SAP BusinessObjects Risk Management 3.0

Business Blueprint Workshop

Key Risk Indicators

Version 1.0 Initial Release

SAP 2008 / Page 2

Business Blue Print Key Risk Indicators

Applies to:

SAP BusinessObjects Risk Management 3.0

Summary

This document is intended to explain the necessary steps required to configure Risk

Management 3.0.

Author(s): Customer Advisory Organization and Regional Implementation Group

Company: Governance, Risk, and Compliance

SAP BusinessObjects Division

Created on: August 2009

SAP 2008 / Page 3

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

Each IMG activity has the following sections:

Business context: Summarizes the business purpose.

Solution functionality: Shows the related UI screens.

Configuration and data gathering: Shows the IMG table, suggested interview questions, and data capture area.

SAP 2008 / Page 4

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 5

Business Context

Connectors

What are Connectors?

Connectors are used to connect the remote systems that can be integrated with RM 3.0

through the Key Risk Indicator (KRI) functionality

Why are Connectors Important?

Connectors serve to create the links between other systems and RM 3.0. Without them there

would be no integration with other products

What are the Benefits of Defining Connectors?

By using connectors the customer can integrate with other SAP ERP, BW and Web Services

to help monitor risks via a KRI

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Business Context

Example Connectors

Company ABC Corporation is managing three risks related to their personnel

Employee Retention

Workforce Longevity

Employee Training

With a little research they have discovered a number of potential SAP Queries that could serve

as Key Performance Indicators in their SAP HR System (turnover rate, employee duration,

employee training) that would help monitor the personnel risks

To bring these KPIs into the RM 3.0 system ABC Corporation needs to identify (with the assistance of their Basis expert) the technical Connector ID for the HR system. Once identified

they can configure their RM 3.0 system to leverage this system to help monitor their risks.

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Solution Functionality

Connectors

Connector ID

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Configuration and Data Gathering

Connectors

Maintain Connectors

In this Customizing activity, you maintain

the connecting systems to be used for SAP

BW Query, SAP Query and Web Services.

Note: If you are using web services, you

must use SOA management (transaction

SOAMANAGER) to create logical ports for

consumer proxy connections.

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Configuration and Data Gathering

Connectors

What forward-looking KRIs are you currently using to monitor your risks?

What are the source systems for the KRIs?

Work with your Basis expert to identify source system query data by listing the:

Connector ID

Connector Type (SAP Query, BW Query, Webservice)

Remote System

SAP 2008 / Page 10

Configuration Requirements

Connectors

Connector ID Connector Type Remote System Description

1

2

3

4

5

6

7

8

9

10

SAP 2008 / Page 11

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 12

Business Context

Scripts for SAP Query

What are Scripts for SAP Query?

Scripts for SAP Queries are the delivered queries found in your SAP ERP System.

(Note:ERP 2005 SP4 comes with standard delivered content for KRIs SAP Queries.)

Why are Scripts for SAP Query Important?

These Queries are used by RM3.0 to develop Key Risk Indicators that are used to help

monitor risks

What are the Benefits of Defining Scripts for SAP Query?

SAP Queries allow a user to choose from a multitude of possible queries by application

(Examples: FI-CO, HCM, MM, etc.) in order to develop possible KRIs for risk monitoring.

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Business Context

Example Scripts for SAP Query

Staying with our HR example, Company ABC Corporation has identified three Standard SAP

Queries*, within their SAP HR system, that can be utilized to help monitor their risks.

Risk Standard SAP Query

Employee Retention Turnover Rate

Workforce Longevity Employee Duration

Employee Training Employee Training

Once they have configured the Connector ID they can configure these Standard SAP Queries

and create the pertinent KRIs in the RM 3.0 application.

*Note: if a standard query is not available it is possible to create your own queries, however expertise in

query design is required

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Solution Functionality

Scripts for SAP Query

SAP Query combined with Connector and Script

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Configuration and Data Gathering

Scripts for SAP Query

Maintain Scripts for SAP Query

In this Customizing activity, you maintain

the scripts to be used when starting a query

in the SAP system.

