Exposure to the risk of ERP implementation: elements of measurement and mitigation

Abstract

While the implementation of an Enterprise System (ERP) may lead to important benefits,it also entails a number of risks. Numerous ERP project failures have been reported in theliterature, leading to major financial losses. This article proposes the essential componentsof a measure of ERP implementation risk. Several sources were used to develop the measu-re: the ERP implementation literature, the software project risk literature, and the out-sourcing and project management literatures. In light of the components of ERP imple-mentation risk, the article also reflects on some risk mitigation mechanisms