SAP Risk Management
Risk Management that Makes Sense and adds Value
SAP Risk Management
The success of an organization is no longer measured simply in short-term profitability. Stakeholders now want to know that businesses in which they are involved are making responsible decisions, are healthy in every aspect, and that they are resilient and compliant
Risk management measures that are taken to meet this demand can often be frustrating for senior managers who feel distracted from doing their day-to-day work. Often the plans and their execution are ineffective and unstructured
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. For example, for an airline the customer experience may be a crucial value driver. For a utility company, reliability is key. For oil and gas, it’s proved reserves or refinery capacity
Effective risk management starts with your value drivers
The SAP Risk Management application can help you to integrate and coordinate risk management activities, gain a deeper understanding of risk, and plan timely, reliable responses. You’ll have reliable, accurate information so that you can make better decisions about risks and opportunities and ultimately improve and sustain your profitability. You’ll be able to see and assess current and future risks, link them to business value drivers, and preserve and build on that value.
Effective risk management starts with your value drivers
What drives the value of the business?
This where risk management starts
How is that value created or eroded?
Risk management will provide insights here
What are the emerging risks and opportunities?
Risk management must look at the horizon as well as the pas
Focus your business on what it does best
SAP Risk Management lets you focus your risk management
SAP Risk Management lets you focus your risk management efforts on the fundamental processes and activities that are most important to your business by aligning value drivers, critical activities, and high-impact risks. It also fees you up to concentrate on your core business activities.You can prioritize risks according to their impact on your defined drivers and build risk catalogs for all risk categories, related drivers, key risk indicators (KRIs), and industry-specific content.
You can create reliable insights into value creation and losses, see what factors drive risk levels, judge how risks impact business value, and consider how you are responding to them. Residual risk reflects the effectiveness of controls and policies implemented.
Visualization shows risk event causes and effects and gives a horizontal view of the anatomy of risk: where it is coming from, what is driving it, and where it is going in a 360-degree risk management and comprehensive risk insight
The business benefits are clear to see
Greater Insight, Efficiency, and Flexibility
SAP Risk Management is part of SAP solutions for governance, risk, and compliance (SAP solutions for GRC). These solutions provide a preventive, real-time approach to these issues, providing complete insight into risk and compliance initiatives, enabling resources to be used more effectively, and helping a faster response to changing business conditions.
Deeper insight
A common approach to risk and compliance provides deeper insights. By continuously monitoring your initiatives, you can better understand business conditions and manage risks to improve decisions
Greater efficiency
It supports the documentation and implementation of automated controls for any framework, reducing cost and allowing effective se of resources by automating risk and compliance activities
Improved flexibility
Working together, SAP solutions for GRC give you a continuous approach throughout your organization. Performance indicators across fragmented control environments are aggregated to deliver a common, system-wide view and unify management of strategic, financial, operational, and compliance-related risks.
SAP Risk Management can help you integrate and coordinate risk management, gain a deeper understanding of risk, and plan timely.
Quick Facts for SAP Risk Management
Gain a deeper understanding of risk, and plan timely, reliable responses. It provides accurate information to help you make better decisions and ultimately improve profitability. You can also see and assess current and future risks, link them to business value drivers, and preserve and build value
Objectives
- To establish a formal enterprise risk management framework across the business
- To adopt predictive indicators and continuous monitoring to identify and manage risks
- To foster collaboration between departments and offices
- To standardize risk management practices and tools across the business and the 3 Lines of Defense
Solution
- State-of-the-art business risk application, and Preserves and adds value
- Manages critical business value drivers
- Sets new standards for long-term success and Encourages continuous improvement and risk accountability
- Provides a framework for risk management through the enterprise
- Is the cornerstone of integrated 3 Lines of Defense
Benefits
- Reduces unplanned losses
- Drives down cost and increases effectiveness of mitigation
- Rapid response to new opportunities
- Greater insight, efficiency, flexibility, Deeper insight, Greater efficiency and Improves flexibility