SAP Risk Management

What is SAP Risk Management?

Risk management for a business isn’t just about identifying and eliminating areas of risk. For many organizations, it’s also about making decisions on acceptable levels of risk and establishing hierarchies of risk — what needs to be immediately dealt with and what can wait. Keeping track of all organizational risk in a centralized way makes it easier for companies to analyze risk impacts — this type of centralization is often enabled by technology. SAP Risk Management is one risk management tool within the SAP Governance, Risk, and Compliance (GRC) suite that supports risk identification, assessment, analysis, and monitoring.

What is SAP Risk Management?

Risk management for a business isn’t just about identifying and eliminating areas of risk. For many organizations, it’s also about making decisions on acceptable levels of risk and establishing hierarchies of risk — what needs to be immediately dealt with and what can wait. Keeping track of all organizational risk in a centralized way makes it easier for companies to analyze risk impacts — this type of centralization is often enabled by technology. SAP Risk Management is one risk management tool within the SAP Governance, Risk, and Compliance (GRC) suite that supports risk identification, assessment, analysis, and monitoring.

Risk management tools like SAP Risk Management often provide better visibility into organizational risk and bring together various types of risk into a single place for monitoring. Risk management solutions may include the following features, among others:

• Risk strategy and planning
• Risk identification
• Risk analysis
• Risk monitoring
• Dashboards and graphical views
• Real-time and automated risk monitoring
• Guided workflows to enforce governance rules

There are many sources of risk in an organization, and some vendors provide solutions to address various risk elements. For example, Appsian Security offers tools that bolster risk monitoring around financial transactions. Fastpath offers risk management solutions that focus on multiple areas of risk, including segregation of duties, regulatory compliance, and access risk. RSM’s toolset provides process automation around risk management.

Key Considerations for SAPinsiders:

• Risk events are rising, compounding the need for better risk monitoring and anticipation. Legacy tools and business models don’t typically offer the capabilities needed to properly manage risk in a centralized place. To fix this, companies are now including risk management as part of their digital transformation activities, implementing intelligent technologies and robotic process automation to help improve risk management and other GRC functions.
• GRC teams are stretched, according to our latest research on the state of the GRC market. The most successful organizations are taking pressure off GRC professionals with automation. You should look to automate risk management wherever possible — it’s best for repeatable processes. Risk management tools that automate risk monitoring and reporting reduce manual labor for GRC staff and free them up to do more strategy and planning.
• You can improve risk strategy and decision making across the entire company, from operations through audit, with risk-aware, risk-adjusted management. You should work toward this goal with strategies such as risk training for line-of-business users and by creating an interdisciplinary risk management committee.