fraud, regulatory noncompliance, and financial
reporting errors. In addition to risk reduction, our
survey also seems to indicate a significant
improvement in the organization’s ability to assess
and manage the risk associated with these factors.
Similar to this observation, the results indicated that
ERP adoption leads to reduced risks of privacy
violation and provides a better mechanism for
assessing and managing this risk. ERP systems seem
to have minimal effects on risks associated with
legal, political, environmental, and international
issues.