Requirements

In order to use queries in the SAP system,

you must first have located a Standard SAP

Query or created the query in the ERP

system. (Discuss your SAP Query needs with your SAP IT professional)

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Configuration and Data Gathering

Scripts for SAP Query

Consider the risks you are currently monitoring and how you might better track potential risk

indicators pertaining to those risks. What potential triggers, or Key Risk Indicators should be

considered?

Does your SAP ERP system contain the data you require?

Are there Standard SAP Queries in existence that may fulfill your needs?

If no queries exist, are there info-sets and/or tables that may be combined to create a custom

SAP query?

Note: Work with your knowledgeable SAP IT staff to answer these questions

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Configuration Requirements

Scripts for SAP Query

Script Name Work Area User Group Query Name Variant Name

1

2

3

4

5

6

7

8

10

SAP 2008 / Page 18

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 19

Business Context

Scripts for BW Query

What are Scripts for BW Query?

Scripts for BW Queries are the delivered queries found in your SAP Business Warehouse

(BW) System. (Note: BI 7.04 comes with standard delivered content for KRIs SAP BW Queries.)

Why are Scripts for BW Query Important?

These Queries are used by RM3.0 to develop Key Risk Indicators that are used to help

monitor risks

What are the Benefits of Defining Scripts for BW Query?

Just like SAP Queries, SAP BW Queries allow a user to choose from a multitude of possible

queries by application (Examples: FI-CO, HCM, MM, etc.) in order to develop possible KRIs for risk monitoring.

SAP 2008 / Page 20

Business Context

Example Scripts for BW Query

In this example, Company ABC Corporation would like to track data related to a number of SCM

risks it has identified. In this case they have identified three Standard BW Queries*, within their

SAP BW system, that can be utilized to help monitor their risks.

Risk Standard BW Query

High Inventories Inventory Days Above Maxim

Low Inventories Inventory Days Below Minimum

Defective Items Product Quality

Once they have configured the BW Connector ID they can configure these Standard SAP BW

Queries and create the pertinent KRIs in the RM 3.0 application.

*Note: if a standard query is not available it is possible to create your own queries, however expertise in

BW query design is required

SAP 2008 / Page 21

Solution Functionality

Scripts for BW Query

SAP BW Query combined with Connector and Script

SAP 2008 / Page 22

Configuration and Data Gathering

Scripts for BW Query

Maintain Scripts for BW Query

In this Customizing activity, you maintain

the scripts to be used for creating a query

in the BW System.

Requirements

In order to use queries in the SAP BW

system, you must first have located a

Standard SAP BW Query or created the

query in the ERP system. (Discuss your

SAP BW Query needs with your SAP IT

professional)

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Configuration and Data Gathering

Scripts for BW Query

Again, consider the risks you are currently monitoring and how you might better track potential

risk indicators pertaining to those risks. What potential triggers, or Key Risk Indicators should

be considered?

Does your SAP BW system contain the data you require?

Are there Standard SAP BW Queries in existence that may fulfill your needs?

If no queries exist, are there info-cubes that may be used to create a custom SAP BW query?

Note: Work with your knowledgeable SAP IT staff to answer these questions

SAP 2008 / Page 24

Configuration Requirements

Scripts for BW Query

Script Name Info Provider Query Name View Name

01

02

03

04

05

06

07

08

09

10

SAP 2008 / Page 25

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 26

Business Context

Systems

What are Systems?

Systems, or System Types, represent the applications or functions that serve as the source of

the KRI information

Why are Systems Important?

Systems help to codify your KRIs into logical groupings

What are the Benefits of Defining Systems?

The benefits of logically separating the KRIs into groupings is better organizational management of the KRIs and easy identification of source data.

