SAP Risk Analysis enables businesses to monitor control and optimize the process of risk assessment. Risk analysis is integral to the success of any project in the following ways (1):
- Exposing a project to predictable losses leads to more fatal losses.
- Being proactive, rather than reactive, is more efficient and also cost-effective.
- Projects run smoothly and are guaranteed better success when risk is eliminated.
While it may be impossible to completely avoid unforeseen circumstances, the aim of forecasting risks and outcomes is to bring such elements of surprise to the barest minimum. This is not only carried out at the outset; it is an ongoing process that endures until the team accomplishes its goals.
Rather than having to manually compute risks (this can be arduous and is prone to errors), using the SAP Risk Management software automates the process so that the team can focus on other important aspects of the project. It monitors not only risks but also tests them (and the impacts they might have) and helps you mitigate them. It has a friendly interface that gives you an overview of the risks you have to deal with in tabularized and graphical formats. This makes it easy to glean actionable insights and take proper measures to eliminate or, at least, minimize such risks.
Monitoring Risks
The SAP risk management software has a system that allows you to easily enter risks alongside relevant information such as a brief description, category, severity, and status, among others. You can also assign each risk to the member of the team responsible for handling it. From then on, the software does its work tracking the risks and featuring status icons that let you know the progress of each via status icons.
The application banks on its flexibility, and so, while you can use its preset suggestions, you can also customize the categories and status options to fit your organization’s model. You can also set an unlimited number of custom fields and define which fields should be visible for easier monitoring.
In addition, every stakeholder (especially members of the team assigned to a risk) gets detailed and intuitive reports to enable them to understand the threats and take actions to handle them.
Evaluating Risks
SAP risk evaluation can be qualitative and quantitative. In fact, both are recommended, not only to take advantage of the software’s full capabilities but also because both are useful in every project.
Based on the predefined conditions, the software evaluates each risk and comes up with a risk score that gives you an idea of how much every risk can impact the project. For the quantitative risk assessments, it can compute an estimated cost impact. This assessment helps you to put each risk into perspective and determine the most effective ways to address them. The software uses the data you enter such as the probability of occurrence and impact to get a risk score and risk level.
One of the most important advantages of the SAP Risk Analysis software is its versatility. Rather than use a rote approach for every risk, you can set up analysis profiles based on the risk category.
Mitigating Risks
SAP does not just track and analyze risks, it also enables you to address them effectively. On the software, after the risk has been analyzed, the project manager can determine the response and assign it to a member of the team who becomes the response owner. The response owner would then update other members through the visible risk status that shows if the response is in progress or not, and how far such a person has gone.
A response owner can also request help from other team members via action items what is to be done, and by whom. In working on the action items, users can attach documents and notes to communicate their progress and needs to the rest of the team.
Conclusion
This automated approach to risk analysis reduces costs and the chances of error, both of which are disadvantages of the traditional, manual procedure. A key advantage of the SAP Risk Analysis software is the seamlessness and transparency of the whole project. This facilitates more effective communication and overall collaboration to make the project successful. Its flexibility ensures that the software and its workspace are easily adaptable to your unique business needs and specifications.
Reference:
(1) https://smallbusiness.chron.com/risk-management-important-project-success-56920.html
- SAP Managed Tags:
