Connections: Finance and SAP Risk Management
Last week I attended a talk at my old school – italicize the old – given by a hedge fund manager who among other distinguished accomplishments wrote with compelling clarity in 2006 about the impending credit crisis: the kind of person people listen to.
The talk focused on investment approaches and risk management, and from the get-go I was fascinated by the connections between that risk management and risk management for SAP implementations, which have by now become such a strategic financial component of larger international companies.
In fact, it is awfully fun these days as someone who works on the bridge between IT and business to see examples of concept convergence in areas such as:
- Risk Management
- Project and Change Management
- Analytics.
Refreshingly, the once-massive moat between tech and, really, your customers, is shrinking, thanks to more open technologies and the desire and need of well-run businesses to realize the benefits of huge technology investments.
So for example, instead of needing to make a phone call and basically redirect a satellite to get a predictive report on sales areas with lots of data, managers – perhaps with a bit of assistance but so much less than previously – can access some HANA libraries along with maybe PA and Lumira and move the management of IT into business.
When I worked for UBS in Zürich I met a few financial risk managers, and some concepts they used, echoed by the speaker last week, really rang some bells (in a nice way!). Let me mention a couple, adapted for SAP.
1) The realization of your Business Case is directly tied to the management of your risks. And management = understand / embrace / minimize.
2) Let go of your thought barriers and see beyond the obvious. Assign someone with an understanding of your business processes and a great imagination (assign yourself as well!) to translate that standard list of “ERP things-that-go-wrong”, e.g.
– Data cleansing and harmonization
– User adoption
– Consultant management
– Realistic and effective process mapping
– Project management and governance
– QA
into scenarios specific to your people and processes.
It could be a fun weekly challenge, to get out and listen to someone really smart and good at what they do.