Risk Management
Core ConceptsDefinition
The process of identifying, assessing, and controlling threats to an organization's capital and earnings.
Detailed Description
Risk Management in ERP is a comprehensive process that involves identifying potential risks within various business operations, assessing the likelihood and impact of these risks, and implementing strategies to mitigate or manage them. This ensures that an organization can prepare for the unexpected and minimize the adverse effects that risks can have on business performance and sustainability. ERP systems facilitate risk management by providing integrated tools and analytics to monitor and control risk across different departments like finance, supply chain, and human resources.
Key Features
- Audit Tracking and Documentation
- Compliance Management
- Incident Management
- Real-time Monitoring and Reporting
- Risk Identification and Assessment
Common Modules
Compliance Management Module
Ensures that the organization's operations align with regulatory standards and helps avoid compliance risks.
Incident Management Module
Tracks and manages incidents that can affect company operations to prevent escalation.
Examples
Configuring Risk Alerts in ERP
An example configuration to set up alerts for high-value transactions that exceed predefined risk thresholds.
Popular Implementations
Implementing Risk Management in Supply Chain
A global manufacturer implemented an ERP-based risk management system to identify supply chain risks, enhancing overall supply chain robustness.