What is risk in SAP (GRC - Governance, Risk and Compliance)?

SAP Term: risk

• Component: GRC

• Component Name: Governance, Risk and Compliance

• 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.

Smart SAP Assistant

• Key Concepts: 
  Risk is a potential for loss or harm that can arise from a given situation or action. In the context of SAP GRC Governance, Risk and Compliance (GRC), risk is defined as the potential for an event to occur that could have a negative impact on the organization. This could include financial losses, reputational damage, or other negative outcomes. 
  
  How to use it: 
  SAP GRC Governance, Risk and Compliance (GRC) provides tools to help organizations identify, assess, and manage risks. It allows organizations to identify potential risks and develop strategies to mitigate them. It also provides tools to monitor and report on risk levels over time. 
  
  Tips & Tricks: 
  When assessing risk, it is important to consider both the likelihood of an event occurring and the potential impact of that event. This will help organizations prioritize their risk management efforts and ensure they are focusing on the most important risks. 
  
  Related Information: 
  SAP GRC Governance, Risk and Compliance (GRC) also provides tools for compliance management, which helps organizations ensure they are meeting regulatory requirements. Additionally, SAP GRC Access Control provides tools for managing user access rights and preventing unauthorized access to sensitive data.