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

risk measure - Overview

• Component: FIN-SEM-CPM

• Component Name: Corporate Performance Monitor

• Description: Measure for which at least one risk has been identified.

risk measure - Details

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  Key Concepts: 
  Risk measure is a term used in the SAP Corporate Performance Monitor (FIN-SEM-CPM) to refer to a metric that is used to assess the potential risk associated with a particular business decision. It is used to evaluate the likelihood of a certain outcome and the potential impact of that outcome on the business. 
  
  How to use it: 
  Risk measure can be used to help businesses make informed decisions by providing an objective assessment of the potential risks associated with a particular decision. It can also be used to identify areas of potential risk and develop strategies to mitigate those risks. 
  
  Tips & Tricks: 
  When using risk measure, it is important to consider all potential outcomes and their associated risks. Additionally, it is important to consider the impact of any changes in the environment or market conditions on the risk assessment. 
  
  Related Information: 
  Risk measure is closely related to other metrics such as cost-benefit analysis and return on investment (ROI). Additionally, it is often used in conjunction with other tools such as Monte Carlo simulations and decision trees.