Thursday, January 12, 2023

Sap Governance Risk And Compliance

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Sap Grc Process Control

SAP S/4HANA Cloud 2202 Governance, Risk, and Compliance | Katrin Deissner | January 2022

Unlucky SAP GRC Access Control, which allows to have control on the management of accesses, Process Control makes it possible to manage a master data of organizational controls. Generally speaking, it allows to define an ICS Internal Control System based on international frameworks, for example, the COSO

How many controls are there in a company? There could be many for various reasons:

  • Internal policies
  • Improve costs management
  • Increase clients satisfaction

The business model defines how to reach the defined objectives, for example the one mentioned above. Clearly these objectives have to relate to normative bonds defined by governments or decided by the company itself

In every business, inevitably, there can be obstacles to surpass or control in order to meet the defined strategic objectives. The system SAP Risk Management focuses on this. Identifying and evaluating these risks.

  • Is there a methodology for managing risks in the company?
  • Has an organizational Risk policy been defined?

The tool allows to control various risk management phases:

  • Risk Planning
  • Investigation
  • Performance Analysis

What Are Sap Security And Grc

The manufacturer SAP has already recognized that compliance and risk concerns alone are not enough to address the need for SAP cybersecurity. The following topics also always come into play here:

  • real-time threat detection and anomaly detection
  • secure configuration
  • timely patching
  • and data protection

All of them become the focus of attention. Digital enterprises today need to close the existing gap for cybersecurity and data protection in their current business models. In addition to existing governance risk and compliance models, organizations need intelligent, automated, and embedded cyber and data security for SAP.

Sap Grc Access Control

This is one of the most installed and known GRC systems. This component is made up of four modules:

  • Access Risk Analysis
  • Business Role Management
  • Access Request Management

Once its installed, usually on a separate machine, all the other GRC systems are contained: Process Control and GRC Risk Management, which have to be licensed in order to be used.

In the past this solution was developed in the ABAP language , however later on, after the acquisition by SAP, it was totally re-written in JAVA . From release 10 onwards, to the latest version SAP has completely re-written the application in ABAP

Given the history of the product, also the names of the various components have changed over time. Here are terms that can help understand of what version were talking about when looking at documentation:

  • Access Risk Analysis
  • Risk Analysis and Remediation
  • Compliance Calibrator
  • Risk Terminator
  • Emergency Access Management
  • Super User Privilege Management
  • Firefighter
  • Business Role Management
  • Enterprise Role Management
  • Access Request Management
  • Compliance User Provisioning
  • Access Enforcer
  • Here is what the components allow:

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    Who Is Responsible For Grc

    The responsibility for establishing and maintaining GRC plans and processes usually falls to the top financial and compliance executives and their teams with support from IT, HR, and operational team leaders across the organization. However, its one thing to devise an excellent GRC strategy for it to be effective, it must be successfully embedded and integrated into the daily work activities across the entire business.

    The best GRC and risk management strategies take a people-first approach so that all employees have a vested interest in helping to ensure the sustainability of the business. Reporting on the importance of preparing workforces for GRC technologies and digital transformation, a Wall Street Journal article notes: As organizations prepare and work through a digital transformation, its vital to create a culture in which everyone is tech-savvy, and risk is everyones business.

    Governance Risk And Compliance With Sap S/4hana Cloud 2105

    Implementing SAP Governance, Risk, and Compliance

    This blog provides you with the latest and greatest innovations that our SAP S/4HANA Cloud 2105 release has in store for you in the area of Governance, Risk, and Compliance . In addition to the innovations illustrated in my last blog on Governance, Risk, and Compliance with SAP S/4HANA Cloud 2102, with this release, you can benefit from more than 30 commonly used controls from the new Best Practice Content for SAP Financial Compliance Management and enjoy our brand-new embedded analytics app for handling trade compliance blocks in SAP S/4HANA Cloud.

