What is impact in SAP GRC-RM - GRC Risk Management?

SAP Term: impact

• Component: GRC-RM

• Component Name: GRC Risk Management

• Description: Describes the potential consequences of a risk for a company or entity. An impact is defined in monetary or percentage terms and is often combined with the percentage probability of a risk happening. Examples of impact categories - defined in Customizing - are loss of revenue or non-compliance with regulations.

Smart SAP Assistant

• Key Concepts: 
  Impact in GRC-RM GRC Risk Management is a measure of the potential effect of a risk on an organization. It is used to assess the severity of a risk and prioritize it for further action. Impact is typically measured in terms of financial, operational, or reputational damage that could be caused by the risk.
  
  How to use it: 
  Impact is used to determine the priority of a risk and decide how much attention should be given to it. It is important to accurately assess the impact of a risk in order to ensure that resources are allocated appropriately and risks are managed effectively.
  
  Tips & Tricks: 
  When assessing impact, it is important to consider both the direct and indirect effects of a risk. For example, a risk may have an immediate financial impact, but it may also have long-term reputational damage that should be taken into account.
  
  Related Information: 
  Impact is one of the key components of risk management and is used in conjunction with other factors such as likelihood and control effectiveness to determine the overall risk level. It is important to understand how impact is assessed in order to effectively manage risks.