What is risk in SAP (GRC-AUD - SAP Audit Management)?

SAP Term: risk

• Component: GRC-AUD

• Component Name: SAP Audit Management

• Description: The exposure to the possibility of adverse consequences or the chance of loss. The consequence of a risk event happening is usually a negative impact on the fulfillment of an organization's business objectives, its personnel, assets, or reputation. A risk is identified, documented, and tracked by the risk management process. It can be specified and quantified by defining the probability and impact of the risk happening. Risk attributes are first assessed qualitatively or quantitatively. Subsequently, a risk can be mitigated by means of monitoring, responses, or controls.

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• Key Concepts: 
  Risk is the potential for an unwanted outcome resulting from an action or inaction. In the context of SAP Audit Management, risk is the potential for a negative impact on the organization due to non-compliance with internal policies, external regulations, or other standards. 
  
  How to use it: 
  In SAP Audit Management, risk is assessed and managed through a combination of automated and manual processes. Automated processes include risk analysis and scoring, while manual processes involve assigning risk levels to audit findings and creating action plans to address them. 
  
  Tips & Tricks: 
  When assessing risk in SAP Audit Management, it is important to consider both the likelihood of an event occurring and the potential impact of that event. This will help ensure that risks are accurately identified and addressed in a timely manner. 
  
  Related Information: 
  Risk management is an important part of any organization’s compliance program. For more information on how to effectively manage risk in SAP Audit Management, please refer to the SAP Help Portal.