    Watch my video to get a quick overview of our SAP S/4HANA Cloud 2105 highlights for Governance, Risk, and Compliance:

    This blog covers the following topics:

    Financial Compliance

    If you are interested as well in what is new with Finance in SAP S/4HANA Cloud 2105, you can check out the blog by Ulrich Hauke.

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    Electronic Invoicing And/or Reporting For Chile Colombia Bulgaria Qatar And Saudi Arabia

    Regarding electronic invoicing, there are two examples of innovations that I would like to mention: First of all, with the 2208 release, we introduce e-invoicing for Colombia for which a new country version is being delivered with 2208. Included in the scope are customer invoices, contingency documents and supplier invoices .

    Contingency documents are used in cases where documents cant be sent to the tax authorities prior to sending billing documents to the customers . In these cases, it is nevertheless possible to send billing documents to customers and after the fact, you can still declare them to the Colombian tax authority.

    In addition, for Saudi Arabia the existing handling of e-invoices has now been enabled in the SAP Fiori app Manage Electronic Documents, with release 2202.2

    Fig. 6: SAP Fiori Cockpit of SAP Document and Reporting Compliance Manage Electronic Documents app for Colombia

    If you are wondering which other countries apart from Colombia and Saudi Arabia have been enabled so far for e-invoicing with the SAP Fiori app Manage Electronic Documents, these are: Italy, Saudi Arabia, Spain, Australia, Austria, Belgium, Denmark, France, Germany, Ireland, Luxembourg, Netherlands, New Zealand, Norway, Poland, Singapore, Sweden.

    For more details on the functionality of the other countries, please check out the SAP Help Portal.

    More Information

    What Is Grc Software Able To Do For My Company

    The difference between GRC software and manual compliance is like the difference between building a sophisticated radar system, and hiring people to look up at the sky and write quarterly reports about what planes theyve seen. GRC programs continuously monitor and log access to data and roles, instantly informing administrators of issues something document-based teams cant do.

    For example, if theres a Segregation of Duties conflict where a user has a combination of roles that could violate compliance policies, the computer can spot it in minutes. On the other hand, a manual compliance process could take months. GRC software also automates much of the reporting process, which enables organizations to use more current data and provide deeper analysis at a fraction of the workload.

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    Increasing Complexity And Regulatory Pressure

    Companies experience an increasing pressure to document and validate risks and compliance. Technological as well as regulatory demands increase the complexity regarding governance, risk & compliance.

    SAP GRC offers a complete universe of tools to optimize governance in any SAP landscape fully interacting with the existing rights management. This way the tools recreate control and overview of the challenges and processes connected with GRC across all the underlying systems, business units, time zones and country borders.

    SAP GRC can uncover and avoid conflicts of rights during billing, orders, document access and can control identities, data access, geographical limitations, mobile access etc. SAP GRC also provides intuitive solutions to work with the European Data Regulations, GDPR, which results in heavy demands on the handling of sensitive personal data as of May 2018.

    Sap Grc Process Control And Fraud Management

    SAP S/4HANA Cloud 2108 Governance, Risk and Compliance | Katrin Deissner | August 2021

    SAP GRC Process Control software solution is used for managing compliance and policy management. The compliance management capabilities allow organizations to manage and monitor their internal control environments. Organizations can proactively fix any identified issues and certify and report on the overall state of the corresponding compliance activities.

    SAP Process control supports the complete life cycle of policy management, including the distribution and adherence of policies by target groups. These policies help organizations to reduce the cost of compliance and improve management transparency and enables organization to develop compliance management processes and policies in business environment.

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    System Demo Of Grc Asset Service

    If you would like so see what the GRC Asset Service looks like in the system, please have a look at this demo recording:

    Video 3: System demo illustrating the new GRC Asset Service

    Please note that what is currently available is the minimum viable scope which is planned to be extended over the course of the next quarters.

    How Can Aglea Help You Define And Improve The Process Of Sap Systems Governance

    We carried out more than 30 installations of SAP GRC Access Control also Process Control and Risk Management, even though the latest are still not used much, at least in Italy.

