Which of the following statements best describes the risks of ERP systems?
A)The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems.
B)The risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems, due to the scope, size, and complexity of ERP systems.
C)The risks of implementing ERP systems are greater than the risks of implementing IT systems, but the operating risks are nearly identical.
D)The risks of operating ERP systems are greater than the risks of operating IT systems, but the implementation risks are nearly identical.

Question

Quizplus · Accepted Answer

ERP systems are more complex, larger and have a wider scope compared to traditional IT systems. Therefore, the risks of implementing and operating ERP systems are greater than the risks of implementing and operating traditional IT systems. ERP implementation requires lengthy implementation procedures, highly specialized teams, integration with legacy systems, and a massive amount of data migration. The failure of the ERP implementation can have a profound effect on the organization. Even after implementation, ERP systems are highly dependent on data accuracy, making data conversion errors and input errors a potential risk during the operating phase. Therefore, overall, the risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems.

Which of the Following Statements Best Describes the Risks of ERP