Transcript Jerry Held
Corporate Governance: Good intentions are not enough Punitive consequences …personal liability, even for negligence Corporate Governance is a Burning Issue U.S.: The Sarbanes-Oxley Act (June 2002) requires you to: – – – Meet aggressive deadlines for financial reporting Be personally liable for accuracy of your numbers Face steep fines, jail time, de-listing of your company even for negligence in reporting (not just for willful deception) International Accounting Standard to reconcile geographical differences in reporting by 2005: – – – – European Union, Australia, Singapore to adopt IAS U.S. FASB and IAS letter of intent to align Streamlined reporting process, especially for multi-nationals Align external and internal reporting Board Oversight Is Only The Tip of The Iceberg From the board room to the cubicle – it’s everybody’s business Requires strategic alignment and operational efficiency at all levels Set Up Your Business Processes For Compliance Ensure you have access to accurate, timely and relevant information Establish robust processes to ensure failsafe internal controls Enforce policies and procedures,and ensure trained staff Comply efficiently, not at the cost of profit Business Systems Bring Efficiency To Compliance Automation reduces risk of errors Prevents circumvention of controls Reduces processing costs Captures the state of your business at any time Provides vehicle for training and education on time at low cost Let’s you monitor skills and awareness of your staff Business Systems: the “Engine” of Solid Business Practices Visibility: reduce risk through timely, accurate, relevant, consistent information Control: enforce policies and procedures through automated processes Efficiency: automate to maximize speed and accuracy Good Governance Requires Best Practices Across Your Enterprise Visibility Control Efficiency Visibility Access to Timely, Accurate, Relevant Information Visibility • Gain an accurate view of purchases, payments and outstanding commitments • Maintain a single, global view of entire company’s financial activity • Timelier access to accurate workforce information worldwide • Visibility into sales pipeline, customer satisfaction, market shifts, etc.. Control Affect Change Quickly Control Track suppler performance and ensure that the supply base delivers according to purchasing business goals • Incent best • Define roles and behavior with responsibilities for automated procedures and set incentive measurement criteria for compensation compliance • Establish, document, communicate, policies & procedures. Enforce training requirements for staff at all levels Efficiency Minimize Administrative Overhead Costs Efficiency Purchase product traceability to minimize the risk of product recalls and warranty services costs • Centralize finance and administrative functions • Make education available through multiple channels • Repeatable and scalable marketing, sales, and customer service processes Corporate Performance Management: Complete and Integrated Business Intelligence Visibility Control Real-time enterprise view of your operations Establish measurements, set targets, and execute Efficiency Automate and integrate Information Technology: Single Source Of Truth Visibility Control Centralization for consistency of information Workflow enforces best practices Efficiency Automate to lower costs and minimize errors Close Your Books With Confidence Reduced Close Time 521 Ro chester Inst. 2 P aradigm Wireless 28 Westpac 5 6 15 M cData 4 21 M illipo re 49 B ritish A merican 0 EBS 11i 40 Pre EBS 11i 20 40 Days to Close 60 Corporate Governance You Are Accountable To your shareholders or constituencies To your CEO and Board of Directors To your employees To the SEC or other regulatory agencies Oracle E-Business Suite Best Practices Across Your Enterprise CPM Visibility ERP Control Business Systems Information Technology Efficiency Oracle Internal Controls Manager: Oracle Internal Controls Manager is a comprehensive tool for CXO’s, controllers, internal audit departments and public accounting firms to use to document and test internal controls and monitor ongoing compliance. Oracle Internal Controls Manager Comprehensive policy and compliance management solution The application assembles the components necessary to document, test and monitor internal controls and compliance. It provides users with an easy-to-use workbench from which you can organize, execute and manage the audit work including the following activities: Define the business processes of the enterprise Manage process documentation Manage the Process Risk Library Ensure/Test Segregation of Duties Map the Organization Structure Manage Business Process Variations Manage the Audit Process and Projects Submit Audit Findings Issue Audit Reports Survey Management Assessment of Internal Controls Provide Employee and Stakeholder Feedback Review Compliance Status of Financial Statements Review Reconciliation Status of all subsystems Review the overall compliance status Review Policy Compliance Oracle Internal Controls Manager Workflow Management Tool Workflow Document Management Tools Files System Configuration Tools iSetup Survey Tools iSurvey Procedure Documentation Tools Tutor Process Control Limits Performance Mgmt Sampling and Statistical Tools Audit Manager Reports Project Management Tools Project Collaboration Oracle Internal Controls Manager Oracle Tutor: Your Policies, Your Procedures offers procedure authoring, automatic flowcharting, and rolebased publishing, and comes with pre-defined models. Oracle Performance Framework: Your Processes, Your Time constantly monitors your processes and notifies you of exceptions Oracle Project Collaboration: Your Progress, Your Resolutions provides visibility and control needed to deliver projects an communicate among the project team. Oracle Internal Controls Manager Home Page – Access relevant daily information and initiate actions Process Area – Document processes and relevant surrounding info Audit Area – Define standard work programs for audit of specified business processes, audit approaches, and LOBs Management Area – Plan resources and skills needed for the audit department Setup Area – – Set audit schedule for business processes Assign business processes to organization units Compliance Workbench and Officers Reports – – Match Processes with policy and standards Publish audit results and compliance data to officers Access relevant daily information and initiate actions <<Audit Manager Slides>> –Access relevant daily information and initiate actions Document processes here Navigate the Process Hierarchy top down Assign processes to the organizations that run them Focus on high risk areas Ensure risks are mitigated