    • Which architecture should you adopt? Especially with heterogeneous systems.
    • Some tool functions that SAP GRC puts at disposal have to be configured in precise cases. An incorrect configuration of the tool might lead to having many false positives or even false negatives. Especially when speaking about the access control suite.
    • How close is your structure of company controls to the model defined by SAP GRC Process Control?
    • How long does it take for the implementation and especially for the ordinary maintenance of the tools?
    • How should you start? Every tool right away or a gradual approach? In which order?

    You think that GRC Access Control fixes all user profiling problems? This might not always be true and its important to know which are the limits of this tool

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    Sap Grc Auditing: Why Its Crucial For Your Organization

    Enterprise Resources Management is an integrated system that stores all business transactions in a unified database. The ERP system is typically a central part of the SAP environment. SAP solutions are configured to accomodate a certain business environment, codifying the roles and responsibilities of all employees within the organization.

    You can audit your SAP environment using two modules provided as part of SAP GRC: SAP Process Control and SAP Risk Management. SAP audits can assess the risk that sensitive business data might be accessed or manipulated by multiple users in an enterprise. Fraudulent, inaccurate or invalid data entered at any point in your business processes may affect the data accuracy of the entire system.

    Auditing capabilities in GRC enable auditors and administrators to:

    Bringing It All Together: Building A Risk Intelligent Consumer And Industrial Product Enterprise

    GRC Tuesdays: What really is SAP Governance, Risk, and Compliance (GRC ...

    Consumer and Industrial Product companies are making strategic acquisitions to diversify their portfolio, reduce cost through vertical integration, or increase revenues by expanding into new markets. As these companies partner with vendors globally, acquire production plants and define new channels to attract customers, there is an increased emphasis on delivering efficient business process that comply with Financial and regulatory requirements. An integrated approach to Governance, Risk and Compliance should be considered essential for streamlined risk management, process control, access control and improved business performance.

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    Financial Operation Monitoring With Sap Financial Compliance

    Video 2: With the first version of SAP Financial Compliance Management, compliance specialists can detect issues in the implementation of controls and create remediation plans.

    The following use cases are currently supported by the new scope item:

    • G/L entries entered on weekends:Accounting transactions are usually processed during normal business hours. When this is done over weekends, this should be investigated as it raises concerns over the validity of respective journal entries.
    • Recently created G/L accounts:To confirm authenticity, newly created general ledger accounts should be investigated as unapproved or invalid accounts could be used for fraudulent or other suspicious activity.
    • General journal entries posted to prior fiscal period:According to SOX regulations, general journal entries to prior fiscal periods should not appear and should therefore be investigated.
    • Duplicate payments in the selected period:Duplicate payments can occur as a result of fraudulent or non-fraudulent errors, such as duplicate vendor invoices.
    • Blocked sales orders which have been released manually:These are sales orders where the customer credit limit has exceeded and which have been blocked because of this and which have afterwards been released manually

    More Information

    Enterprise Application Integrity Services

    As organizations increasingly rely on an expanding application ecosystem, including core enterprise resource planning systems and technologies making application access available at the fingertips of users anytime and anywhere, globally integrated business processes have become more vulnerable to fraud, cyber-attack and other incidents. ERPs today house much more than just financial information more than ever, threats to ERP continuity or lost ERP data threaten the business. Down load our application security overview and find out how Deloitte helps clients secure their ERPs, monitor them to stay vigilant and develop resiliency plans to recover from incidents.

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    Expert Insight By Scott Goolik

    Organizations have a huge number of agents involved in accessing and processing information. Workers, business partners, clients, providers and customers all need access to some potentially sensitive information, including:

    • Invoices

    Stakeholders also need to be able to perform business processes such as:

    • Ordering new stock
    • Paying vendors
    • Counting inventory

    But someone with too much access or the wrong combination of privileges can violate compliance or pose an unacceptable risk. If a user can create and pay a vendor, for example, they can steal money. If the admins who run a hospitals server can access EPFile, they can cause a confidential information breach, potentially leading to big claims and substantial fines, complex corrective measures, damage to reputation and increased regulatory scrutiny.

