The Reality of Risk: Part II
by Andrew Sawyer
The focus of this series is managing Organizational Risks:
- how this is supported and structured within SAP Risk Management, which was covered in part one,
- how to drive greater value from the solution,
- and part three will look at maximizing efficiencies in processes and reporting.
Organizational risks can take many forms. Every organization is different with respect to the risks they face and how they choose to monitor and respond them – even within a given industry sector.
Having the appropriate means to identify and document Risk is a core element of any Risk Management strategy.
There is a common misconception about SAP Risk Management as a platform – namely that it should be used for Enterprise Risk Management; however, the solution itself doesn’t have any boundaries for the types of Risks which can be defined and assessed.
Did you know it can be used just as successfully to track the risk of cyber vulnerabilities as it can to track Health & Safety or a migration project from SAP ECC to S/4 HANA? The important context is to understand your Risk landscape and the driving forces behind your vulnerabilities.
Key Business Drivers
Generally speaking, there are four key issues we see companies wanting to address:
- Create a single source of information – Organizations are often running multiple risk measurements (most commonly via Excel). Having disparate systems equates to a lack of visibility.
- Improve accountability across the organization (especially internal controls and risk management) for greater transparency of risk.
- Streamline processes – Remove the need for high-input, inefficient, manual activities by applying a more proactive and less fragmented approach, leveraging system-led activities.
- Reduce compliance spend by removing costly manual processes.
SAP Risk Management can help deliver improvements in all of these areas.
More and more, companies are looking to evaluate and improve the efficiency and productivity of their applications. One way this can be accomplished is by leveraging technology such as Intelligent Robotic Process Automation (or iRPA) from SAP.
When defining your organization’s scope for automation, consider the nature of the tasks involved. Our clients have seen the greatest benefits from automating tasks which are:
- High Volume
- Resource Intensive
- Low Variance
In return for the initial investment that comes with any application change the overall gains and ROI are delivered in the form of:
- Enhanced Efficiency
- Higher Quality
- Reduced Cost
- Increased Productivity
- Increased Flexibility
- Increased User Satisfaction and improved User Experience (UX)
Next in the series, we’ll explore maximizing efficiencies in processes and reporting; click here to read the first article in the series.