Run SAP Risk Management in Utilities to Get Business Value Fast

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1 SAP Information Sheet SAP Solutions for Governance, Risk, and Compliance SAP Risk Management Quick Facts Run SAP Risk Management in Utilities to Get Business Value Fast

2 Quick Facts Summary The SAP Risk Management application supports enterprise risk management needs of the utilities industry by assessing and monitoring risks in critical value-adding business processes. It provides a lens to view business risks in the generation, transmission, and distribution of energy and related activities. It helps to engage management and staff in identifying, analyzing, responding to, and monitoring risks. Rapiddeployment solutions speed business value. Objectives Integrated decision making in the business processes that drive business value Visibility into the factors that drive business Insight into how risk impacts of critical processes Automated processes and faster risk response Solution Efficient monitoring, alerts, and response to risks across the business Identification of relevant business risks in critical processes and the supply chain Use of surveys and collaborative tools to drive continuous reliable information Benefits Reduced cost and time to value of risk management implementation Greater collaboration in risk identification and assessment Risk management aligned with business Learn more Contact your SAP representative for quickstart implementation offers, and visit us online at 2 / 4

3 Quick Facts Few industries face the enterprise risk management challenges of utilities (see the table on the next page). Utilities must deal with huge investment requirements, new competition, rapidly changing fuel prices, and complex external relationships. Additionally, they face significant environmental issues, diverse compliance requirements, and vulnerability to financial and economic events. To overcome business risks and meet expectations, business executives, boards, and external stakeholders require better enterprise risk management solutions. Enterprise risk management adds value when it creates insight such as enabling a deep understanding of cause-effect relationships and how to influence them to add and preserve value. The SAP Risk Management application offers an award-winning bow-tie view of each risk. The bow-tie builder provides a graphical interface for users to profile each risk in the context of the value-driving activity or process it relates to, and to portray sometimes complex relationships between risk drivers, risk events, and impacts. It also allows risk responses to be created and assessed in the SAP Process Control application. WHAT MANAGERS NEED TO KNOW TO ABOUT MANAGING ENTERPRISE RISK In today s world, managers working to manage risks must know the following: How are today s risks changing? What new risks are emerging? What losses, incidents, and issues are associated with key risks? What key risk indicators are in place? Do key risk indicators have thresholds that reflect risk appetite? Is the overall risk management framework robust and reliable? 3 / 4

4 Quick Facts Enterprise Risk Management Challenges of Energy Utilities Sample Utility Objectives Typical Utility Risks Sample Utility Processes Develop and manage capacity Develop and manage transmission capacity Develop and manage distribution Manage customer service Manage critical assets and equipment Commodity price fluctuation Competition Supply chain failure Operational risks Market risks Natural events Acts of terrorism or sabotage Demand fluctuation Unplanned interruptions Competition from alternative energy Global warming Service interruptions Billing errors Service interruptions Contract disputes Asset and equipment availability Asset and equipment downtime Asset and equipment Market analysis Competitive analysis Fuel procurement Sourcing strategy Energy trading Marketing, distribution, and channel strategy development Sales planning Management of external relationships System maintenance Quality management Logistics and warehouse management Incident management and tracking Customer complaint management and monitoring Regulatory compliance management Asset management Asset maintenance and repair 4 / 4 CMP28659 (13/12)

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