    GRC refers to the policies and procedures companies use to address these problems. Traditionally, it has been done manually by randomly sampling internal data. Compliance teams pour over documents and transactions, compile information into spreadsheets, make reports and recommend changes.

    These manual compliance techniques are incredibly time consuming, and miss a lot. Companies can spend thousands of hours on GRC, and still see just a small fraction of whats happening internally. Only part of the data is examined, which means individual cases or even patterns of fraud or non-compliance can sometimes slip past auditors and internal controllers.

    New Scenarios For Electronic Invoicing For Poland And Australia Available

    SAP S/4HANA Cloud 2111 Governance, Risk and Compliance | Katrin Deissner | October 2021

    Governments are going digital and businesses need to keep up with the pace of the digital transformation. Here are a few recent innovations addressing these growing needs. SAP Document Compliance supports creation of electronic documents to fulfil the B2G e-invoicing requirement in public procurement in Poland. SAP Document Compliance is an integrated end-to-end process to create electronic documents. You use the Peppol Exchange service to exchange electronic documents between your company and your business partners using the Peppol network.

    Fig. 2: With SAP S/4HANA Cloud 2105, creation of electronic documents to fulfil the B2G e-invoicing requirement in public procurement in Poland

    As part of the overarching Digital Business Plan, e-invoicing has recently been made mandatory for federal procurements by mid of 2022 in Australia and this requirement is addressed via SAP Document Compliance.

    SAP Document Compliance is an integrated end-to-end process to create electronic documents. You use the Peppol Exchange service to exchange electronic documents between your company and your business partners using the Peppol network.

    More Information

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    Tasks And Task List Templates

    With the new release, compliance specialists now benefit from a workflow-driven process during the issue and remediation phase as we introduced the concept of tasks and task list templates. This means that the issues have now tasks assigned to them and these tasks are based on context-sensitive, predefined task list templates which can be tailored to the unique requirements of your organization. And as you can imagine this allows you to process your issues in a highly structured, consistent, and of course also efficient way.

    Lets take an example to make this more concrete: One of the predefined controls in the business content that SAP Financial Compliance Management offers for SAP S/4HANA and S/4HANA Cloud, is a control to detect duplicate invoices. Now, lets imagine that we want to find all duplicate invoices in our SAP S/4HANA Cloud system within a certain time frame with certain search criteria. After executing the control by triggering a so-called a work package run, SAP Financial Compliance Management comes up with a list of issues which match our search criteria. In our example, this is a list of duplicate invoices.

    Until this release, we now had a list of issues with which we could do some basic actions, like categorizing them by means of priorities and issue categories, assigning an owner and setting a conclusion, but the actual issue processing and the remediation part was not yet there. So, the end-to-end process, was not yet complete.

    More Information

    Enterprise Risk And Compliance

    Image Source: SAP

    This is an enterprise risk management solution that supports identification, analysis and monitoring of risks, letting you extract detailed insights into risk drivers and their impact on your operations and business reputation.

    The solution lets you manage risk using the following steps:

    • Plan your risk strategyidentify business activities that involve risk, establish a hierarchy of business risks, assign risk owners and risk appetite and define responsibilities.
    • Identify risksidentify the links between risks and events, create a survey and document suspected root causes and risk consequences. Keep track of your mitigation activities.
    • Analyse risksperform qualitative and quantitative risk analyses to understand potential risks, how likely they are to occur, and what impact they might have.
    • Monitor data in real timeautomate risk monitoring, using real-time application data from both internal and external systems.

    2. SAP Process Control

    Image Source: SAP

    This solution lets you use real-time insights to reduce risks by associating controls. Implement continuous monitoring and streamline testing of controls, along with the following steps:

    3. SAP Audit Management

    Image Source: SAP

    Learn more in our detailed guide to SAP Audits

    4. SAP Business Integrity Screening

    Image Source: SAP

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