What is 'loss value' in SAP GRC-BIS - SAP Business Integrity Screening?

loss value - Overview

• Component: GRC-BIS

• Component Name: SAP Business Integrity Screening

• Description: An umbrella term for the different types of losses actual, total, and opportunity costs used in the charts of the Executive Dashboard.

loss value - Details

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  Key Concepts: 
  Loss value is a term used in SAP Business Integrity Screening (GRC-BIS). It is a measure of the potential financial loss that could be incurred if a certain risk is not addressed. It is calculated by multiplying the probability of the risk occurring by the estimated cost of the risk. 
  
  How to use it: 
  The loss value can be used to prioritize risks and determine which ones should be addressed first. It can also be used to compare different risks and decide which ones are more important to address. Additionally, it can be used to assess the effectiveness of risk management strategies and determine if they are reducing the potential financial losses associated with certain risks. 
  
  Tips & Tricks: 
  When calculating the loss value, it is important to consider both the probability of the risk occurring and the estimated cost of the risk. Additionally, it is important to consider any potential indirect costs associated with the risk, such as lost productivity or reputational damage. 
  
  Related Information: 
  The loss value is closely related to other measures of risk, such as expected value and expected utility. Additionally, it is related to other measures of financial performance, such as return on investment (ROI) and net present value (NPV).