ERP Risk: Risk Matrix and Risk Register

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ERP Risk
Risk Matrix and Risk Register
2/28/2019

ERP Risk
Table of Contents
Introduction...........................................................................................................................................2
Risk Matrix............................................................................................................................................2
Case A...................................................................................................................................................2
Case B...................................................................................................................................................3
Case C...................................................................................................................................................4
Conclusion.............................................................................................................................................5
References.............................................................................................................................................7
1

ERP Risk
Introduction
Enterprise Resource Planning (ERP) is the integrated management of the core business
processes and automates the business functions at the back-end. There are a large number of
ERP projects that usually fail. The success rate for the ERP projects is just 30%. There are
several small and medium scale enterprises (SMEs) that desire to implement the ERP
packages in their organizations. However, there are various risks that emerge during the
process. It is necessary for these organizations to have advanced risk management plans and
processes in place so that the ERP installations and implementations are successful (Salmeron
& Lopez, 2010).
Risk Matrix
The risk matrix for the ERP cases is depicted in the table below.
Impact 1 2 3 4 5
Probability
1
Low Low Low Moderate Moderate
2 Low Low Low Moderate High
3 Low Low Moderate High High
4 Moderate Moderate Moderate High Critical
5 Moderate Moderate High Critical Critical
Case A
Company A is small scale firm that develops blast cleaning technology and deals in the
manufacturing of automated blast cleaning machines and robots. There are currently 20
employees that are associated with the organization. The company is contemplating on the
implementation of an ERP package as there are issues in the current excel-based ICT systems
in the organization (Saatcioglu, 2009). The risk register for the company is depicted in the
table below.
Risk
ID
Name Probability Impact Score Treatment
1 Communications
gaps between buyer
3 4 12 Avoidance
2