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
-
How to Use SAP HANA’s Analytics and Text Analysis Capabilities
See how to apply the SAP HANA analytics and text analysis feature on raw data to solve critical problems. Learn how to use text analytics to gain insight into content-specific values, such as emotions, sentiments, and relevance. Key Concept SAP HANA provides a single platform to extract and analyze massive amounts of structured and unstructured...…
-
Internal Controls: The Journey from Compliance to Risk Management
See how to make compliance more operational with a more preventative, integrated approach that emphasizes risk management over compliance. By embedding more controls into this approach, your organization achieves greater efficiency and lower compliance testing costs than in the more manual report and review model that many companies use. Key Concept The Sarbanes-Oxley Act prompted...…
-
Aggregate Inventory Management in SAP, Part II of II
by Venkata Ramana Nethi CSCP, CPIM.; Business Process Lead – Operations, Schlumberger Organizational inventory policy drives the threshold values and guidelines on how individual material should be managed in manufacturing or procurement processes. Putting the right information in the hands of the right people at the right time can save millions of dollars for companies.…
-
Integrated Security Solutions to Mitigate Risks on All Fronts
The new digital economy brings an unprecedented flow of data into the enterprise, which in turn leads to an unprecedented governance, risk, and compliance (GRC) challenge. As organizations struggle to sort through this data, cybercriminals are working just as hard to steal it. In order to stay secure, businesses need integrated GRC solutions that not…
-
Spotlight: The Four I’s of the Internal Audit Process
How an organization’s internal audit team assesses risk is a key concern of organizations, as evidenced by survey findings and reports by accounting industry groups. Steve Biskie, Managing Director at High Water Advisors, comments on this hot topic. The role that internal auditors have with regard to risk has come under scrutiny after several surveys...…
-
Create an Access Request and Fix SoD Violations More Easily with SAP Access Control 10.1
Neha Garg and Shilpa Viswanadha show how to configure different services for using the simplified access request and remediation view in SAP Access Control 10.1 and the advantages of using these two new features. Key Concept Simplified access request with an advanced role search is a new feature in SAP Access Control 10.1. It allows...…
-
A Guide to End-to-End Root Cause Analysis
ManagerLearn how to set up and use SAP Solution Manager Root Cause Analysis and Wily Introscope Enterprise Manager. Key Concept End-to-End Root Cause Analysis offers systematic analysis and resolution of incidents for a distributed environment. End-to-End (E2E) Root Cause Analysis is part of SAP Solution Manager and uses SAP NetWeaver Business Warehouse (SAP NetWeaver BW)...…
-
How to Use Formula Mode for Complex Analysis
Learn how to use an often-overlooked feature of the Excel-based reporting toolbox: formula mode. Learn why formula mode makes SAP BW’s BEx Analyzer and BusinessObjects Analysis the preferred tools for heavy analysis users. Key Concept Formula mode, a feature in BW’s BEx Analyzer and BusinessObjects Analysis for Excel, takes an SAP BW data stream and...…
-
Premium
Risk Assessment in SAP Against a Cybersecurity Framework
In part two of the three-part series “Becoming CMMC or NIST Compliant and How to Prove It,” SAPinsider expert Julie Hallett demonstrates for readers how they can assess cybersecurity threats against a cybersecurity framework. In order to effectively evaluate all of the cybersecurity threats and vulnerabilities that a company has, they must first apply a…
-
Better Manage Enterprise Risk and Streamline Audit Life Cycle Management with SAP Audit Management (Part 1)
See how SAP Audit Management can help improve the different facets of the internal audit life cycle including audit planning and preparation while enforcing process control and risk management. Key Concept Audit is a process that defines the time, scope, resources, and other attributes for an audit engagement and documents evidence, results, recommendations, and reports....…
Your request has been successfully sent