"3.4. Risk Monitoring and ReviewRisk monitoring and review are the steps of risk control. These steps are important for managingthe risk effectively in the project. The risk monitoring is essential for analysing the response ofthe project to the changing environment and for prioritising the elements that are more risky andneed mitigation. Such monitoring is performed throughout the designing and implementation andeven after the implementation of ERP. Many organisations use annual figures and statements toreview and monitor the risk involved with the new project and system (Ranong et al., 2009).Shane Co. also found the actual cost of the SAP implementation far high as compared to whatwas estimated at the time of planning (Kimberling, 2009). Klemetti (2006) proclaimed that forcarrying out the effective implementation of the system or company?s goals, it is important toundertake a proper planning. However, there was a lack of such planning at Shane Co. due towhich it was unable to carry out the proper monitoring of the risks involved. There are certaincritical factors that are actively involved in monitoring and reviewing risks which are illustratedbelow:Figure 3.4.1: Comparisons between Critical Success Factors Proposed by Different AuthorsSource: (Ranong et al., 2009)Shane Co. seemed to lack the proper commitment from top management as stressed byKanaracus (2009) which could lead to efficient monitoring of the risk involved in SAPimplementation. 4. Procurement Planning and Strategies4.1. Procurement PlanningThe procurement planning is defined by Lessard and Lessard (2007) as the process of identifyingthe possible sources through which product could be sourced. It is an important part of projectmanagement and is carried out through the following process as highlighted in the table below:Figure: 4.1.1: Procurement Planning ProcessSource: (Lessard et al., 2007)The procurement planning helps in identifying how the outside products and services could bestmeet the internal demands of the project. Shane Co. made contract with SAP AG in 2005 forimplementing a "highly sophisticated point-of-sale and inventory management system(Kanaracus, 2009). Shane Co. buys most of the diamonds and gems from different suppliers inBombay, Belgium, Bangkok and Tel Aviv (Larson, 2009). Therefore, Shane Co. heavily reliedon external sources for procuring the product and system. The risk perception, risk identification and risk allocation undergo various changes during theprocurement cycle. Therefore, it is important to use the risk map through which each and everyactivity of the procurement plan could be identified in order to avoid risks as illustrated below: Figure: 4.1.2: Procurement Planning Map "