An organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial enterprise resource planning (ERP) system.

Which of the following would represent the highest potential risk?

Undocumented approval of some project changes

Faulty migration of historical data from the old system to the new system

Incomplete testing of the standard functionality of the ERP subsystem

Duplication of existing payroll permissions on the new ERP subsystem

Faulty migration of historical data from the old system to the new system.

Explanation:

Enterprise Resource Planning (ERP) is a business strategy process where organizations manage and integrate the main parts of their day-to-day business activities by using software applications.

The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.

When an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.