Development of a Risk Management Mechanism for Enterprise Resource Planning Systems based on Work System Method

Abstract

The study collects 24 risk management-relevant research papers published between 2000 and 2010 to elicit significant risk factors in an attempt to develop a risk management mechanism for enterprise resource planning (ERP) systems. The study reports on its findings on 49 risk factors by using grounded theory and conducting expert questionnaires. The identified factors are further classified into nine categories based on work system method, and a risk management mechanism is developed thereafter. Finally, two cases are selected to examine the feasibility of the mechanism. The developed mechanism is found to be a practical and proper ERP system risk management tool that can assist enterprises in identifying, analyzing, assessing, and responding to potential risks.