• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
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HOME > Archive > 2018 > Volume 6 Number 3 (Aug. 2018) >
JOEBM 2018 Vol.6(3): 84-90 ISSN: 2301-3567
DOI: 10.18178/joebm.2018.6.3.555

Practical Risk Assessment Methodology for ERP Project Implementation

G. Thangamani

Abstract— Risk and complete uncertainty can potentially have serious consequences on the Enterprise Resource Planning (ERP) implementation. Risk management is one of the ten knowledge areas propagated by the Project Management Institute (PMI). Furthermore, risk management in the ERP system implementation context is a comprehensive and systematic way of identifying, analyzing and responding to risks to achieve the project objectives. This paper examines a practical approach to risk assessment using Monte Carlo simulation for ERP implementation. Risk Assessment Table (RAT) was developed as risk assessment model and Monte Carlo simulation was used to assess the project value at risk and its uncertainty. An overall risk management framework was also developed and the same was used to explore various risks, categorize them per their sources, assesses those risks and their variability. This approach supports the important project stakeholders such as customer, contractor or developer, consultant, and supplier to meet their commitments and minimize negative impacts on ERP project performance in relation to cost, time and quality objectives. The methodology was demonstrated using a case study on a ERP implementation project.

Index Terms— ERP, Monte Carlo simulation, risk assessment, value @ risk.

G. Thangamani is with the Indian Institute of Management Kozhikode, Kerala, India (e-mail: gtmani@iimk.ac.in).

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Cite: G. Thangamani, "Practical Risk Assessment Methodology for ERP Project Implementation," Journal of Economics, Business and Management vol. 6, no.3, pp. 84-90, 2018.

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