Though this helps to reduce business risks a very stringent system could dramatically reduce time to market. The challenge lies in assessing a company's true business requirements, prioritising them and then matching them with the capabilities of the package. The trick, however, lies in implementing what is necessary and not what the package offers. In an ERP implementation a holistic approach to risk management is required to achieve maximum benefit without affecting the efficiency and productivity of the organisation. A 'risk' can arise before, during or after the implementation.
Every project has risks.
In most cases the risk can be averted through proper planning and monitoring. To take an example, a proper ERP package selection exercise could ensure that your money is finally invested in technology that best suits your requirements. Risk management is a continuous process and should form an integral part of a project manager's work. Example of a typical risk management process is shown in chart 1. A risk assessment rating matrix can then be drawn up Once the risks have been identified and a risk assessment rating matrix drawn up the various solutions available can be evaluated in terms of the cost involved and impact on the project.