← Home
Risks
1. Financial risks: SAP carries financial risks associated with its large investments in research and development. If their investments do not pay off, this could have an impact on the company's bottom line.
2. Competitor risks: Competitor risks are always present in any industry, and SAP is no exception. Increasing competition from other software providers, such as IBM, Oracle, and Microsoft, could erode margins and ultimately lead to reduced profitability.
3. Security risks: As more companies move their business operations to the cloud, cyber security risks are becoming increasingly important. SAP has seen cyber threats such as data loss, breaches of personal information, and ransomware.
4. Regulatory risks: Ongoing changes to regulations and compliance requirements, such as GDPR, can cause a financial burden on companies that are not prepared.
5. Geopolitical risks: SAP operates in more than 130 countries across the globe, which means that any political or economic turmoil in a particular area could have an adverse effect on the company.