What is variance in SAP IS-B-RA - Risk Analysis?

SAP Term: variance

• Component: IS-B-RA

• Component Name: Risk Analysis

• Description: Measure of the extent to which values fluctuate from their mean values.

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• Key Concepts: 
  Variance is a measure of the difference between the expected and actual values of a given metric. In the context of SAP IS-B-RA Risk Analysis, variance is used to measure the difference between the expected and actual results of a risk analysis. 
  
  How to use it: 
  Variance can be used to identify areas where the actual results differ from the expected results. This can help identify areas where further investigation is needed or where corrective action needs to be taken. Variance can also be used to compare different risk analysis scenarios and determine which one is more likely to produce the desired results. 
  
  Tips & Tricks: 
  When using variance to compare different risk analysis scenarios, it is important to consider both the magnitude and direction of the variance. A large positive variance indicates that the actual results are better than expected, while a large negative variance indicates that the actual results are worse than expected. 
  
  Related Information: 
  Variance is closely related to other measures of risk such as standard deviation and coefficient of variation. These measures can be used in conjunction with variance to gain a more comprehensive understanding of the risk associated with a given scenario.