FulcrumWay - Plug Your Top Revenue Drains in Order to Cash Cycle

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A Leader in Risk Based Enterprise Controls Management Solutions

Copyright ©. Fulcrum Information Technology, Inc. Give me a lever long enough and a fulcrum on which to place it, and I shall move the world - Archimedes

Plug Your Top Revenue Drains in Order to Cash Cycle with Oracle Advanced Controls

Webinar – June 17th , 2014

Adil Khan

Managing Director

www.fulcrumway.com Copyright © FulcrumWay

Plug Your Top Revenue Drains

Introductions

Top Revenue challenges in ERP

Controls for O2C Process

Oracle Advanced Controls for O2C

Case Study

Q&A

Agenda


A Leader in Risk Based Controls Management™

FulcrumWay: is the #1 End-to-End Provider of Risk Based Enterprise Controls Management

Solutions for Oracle EBS, PeopleSoft and JDE customers with over 200 Fortune-500 to Middle Market

clients. Since 2003, we have successfully assisted companies across all major industry segments.

Expertise: Risk Advisory Services. Advanced Controls Design for Enterprise Applications. Best

Practices for Risk Mitigation and Internal Controls Automation. Audit, Compliance, Financial,

Enterprise and Operational Risk Assessments. Risk Remediation Services.

Packaged Solutions: FulcrumWay is the #1 choice of Oracle customers for Oracle GRC Advanced

Controls, GRC Manager, and GRC Intelligence/OBIEE software implementation. Oracle has certified

us as the only partner with Accelerators for Oracle GRC. We also provide Managed Services

Software Services: Risk Assessment for ERP systems, Control Design and Management Tools,

Controls Catalog, Enterprise Risk Manager, Financial Reporting Manager, Audit Manager

USA Presence: Privately held Delaware Corporation with US offices in New York City, Dallas and San

Francisco

International Presence: in Auckland, Chennai, Johannesburg, London, Mexico City

FulcrumWay


FulcrumWay Clients Successful

Track Record Government Oil and Gas

Healthcare

Communications

Financial Services

Transportation Natural Resources

Manufacturing

Retail

High Tech Media/Entertainment Life Sciences

http://www.rd.com/

http://www.arvinmeritor.com/

http://www.semiconductorstore.com/pages/asp/supplier.asp?pl=0133

http://www.integralife.com/index.aspx


FulcrumWay™ Insight

Thought Leadership

Co-Authored GRC Book: First book on GRC for Oracle Applications

SROAUG GRC Solution Lab - February 21st – Los Angels: GRC Case Studies and Best Practices

Collaborate 14 – GRC Client Appreciation Dinner April 7th, 2014 Las Vegas

NEOAUG Spring Conference – June 9th – Worcester, MA -GRC Case Studies and Best Practices

IIA/ISACA GRC Conference – August 19th, 2014 - Presentations – Five New Ways to Assess the Risks that Can Turn Results into Rewards

Webcasts – Every 3rd Tuesday of the Month – GRC Best Practices, Trends and Expert Insight

Oracle Open World – Annual GRC Dinner on September 29th, 2014 - San Francisco, CA

LinkedIn –FulcrumWay Risk, Compliance and Audit Software Group

YouTube Podcasts – FulcrumWay Instant Insight in 10 min or less

Proven Expertise



Introductions




Case Study

Q&A

Agenda


Top Revenue Challenges

How does Revenue leak through your ERP system?

Top 10 Issues Business Risk Top Line Impact

Unusual Discounts Order Fulfilment Revenue Leakage

Pending Shortages Order Fulfilment Revenue Leakage

No Credit Check Order Fulfilment Revenue Leakage

Price Differences Order Fulfilment Revenue Recognition

Shipping Errors Shipping & Delivery Revenue Recognition

Missing Sales Order Shipping & Delivery Revenue Recognition

Customer Over Limit Invoice & Billing Revenue Leakage

Write-offs Invoice & Billing Revenue Leakage

Billing Delays & Errors Invoice & Billing Revenue Recognition

Customer OFAC Check /Duplicate Customers Master Data Reveneu Penalties

O2C Challenges



Introductions




Case Study

Q&A

Agenda


Business Process Models Service Oriented Architecture

Business Intelligence Collaboration

Order Management – Shipping Execution

Receivable Management – Cash Management

Order Categories

CRM

Call Center

E-Commerce

SWIFTNet

Settlement

Payment

Processors

Enter

Order

Book

Order

Pick

Release

Ship

Confirm Receipt

Banks

Order to Cash Process

Control Points O2C Challenges

Invoice Bank

Recon.






Order Categories

CRM

Call Center

E-Commerce

SWIFTNet

Settlement

Payment

Processors

Enter

Order

Book

Order

Pick

Release

Ship

Confirm Receipt

Banks



Invoice Bank

Recon.

Are your customers compliant with trade regulations? Are the customers

blacklisted?

