Managing Risk in an Age of Complexity

Burcu Kutlu/ Finance Solution Manager

SAP Turkey

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Agenda

Key Challenges

Risk Management in General

SAP Risk Management

Innovation Focus Areas

Key Challenges

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Risks remain pervasive, persistent, complex and costlyCauses, indicators drivers and impacts are not connected

Financial

Cre

dit

Hedgin

g

Liq

uid

ity

Market

Tre

asury

SolvencyOperational

Assets Budget

Pla

nn

ing

HR

Ma

rke

tin

g

Sales

Product/ServicesSupply Chain

Te

ch

no

log

y

Quality

Hum

an

Beha

vio

ur

Outage

IT

DoSCyb

erc

rim

e

Access

Security

Data

Loss

Busin

ess

Dis

ruption

Po

liti

cal

Fis

ca

lR

iots

Wars

De

ficit

Str

ate

gic

Str

ate

gy

Competition

Corp

ora

te G

ove

rna

nce

Reputation

CommunicationSuccession

Ind

ustr

y

Stakeholders

expectations

Part

ners

hip

s

Key Resources

Leg

al

Con

tra

cts

Litig

ations

IP

Privacy

Sustainability

En

viro

nm

en

t

Climate Change

Eth

ics

Health

Hazards

Energy

Natu

ral

Resourc

es

Compliance

Regula

tions

Rep

ort

ing

Sta

ndard

sInternal rules

Procedures

Policies

Etc.

Etc

.

Etc.

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Transactions Conversations Machines

Massive amounts of data lead to new opportunities...

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Business change results in GRC complexity

Regulations Technology evolutionGrowth

New regulations

Constant change

Increased penalties

GRC Complexity:

New markets

New products

New threats

Cloud

Expanded automation

New vulnerabilities

Need for new controls Rethink GRC approachesExposure to new risks

Redundancies | Inability to scale | Manual processes© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6Public

Risk Management Overview

Simplify Gain Insight Strengthen

Automate

Integrate

Unify

Visualize

Predict

Monitor

Anticipate

Prepare

Respond

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8Public

© 2013 SAP AG. All rights reserved. 9

Automate previously manual tasks

Integrate systems and processes

Unify on a common technology platform

Simplify governance, risk and compliance by integrating GRC

activities into your underlying business processes

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Public

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Big Data drives business transformation for many…The same should be true for risk awareness

Big Data and Analytics

Business

Transformation

Risk

Awareness

Turn risks into opportunities

Big Data GRC monitoring

Predict control failures

Lead to improvements in

business processes

Help identify areas that

technology / automation can

be applied

Align resources for better

response

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10Public

Gain insight to help make better decisions Visualize and predict how risk may impact performance

Visualize

Predict

Monitor

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• What emerging risks could impact your organization

in the future?

• Are you prepared?

• How will you minimize the impact and duration of risk

and non-compliance events?

• Do you know how to respond?

• Are you staying ahead of an ever-changing

landscape?

Forward-looking GRC programs enable value preservation

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Public

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Strengthen the business by employing the right combination

of SAP solutions for GRC

Anticipate

Prepare

Respond

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SAP Risk Management

© 2013 SAP AG. All rights reserved. 15

Monitor thresholds, effectiveness

of risk responses, and corrective actions

Respond to risk after balancing

costs and benefits

Analyze risk via scenarios, modeling,

& other factors to understand

exposure

Link risks, risk drivers, risk

indicators, impacts and responses

Plan risk management within the

context of value to the organization

SAP Risk ManagementPreserve and grow value

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Drivers/impacts identified with

the risk bow-tie builder

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Determine inherent, residual, and planned residual

risk levels

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Analytics and reports including heat maps

Innovation Areas

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Innovation Focus Areas

EMBEDDED

COMPLIANCEBusiness processes integration

SIMPLIFIED USER

EXPERIENCEAcross all devices

NEW SOLUTIONSBuilt for the Cloud

(SAAS/HCP)

Support for GRC experts and

the business

Co-Innovate through Customer

Connect

Tightly integrated into business

processes

Leverage state of the art

analytics technology

Designed and built for cloud

and on-Premise

Built to “manage” the Cloud

Thank you