Risk management is a vital component of successful project and portfolio management. Within SAP Portfolio and Project Management (SAP PPM), risk management helps organizations identify, analyze, monitor, and mitigate risks throughout the project lifecycle. Properly configuring SAP PPM Risk Management ensures that risks are proactively managed, minimizing potential negative impacts on project objectives.
This article provides an overview of key steps and best practices for configuring risk management in SAP PPM.
SAP PPM Risk Management enables the systematic tracking of risks related to projects and portfolios. It supports:
The first step is to ensure that risk management features are enabled in the SAP PPM system. This typically involves:
Customize risk categories based on organizational needs. Examples include:
Defining categories and types helps in consistent risk classification and reporting.
Set up key attributes that describe risks, such as:
These attributes enable detailed risk analysis and tracking.
Configure scales and weighting for risk probability and impact to support quantitative or qualitative risk assessments. This may include:
Link risks to project elements such as Work Breakdown Structures (WBS), milestones, or tasks. This integration allows:
Configure fields to document planned risk responses such as:
Tracking responses helps ensure accountability and effectiveness of risk mitigation actions.
Set up workflow rules and notifications to alert risk owners and project managers about critical risk changes, due dates for mitigation actions, or risk escalations.
Design standard reports and dashboards to monitor risk status at project and portfolio levels. Key reports typically include:
These tools provide visibility to stakeholders and support proactive decision-making.
Configuring SAP PPM Risk Management effectively empowers organizations to anticipate and manage potential project risks proactively. With well-defined risk categories, assessment methods, response strategies, and integrated workflows, SAP PPM helps reduce uncertainties and increase project success rates.
By embedding risk management into the project execution process, organizations can safeguard their investments, optimize resource allocation, and deliver projects that meet their objectives on time and within budget.