What is 'opportunity cost' in SAP GRC-BIS - SAP Business Integrity Screening?

opportunity cost - Overview

• Component: GRC-BIS

• Component Name: SAP Business Integrity Screening

• Description: Revenue or profit that is lost in comparison with a better handling alternative. Example: If you detect a fraud that costs 400 euro, but you have to spend 1000 euro to investigate the fraud; the actual loss is the 400, the opportunity cost is 1000.

opportunity cost - Details

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  Key Concepts: 
  Opportunity cost is a concept in economics that refers to the cost of an alternative that must be forgone in order to pursue a certain action. In the context of SAP Business Integrity Screening (GRC-BIS), opportunity cost refers to the cost of not taking certain actions to prevent fraud or other unethical activities. 
  
  How to use it: 
  GRC-BIS can be used to identify potential risks and opportunities for fraud or unethical activities. By using GRC-BIS, organizations can identify potential risks and opportunities for fraud or unethical activities before they occur, thus avoiding the opportunity cost associated with not taking preventive measures. 
  
  Tips & Tricks: 
  It is important to regularly review and update GRC-BIS settings in order to ensure that potential risks and opportunities for fraud or unethical activities are identified and addressed in a timely manner. Additionally, organizations should ensure that all employees are aware of the importance of adhering to ethical standards and the potential consequences of not doing so. 
  
  Related Information: 
  GRC-BIS is part of SAP's Governance, Risk, and Compliance (GRC) suite of products, which provides organizations with tools to help them manage risk and compliance. Additionally, GRC-BIS can be integrated with other SAP products such as SAP ERP and SAP HANA in order to provide a comprehensive view of an organization's risk profile.