules Using an SAP Solution Manager Project
Learn how to use a Solution Manager implementation project to create transaction analysis rules for your analysis projects. This process saves time compared with creating individual rules in the rules database. Key Concept An analysis project contains the rules that guide the Solution Documentation Assistant (SDA) while analyzing a managed system in the solution landscape....…
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Enterprise Role Management — The Way to Compliant Role Design
Enterprise Role Management helps streamline your role design process with a pre-defined, customizable design methodology that guides you through role definition, authorization maintenance, risk analysis, role approval, and role generation in your SAP back-end systems. It also ensures Sarbanes-Oxley compliance of your roles. Key Concept Enterprise Role Management is a capability of SAP BusinessObjects Access...…
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Give Your Procure-to-Pay the Next Power of Analytics with SAP Spend Performance Management Solutions
BIFinancialsGet an overview of the SAP Spend Performance Management solution and learn about the business case for implementing it. Learn the details about the features of Spend Performance Management. Using a case study example, gain an understanding of Spend Performance Management implementations and lessons learned. Key Concept SAP Spend Performance Management is an SAP BusinessObjects...…
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An Introduction to SAP Predictive Analytics 2.0 and SAP HANA Predictive Tools
In this exclusive report by Hillary Bliss, take a walk into the world of the SAP suite of predictive tools with an in-depth tour of the new SAP Predictive Analytics 2.0 and how it ties into SAP HANA and SAP Lumira. Learn the importance of general predictive modeling concepts, and then apply those concepts as...…
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Mitigate Residual Risks When Using SAP’s Green Software Solutions
Learn how to mitigate residual risks of carbon emissions when using SAP’s green software solutions. Find out more about SAP Carbon Impact on-demand service, how to visualize and compare carbon footprint data with dashboards, and how to mitigate sustainability residual risks. Key Concept Residual risks of carbon emissions are the remaining risks after sustainability controls...…
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Analyze the Impact of SAP Software Changes on Your Business Processes
ManagerSee how to achieve a risk-based test scope identification using Business Process Change Analyzer in SAP Solution Manager 7.0 EhP1 (Enterprise Edition). It allows you to analyze the impact of software changes triggered by SAP Support Packages, customizing changes, or custom code development on your important business processes. Key Concept Business Process Change Analyzer provides...…
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SAP BusinessObjects Analysis, OLAP Edition — BEx and Voyager Combined
Find out how you can use the newly released SAP BusinessObjects Analysis, OLAP Edition as part of your overall SAP BusinessObjects 4.0 release. SAP BusinessObjects Analysis, OLAP Edition is the counterpart for SAP BusinessObjects Analysis, edition for Microsoft Office for Web-based deployments. Key Concept SAP BusinessObjects Analysis, OLAP Edition is the successor to SAP BusinessObjects...…
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