What is 'risk intensity' in SAP FIN-SEM-CPM - Corporate Performance Monitor?

risk intensity - Overview

• Component: FIN-SEM-CPM

• Component Name: Corporate Performance Monitor

• Description: Quantitative or qualitative assessment of the extent to which an event identified as a risk may occur. For example, a quantified risk intensity for the risk "Exchange Rate" would be 1.20 Euro for 1 USD; a qualitative risk intensity for the risk "Flooding" is, for example, "Basement devastated".

risk intensity - Details

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  Key Concepts: 
  Risk intensity is a measure of the potential impact of a risk on an organization. It is used in the Corporate Performance Monitor (FIN-SEM-CPM) component of SAP to assess the severity of a risk and determine the appropriate response. Risk intensity is calculated by taking into account the probability of a risk occurring, its potential impact, and the organization's ability to manage it. 
  
  How to use it: 
  Risk intensity can be used to prioritize risks and determine which ones should be addressed first. In FIN-SEM-CPM, risk intensity is calculated by assigning a numerical value to each risk based on its probability, impact, and management capability. This value is then used to rank risks in order of importance. 
  
  Tips & Tricks: 
  When calculating risk intensity, it is important to consider all factors that could affect the outcome. This includes not only the probability and impact of a risk, but also the organization's ability to manage it. Additionally, it is important to regularly review and update risk intensity calculations as new information becomes available. 
  
  Related Information: 
  For more information on risk intensity and how it is used in FIN-SEM-CPM, please refer to SAP's official documentation on Corporate Performance Monitor.