Risk Management Plan ERP WW Implementation

[Former Member]

Hello All

I´m developing a Risk Management Plan and need to identify risks related to ERP implementation in multiple geographies. The implementations will be based on the same template and the template, a base model, will be managed in a centralized way by the corporation, both from a process and from an IT perspective, e.g., process changes that impact the base model will be approved by a centralized group responsible for the integrity of the base model. These changes, if approved, will be incorporated to the base model under a strict versioning and configuration management policy. The Business and IT organizations will have to manage both the integrity of the base model (and its versions) and the rollout of specific versions to the geographies. Geographies include Latin America, North America, Africa.

I´m willing to identify risks of the strategy to the business itself (the strategy I described above) and it´s impact on the IT organization/processes that will need to support it. This company already runs SAP on it´s biggest business unit, now it will be expanding the solution to smaller BUs in other countries. The base model currently used by the corporation is different than the base model (template) that will be implemented in the smaller BUs, for historical reasons.

A good start could be a Risk Assessment (part of a typical Risk Management Plan) of an ERP implementation project with similar characteristics, e.g.: multiple geographies, different Business Units in these geographies, having to ensure integrity of the base model (template), etc...

Does anyone have anything similar to this that I could use as a start? Thanks.

Message was edited by:

José Welington Nogueira Filho

[Former Member]

Hi Jose,

Its quite interesting that you are working on Risk management . Risk management Plan requires to analyze the organization based on its Operations,Financial activities.

As per my understnading Risk management process is involved or can be segregated based on the following classification .

a) Financial Risk

b) Operational Risk

c) Strategic Risk

d)External Risk

Your Risk management Plan cna start up with the identify, categorize and analyze enterprise risks.

a) Financial Risk:

- Based on the complexity ,size and nature of organization identify first top

ten financial risks in the company.

b) Operational Risks:

- Quality

- Hiring and retention

- Supply Chain

- Succession Planning

c) Strategic Risks:

- Intellectual Property Infringement / Counterfiet

- Business Model and portfolio

- Resource alignment

d) Exteran Risks:

- Catastophic/Business Interrruption

- Technological innovation

- Competetors

While coming to Risk management Life-Cycle:

1. Validation and verification

2. Risk Treatment process

3. Governance & Monitoring

Based on the Low and high point methods you can identify the risks and give ranks based on the risk priority and prepare a graphical presentation .

As per above risks classification i am giving you more classification it will help you to prepare your Risk management plan in detailed ananlysis:

a) Financial Risks:

- Cash Flow

- Credit

- Debit

- Equity

- Interest rates

b) Operational Risks;

- Catastophe /BI

- Change Mangement

- Security

c) Strategic risks:

- Brand repuatation

- Business Model Portfolio

-Channel

- IP Infringment/Counterfiet

- Quality

- Resource allocation /Alignment

d) External Risks:

- Competeiotrs

- Customers Needs / Product support

- Legal / anti-trust

- Regulatory / Taxation

- Technological Innovations

This information will help you to start your Risk analysis Plan. Please let me know if you need any thing esle on this.

Please award points if this is helpful.

Regards,

Ramesh Choragudi