Do you have duplicate customers?

Are there inappropriate adjustment to Invoices?

Are customer orders over credit limits?

Are you missing critical customer information?

Is the information valid?

CONTROLS






Order Categories

CRM

Call Center

E-Commerce

SWIFTNet

Settlement

Payment

Processors

Enter

Order

Book

Order

Pick

Release

Ship

Confirm Receipt

Banks



Invoice Bank

Recon.

CONTROLS

Are there unusual discounts or over-

rides?

Are there any variations in unit of measures?

Are there suspicious credit limit changes?

Has the same user created and approved the order?






Order Categories

CRM

Call Center

E-Commerce

SWIFTNet

Settlement

Payment

Processors

Enter

Order

Book

Order

Pick

Release

Ship

Confirm Receipt

Banks



Invoice Bank

Recon.

Order price different from shipping price?

Are there any shipments with missing / unmatched sales

orders?

Are there delays in shipment of booked

orders?

CONTROLS






Order Categories

CRM

Call Center

E-Commerce

SWIFTNet

Settlement

Payment

Processors

Enter

Order

Book

Order

Pick

Release

Ship

Confirm Receipt

Banks



Invoice Bank

Recon.

CONTROLS

Sales Order with no billing?

Did the person create the invoice and entered

receipt?

Invoice amount over customer credit limit in

the period?

Unauthorized changes to invoices?

Suspect revenue recognition?



Introductions




Case Study

Q&A

Agenda


Advanced Controls

Layer of automated controls over ERP controls

Continuously monitor key controls

Detect and Report issues as they occur

Prevent issues from occurring

Quickly see high risk issues with exception based dashboards

Address issues that affect the bottom line

Reduces operational risk and process effectiveness

What are Advanced Controls?


Advanced Controls One Enterprise Foundation

Enterprise Risk & Controls Foundation

Dashboards, Reports and Alerts

Notifications Worklists Email Perspectives Search

Risk, Controls & Compliance Management

Reviews Documentation Assessments Remediation Surveys

Continuous Controls & Risk Monitoring

Setups Access Master Data Audit Tests Transactions

User Authored Controls Data Connectors Fraud & Error Patterns

Ro

le B

as

ed

Ac

ce

ss

Se

cu

rity

We

b S

erv

ice

s &

AP

Is

Custom or Legacy Applications

Risk & Controls Repository

Assess and Certify

Detect Policy Violations

All Users & Applications

100% of Transactions

All Processes Procure to Pay

Order to Cash

Financial Reporting

User Access

Manage by Exception

Optimize Processes


Standard + Advanced Controls

User Roles

Ship

Confirm

Rules

Customer

Credit

Sentiment

Analysis

Split Sales

Orders

Hide

Displays of

Sensitive

Data

Duplicate

Customers

Transaction

Threshold

Amounts

Invoices

over Credit

Limits

Fine-

grained

User

Access

Configuration

Snapshots &

Audit Trial

Transaction

Pattern

Analysis

Fuzzy

Logic,

‘similar

values’

Advanced

Controls

Standard

Controls

Credit

Memo Track

Discounts

Advanced Controls


Enterprise Controls Platform Advanced

Controls

Automated Application Controls Management

Monitor Control Effectiveness

Enforce Policies in Context

What users can do

How is the process set up

How users execute processes

What users have done

What’s changed in the process

What are the execution patterns

Application Access

Controls

Configuration Controls

Transaction Controls

Preventive Controls

GRC Manager

SOD & Access

Application Configuration

Transaction Monitoring

GRC Intelligence

Advanced Controls

Preventive Controls



Controls

Compensating Policies

Preventive Provisioning

Remediation (Clean-up)

Access Analysis

• Accelerate deployment and time to value with ready-made controls library

• Mitigate risk of inappropriate user access with approval workflow and audit trails

• Simplify segregation of duties enforcement with simulation and remediation

Define Access Controls

Detection Prevention

GRC Manager

SOD & Access



GRC Intelligence

Advanced Controls

Application Access Controls Embed Controls Natively in Enterprise Apps

www.fulcrumway.com Page 22 Copyright © FulcrumWay

Identify the users with questionable access and their count of controls violated.

Identify all Users and the Functions/Forms that are causing violations to the access controls. Identify all Responsibilities that are causing violations

to the access controls.

Identify all Responsibilities and the Functions/Forms that are causing violations to the access controls.



Controls

Manage Data Integrity

Enforce Change Control

Monitor Configuration

Changes

Document or Compare

Configurations

Configuration Controls Ensure Integrity of Critical Application Setups

• Tightly control change management to accelerate development and test time

• Track complete audit trails for changes to key configurations

• Achieve consistent application setup and operating standards across multiple instances

Define Configuration

Controls


GRC Manager

SOD & Access



GRC Intelligence

Advanced Controls

Preventive Controls


Differences


Business application does not keep a record history of change details nor does it alert users to changes.