SAP 2008 / Page 27

Business Context

Example Systems

Through the use of Systems the ABC Corporation can logically organize their KRIs and quickly identify the source applications/functions for their KRIs. For example:

Financials

Material Management

Human Resources

Production Planning

Sales and Distribution

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Solution Functionality

Systems

Source system/application/function

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Configuration and Data Gathering

Systems

Maintain Systems

In this Customizing activity, you maintain the system type to be used for key risk indicators

(KRIs). For example, you maintain the system type "FI Financials".

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Configuration and Data Gathering

Systems

Identify and document the source systems, functional areas, or application areas for the SAP

Query and SAP BW Queries

Examples include:

Human Capital Management (HCM)

Materials Management (MM)

Production Planning (PP)

Financials/Controlling (FI-CO)

Sales and Distribution (SD)

SAP 2008 / Page 31

Configuration Requirements

Systems

System Description

SAP 2008 / Page 32

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 33

Business Context

Business Processes

What are Business Processes?

Processes are can be viewed as subsets of system types. For example the process,

Budgeting is a subset of Financials

Why are Business Processes Important?

As with system types, Processes are used to further organize the KRIs

What are the Benefits of Defining Business Processes?

The business process is used to logically separate the KRIs into groupings, beyond the system type, for better organizational management of the KRIs and easy identification of the source data.

SAP 2008 / Page 34

Business Context

Example Business Processes

Through the use of system types and processes the ABC Corporation can even further organize

their KRIs for by the source business processes. For example:

System Type Business Process

Financials Budgeting

Financials Accounts Payable

Human Capital Management Recruiting

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Solution Functionality

Business Processes

Business Process

SAP 2008 / Page 36

Configuration and Data Gathering

Business Processes

Maintain Business Processes

In this Customizing activity, you maintain the business processes for systems used by key

risk indicators (KRIs). For example, you can specify the business process Budget

Monitoring for your FI (Financials) system.

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Configuration and Data Gathering

Business Processes

Consider the System types for your KRIs (Financials, Sales and Distribution, Materials Management, etc.).

What are the Business Processes associated with each KRI and its System Type?

Examples:

System Type Business Process

Financials Budgeting

Financials Accounts Payable

Human Capital Management Recruiting

SAP 2008 / Page 38

Configuration Requirements

Business Processes

System Business Process

SAP 2008 / Page 39

1. Maintain Connectors

2. Maintain Scripts for SAP Query

3. Maintain Scripts for BW Query

4. Maintain Systems

5. Maintain Business Processes

6. Maintain Components

The following IMG activities are covered in

this document

SAP 2008 / Page 40

Business Context

Components

What are Components?

Components are used to represent the sub-systems of the system types. For example,

Controlling would be a sub-system of Financials. (This is different than a Process since a

Process can span multiple sub systems.)

Why are Components Important?

Components are used to create possible combinations of system types and sub-systems,

and are used during KRI Template creation

What are the Benefits of Defining Components?

The components are necessary for RM 3.0 to create the allowable combinations of system

types and systems. These combinations further organize the KRI data and give more control

over the ability to create KRIs

SAP 2008 / Page 41

Business Context

Example Components

The ABC Corporation has identified their applicable sub-systems and have decided to use

components to create the allowable combinations of system types and and sub-systems for

their company.

Allowable Combinations include:

System Component

Financials Controlling (FI-CO)

Financials Accounts Payable (FI-AP)

Materials Management Request for Quote (MM-RFQ)

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Solution Functionality

Components

Component

SAP 2008 / Page 43

Configuration and Data Gathering

Components

Maintain Components

In this Customizing activity, you define the components and business processes to be used

for Risk Management key risk indicators (KRIs).

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Configuration and Data Gathering

Components

Again, consider the KRIs you have identified along with their System types.

What sub-systems are being used within each System Type to support the KRIs?

Examples:

System Component

Financials Controlling (FI-CO)

Financials Accounts Payable (FI-AP)

Materials Management Request for Quote (MM-RFQ)

SAP 2008 / Page 45

Configuration Requirements

Components

System Component Description

SAP 2008 / Page 46

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