Increase Enterprise Risk Management Performance with SAP BusinessObjects Risk Management 10.0

  • by William Newman, Managing Principal, Newport Consulting Group
  • April 18, 2012
Learn how to leverage SAP BusinessObjects Risk Management 10.0 advances and best practices to create greater satisfaction with executives and other stakeholders in enterprise resource management (ERM) program activities.
Key Concept
SAP BusinessObjects Risk Management 10.0 enables executives to have a broad, enterprisewide view of risk programs and insight into risk drivers and key risk indicators with specific tie-ins to operational risk management areas, as well as other ERP functional capabilities inside the SAP Business Suite.

SAP BusinessObjects Risk Management 10.0 advances and best practices address the information and decision-making needs for enterprise resource management (ERM) inside the enterprise today. I look at how SAP BusinessObjects Risk Management 10.0 can shape ERM corporate policy, touching on critical operational areas and providing a broad framework of what an ERM program should consider in terms of best practices garnered by SAP over the past year.

The Three Key Pitfalls of ERM Programs

Risk management professionals often have an uncanny knack for determining relevant metrics to specific industries. If the metric is correlated properly this analysis can be viewed as prescient. However, it can be devastatingly inaccurate and irrelevant if correlated improperly. For example, financial analysts place significant value on an oil company’s  proved oil and gas reserves compared with the amount of refinery capacity and product inventory the company may have on hand. GRC resources, and ERM in particular, should be focused on that value driver. In another real-world example, an air carrier may be valued based  on customers’ service experiences, versus the value of the aircraft, landing rights, and route structures. In this case, a risk management professional may assess the risks related to his findings about customer service. The scores of flight attendants can be included after they complete training and those results can be given more weight as a predictor of financial and operational success.

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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