What’s risk? Wikipedia defines risk as ‘the expected value of one or more results of one or more future events’. Technically, the value of those results may be positive or negative; general usage tends to focus only on potential harm that may arise from a future event, which may accrue either from incurring a cost or by failing to attain some benefit.
One of the five key risks identified in 2009 by the Institue of Internal auditors Research Foundation was cost/expense reduction and containment risks. Identified in this area are the presence of weaker controls, lack of control oversight and lack of segration of duty controls. Specifics include not having real-time visibility to information upon which decisions are made. This is especially true when it comes to financial process such as accounts payable and accounts receivable, order management, and the supply chain. ERP solutons such as SAP help to mitigate this risk. Add on solutions that enhance and provide visibility into processes go even farther in removing risk factors.