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.

827 results

  1. Know the Risks and Benefits of 5 Change Validation Options for Interfaces to External Systems

    Reading time: 13 mins

    You can approach the common task of change validation in SAP ERP HCM in a number of different ways. Deciding among the options depends on the task at hand and the user’s experience, level of skill, and personal preference. See the pros and cons of five common options. Key Concept SAP ERP HCM users are...…

  2. 6 Tips for Going Global with Extra Savoir-Faire

    Reading time: 14 mins

    Whether you’re just beginning a global project or are already supporting SAP HR in multiple countries, this advice will help keep your project on the right track. Key Concept A global template is a design document for the footprint of a globally configured SAP HR system normally created by the core global SAP HR configuration...…

  3. Issue Certificates of Origin by Using Preference Processing Functionality in SAP BusinessObjects Global Trade Services 8.0

    Reading time: 12 mins

    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...…

  4. How Shared Services Can Assist Finance Processes

    Reading time: 13 mins

    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...…

  5. Spotlight: Ensure Security During an Implementation of an SAP Application

    Reading time: 8 mins

    /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...…

  6. How to Set Up and Implement User Defaults in SAP Access Control 10.0

    Reading time: 14 mins

    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...…

  7. How to Enable Logistics and Manufacturing Execution with SAP Extended Warehouse Management Kanban Replenishment

    Reading time: 10 mins

    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...…