Continuously Monitor Controls

When?

What?

Where?

Who?



Controls

Review Audit Reports

Enforce Field

Validation

Initiate Approval Workflow

Prevent Read or Write Access

Preventive Controls Embed Controls Natively in Enterprise Apps

• Enforce preventive controls for specific users and events natively within

enterprise application • Mitigate risk of application changes with

approval workflow and audit trails

• Protect sensitive application data

• Reduce audit costs, reduce maintenance costs, increase IT productivity

Define Preventive

Controls

Prevention

GRC Manager

SOD & Access



GRC Intelligence

Advanced Controls

Preventive Controls


Disable invoice Actions… button for invoices created by same user



Controls

Transaction Controls Identify Inaccurate or Fraudulent Transactions

• Continuously monitor transaction accuracy, mitigate fraud exposure

• Test against thresholds

• Search for anomalies

• Perform transaction sampling


Compensating Controls

Review and Address

Suspects

Perform Transaction

Analysis

Define Transaction

Controls

Business Elements from

Designated Nationals list

Business Elements

Suppliers from various

business applications

Business Rules, written in “Plain English”,

by Business People – No Coding/Scripting





Business Elements



Business Elements



Business Elements









GRC Manager

SOD & Access



GRC Intelligence

Advanced Controls

Preventive Controls


Advanced Controls



Introductions




Case Study

Q&A

Agenda


Case Study

The company offers domain name registry services that

operate the authoritative directory of .com, .net, .cc, .tv, and

.name domains, as well as the back-end systems for

various.gov, .jobs, and .edu domains.

The company also provides network intelligence and

availability services that provide infrastructure assurance to

organizations comprising distributed denial of services,

protection services, security intelligence services, and

managed domain name systems.

Founded in 1995 and is headquartered in Reston, Virginia.

A global leader in Internet Infrastructure

Services


A Risk Based Approach to Advanced Controls

Detect

Control

Defects

Analyze

Findings

Implement

Corrective

Actions

(AC/ERP)

Monitor

Application

Controls

(OAC)

Scope

Application

Controls

Sample

ERP

Data

Manage

Exceptions

Setup

Mitigating

Controls

(CC/PC/TC)

Risk Advisors/

ERP Managers/

Control Owners Risk Advisors/

Control Owners

Control

Owners/

ERP

Managers

Establish

Test

Environment

DataProbe Analytics

Controls Catalog Controls Workbench

Advanced

Controls

Experts/

ERP Managers

Advanced

Controls


Mitigate Risk in Order to Cash Process

Restrict Sensitive Access: Unauthorized access to AR setup options could result in frauds or

errors in recognition of Revenue, incorrect AR aging, DSO metrics, incorrect revenue recognition,

and other issues.

Segregate User Access: Segregate access to enter sales orders and release credit holds. Can lead

to incorrect orders and billing, creating a risk to customer satisfaction and trust and could result in

Revenue Leakage.

Monitor Credit Memos: User access to transactions and customer master can lead to incorrect

billing and aging of customer accounts, creating a risk of Revenue Leakage and could result in

over or under stated Revenue Account.

Enforce Tax Rules: Require the Tax code field to be mandatory for Non-US customers. Can cause

incorrect VAT calculations if tax code is left null or invalid tax code is assigned. Can result in

regulatory penalties.

Alert when Receipts mismatch Transactions: Monitor when amount of receipts used to clear

Transactions are different. Incorrect cash application could result into incorrect aging and

incorrect Revenue Account balance.

Prevent Unauthorized Order fulfilment: Monitor changes to Sales Order and stop order fulfillment

when unit of measure or discounts are changed.

Case Study


Implementation Approach Case Study

Assess

•Identity data-sources, business objects, attribute era, frequency, patterns and model logic

•Create object catalog, conditions and patterns and transaction exceptions using DataProbe™

•Confirm Findings and Gap.

Design

•Map data source objects catalog to OAT (Protégée)

•Define transaction model logic in terms of data-sources, business objects, attribute era, frequency, and patterns

•Confirm Design. Identify out of the box vs custom objects for install

Install / Configure

•Install Advanced Controls platform

•Configure data-source, objects, and models

•Unit Test and Verify Results

Test / Train

•Train users, managers, and administrators

•Conduct user acceptance testing

Deploy

•Setup production system

•Support administrators as needed


Is Your ERP Leaking Cash?

Introductions

Top Procure to Pay challenges in ERP

Overview of Payable and Purchasing Controls

Advanced Controls Analytics

Case Study

Q&A

Agenda



Introductions




Case Study

Q&A

Agenda


Leader in Risk Based Enterprise Controls Q & A

One-on-One with Experts Download DataProbe

Follow FulcrumWay on LinkedIn for ERP Risk and Controls

FulcrumWay - Plug Your Top Revenue Drains in Order to Cash Cycle

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