Research And Application Of ERP Project Risk Assessment Model

For a long time, ERP project needs the company to invest a lot of resources for the construction, but the success rate of ERP implementation is not high. So for a company, ERP construction has become one of the high-risk construction projects. How to appropriately allocate enterprise resources so as to prevent and reduce the risk of ERP construction projects, to ensure the success of the project, has been an issue that people concern and keep thinking about.This article focuses on the problems of high cost, lack of focus and effectiveness in the risk management of ERP projects, to study the methods of risk assessment and base on this, we proposed a three-layer model for assessing the risk of ERP projects. Combining the target and risk of the ERP Project as well as the environmental factor of the risk, the model uses some methods such as expert assessment, AHP(Analytic Hierarchy Process) and risk matrix to quantitatively evaluate all elements in it and then the value of the risk perniciousness and possibility can be obtained for comprehensive assessment of the risk factors.In order to define the contents of all levels in the model and form evaluable classified objects, the author summarized the Goals Breakdown Structure, the risk points and the management environment related with risk factors of ERP projects, with his own work experience and referenced to a large amount of document literature. When enterprises build ERP projects, the focus of decomposition target are different, the importance of risk factors, namely the hazard rating of the risk is different; Meanwhile, the management abilities associated with ERP risk of the enterprises are different, which leads to a variety of possibilities of risk. This model provides methods and carriers for this kind of weighted evaluation.Through the application of models, enterprises can start well from the target needs, combine their own levels of management, and have a practical, quantitative evaluation of the risks of ERP projects. By referring to the evaluation result, enterprises can not only measure resources that needed to be put into the ERP Project Risk Management, but also put limited resources into some other riskier field compared to other projects, reduce the cost paying for the ERP Project Risk Management and raise the mission success rate of that project.