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Exploring the Key Capabilities of SAP Risk Management

<div id="content"><p tabindex="0">In the following video, you learn the key capabilities of SAP Risk Management.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_hzc1bb6z"></div></div></div>

SAP Risk Management Key Capabilities

<div id="content"><p tabindex="0">SAP Risk Management acts as a central platform for managing enterprise risks and compliance. It aids companies in integrating and coordinating risk management activities, enhancing their understanding of risks, and planning appropriate responses to safeguard the enterprise.</p><p tabindex="0"></p><p tabindex="0">The system harmonizes risk management efforts across SAP Process Control and SAP Audit Management, ensuring a unified view of controls and responses.</p><p tabindex="0">Here are the five main capabilities:</p><ol><li tabindex="0"><strong>Risk Planning</strong> serves as a central repository for documenting the Enterprise Risk Management framework, harmonizing information on objectives, risk categories, impacts, and responses. It integrates data seamlessly with SAP Process Control and SAP Audit Management for standardized risk management documentation.</li><li tabindex="0"><strong>Risk Identification</strong> focuses on creating a comprehensive list of potential risks including their drivers, impacts, and responses, serving as a foundation for further risk assessment and strategy development. This proactive identification improves organizations' resilience and decision-making.</li><li tabindex="0"><strong>Risk Analysis</strong> provides insights that help prioritize risks, allocate resources, and implement appropriate strategies. By understanding the risk landscape, organizations can anticipate threats, capture opportunities, and enhance resilience and performance.</li><li tabindex="0"><strong>Risk Treatment</strong> involves managing and mitigating identified risks through strategies like risk avoidance, reduction, transfer, and acceptance. Continuous monitoring and review mechanisms ensure the effectiveness and relevance of these strategies over time.</li><li tabindex="0"><strong>Risk Monitoring and Reporting</strong> entails continuously tracking and assessing risks, providing timely reports on their status, and ensuring that appropriate actions are taken to mitigate or manage risks effectively. This ongoing process helps to maintain organizational resilience and informed decision-making.</li></ol><p tabindex="0">Overall, SAP Risk Management aims to identify, assess, and mitigate risks to protect an organization's operations, financial performance, and reputation, fostering a resilient and sustainable business environment.</p></div>

Summary

Exploring SAP Risk Management

Explore the key capabilities of SAP Risk Management, including risk planning, identification, analysis, treatment, monitoring, and reporting. Learn how SAP Risk Management can help your organization proactively manage risks.<br><br># This description was auto-generated #

U1.L3Understanding_SAP_Risk_Management_Key_Capabilities_(HD_1080_-_WEB_(H264_4000)).mp4

Welcome to this video on SAP Risk Management Key Capabilities. We will focus on five main key capabilities as well as risk treatment capability components. Let's get started. SAP Risk Management serves as the central hub for managing enterprise risk and compliance. The process enables companies to integrate and coordinate risk management activities, leading to a deeper understanding of risk and the ability to plan appropriate responses that safeguard the enterprise. By integrating with SAP Process Control and SAP Audit Management, a harmonized view of response and mitigating controls is achieved through shared control response. SAP Risk Management centralizes five main capabilities. Risk planning is the first main capability of SAP Risk Management. SAP Risk Management serves as a centralized repository for documenting the enterprise risk management framework. It captures information related to the organization's objectives, activities, drivers, impacts, risk appetite, risk threshold, risk categories, risks and responses. This information is harmonized across different data formats and seamlessly integrated with SAP process control and SAP audit management. The integration ensures standardized documentation of enterprise risk, allowing for efficient management and analysis. The second main capability of SAP risk management is risk identification. The primary goal of risk identification is to create a comprehensive and accurate list of potential risks that the organization may face. This list should include the drivers, impacts, key risk indicators, and appropriate responses to each risk. It serves as a foundation for further risk assessment, prioritization, and the development of effective strategies to manage and mitigate risks. By proactively identifying risks, organizations can improve their ability to anticipate threats and make informed decisions to protect and enhance their overall resilience and performance. For example, they can choose the most suitable risk response strategy to address each identified risk. This proactive approach helps organizations anticipate potential threats and make informed decisions to protect and enhance their overall resilience and performance. The third main capability of SAP risk management is risk analysis. Risk analysis plays a crucial role in the risk management process. It provides organizations with essential information and insights to effectively prioritize risks, allocate resources, and implement appropriate risk response strategies. By anticipating potential threats and capitalizing on opportunities, organizations can enhance their overall resilience and performance in a dynamic business environment. By conducting risk analysis, organizations gain a comprehensive understanding of their risk landscape. This empowers them to make informed decisions and take proactive measures to manage risks effectively. It also helps organizations identify potential opportunities that can be capitalized on to drive growth and innovation. The fourth main capability of SAP risk management is risk treatment. Risk treatment capability refers to an organization's ability to effectively manage and mitigate identified in the risk management process. It involves implementing measures and strategies to reduce the likelihood and impact of risks, as well as ensuring the organization's readiness to respond and recover from any potential incidents or crises. For example, an organization may have a risk treatment capability that includes the following components. The first risk treatment capability component is risk avoidance. An organization may choose to avoid certain risks altogether by not engaging in activities or ventures that pose significant risks. This could involve not entering into partnerships with high-risk entities or not pursuing projects with uncertain outcomes. The second risk treatment capability component is risk reduction. An organization may implement measures to reduce the likelihood or impact of identified risks. include implementing safety protocols, conducting regular inspections, or investing in technology or equipment that enhances security or resilience. The third risk treatment capability component is risk transfer. An organization may transfer the financial burden of certain risks to external parties, such as insurance companies or contractual agreements. This allows the organization to mitigate the potential financial impact of risks by shifting the responsibility to another entity. The fourth risk treatment capability component is risk acceptance. In some cases, the organization may choose to accept certain risks if the potential benefits outweigh the potential negative consequences. This could involve making informed decisions based on a thorough risk assessment and cost benefit analysis. The last risk treatment capability component is risk monitoring and review. An organization should continuously monitor and review its risk treatment measures to ensure their effectiveness and relevance. This includes regularly assessing the changing risk landscape, evaluating the performance of implemented measures, and making necessary adjustments or improvements. By having a robust risk treatment capability, organizations can proactively manage risks and minimize their potential impact on operations, reputation, and financial stability. It enables them to make informed decisions, allocate resources effectively, and maintain a resilient and sustainable business environment. The fifth and last main capability of SAP Risk Management is risk monitoring and reporting. Risk monitoring and reporting capability in risk management refers to the ability of an organization to continuously track and assess risks, and to provide timely and accurate reports on the status of these risks. This capability enables organizations to proactively identify, analyze, and respond to potential risks, ensuring that appropriate actions are taken to mitigate or manage them effectively. The goal of SAP Risk Management is to identify, assess, and mitigate risks that may impact an organization's operations, financial performance, or reputation. It provides a comprehensive framework for managing risks by enabling organizations to to proactively identify potential risks, evaluate their potential impact, and develop appropriate risk mitigation strategies. In the upcoming units, we will explore more into the key capabilities of SAP risk management. See you in the next video.