GRC ONLINE TRAINING

Contents:

Time Section Topics

Introduction Welcome
SAP Security Overview
SOX Overview
Access Control Solution Overview
Compliance Calibrator Overview
Rules Architect

Risk analysis & Informer

Mitigation Controls

Alerts
Compliance Configuration
Firefighter Overview
Access Enforcer Overview

Module Breakdown

Process Walkthrough

Role Expert Overview

Module Breakdown
 Example R/3 Role Design model

Business Processes Security Design Role Mapping

Process Job: Org Unit:

General category Division
For jobs
Sub-Process Role

Sub-Process Role Position:

Composite performs
Role: Role
Activity one or Employee
performs more roles
one or more
Activity transactions

Activity
Transaction:
Workstep SAP worksteps

Workstep

Workstep
 SAP Security – The major elements of the SAP authorization concept
 
 Users
Composite Profiles
Simple profiles
Authorization Objects
Authorizations
 
 Fields Users User Profile

Values (Activities, Organizational elements)

 Transactions  Composite Composite
Profile Profile

Roles Simple Simple

SAP Security Profile Profile

To address this complexity and flexibility, Authorization Authorization

SAP has developed a solution called

Object Access
SAP GRC-Access Controls Suite. and Objects Objects
Restrictions

We will guide through how CC Transactions Transactions

addresses some of these issues.
 Securing Financial Applications Systems for SOX Compliance

SOX….

The Sarbanes-Oxley Act of 2002 also called as Public Company Accounting Reform and
Investor Protection Act of 2002 and commonly called SOX or Sarbox in response to major
corporate scandals like Enron…………..

Enron Corporation was an American energy company based in

Houston, Texas. Enron figures in late 2001 –

Enron employed around 22,000 people (McLean & Elkind, 2003)

Claimed revenues of $111 billion in 2000

Fortune named Enron "America's Most Innovative Company" for six consecutive years
At the end of 2001

It was revealed that its reported financial condition was sustained substantially

by institutionalized, systematic, and creatively planned accounting fraud

Enron filed for bankruptcy protection in the Southern District of New York
Some interesting facts
 Present access and authorizations approach

♣IT does not own the responsibility for proper segregation of duties. They can’t understand hurdles
on business side, as they lack the collaboration tools and language to efficiently collaborate with the
business owners.

♣Lines of the business managers are responsible for SoD, but they lack the technical depth to
manage user access, so they rely on IT

♣Internal auditors are trying desperately to stay on top of the SoD issue. However with manually
maintained spreadsheets listing the access and authorizations of all employees, contractors, and
partners and so on, they can only perform a very limited audit at a very high cost.
Sarbanes Oxley and SAP - Top 7 Control Deficiencies in SAP
1. Segregation of Duties - segregation of duties as the most important point of control focus or
deficiency.

2. Inconsistent Business Process Procedures - Business procedures not matching the actual process is
another problem area in many SAP implementations.

3. Unsecured Customized Programs - Many customized 'Z' transactions or 'Y' transactions built in to
suit the business process.

4.Unauthorized Access to SAP BASIS - Many companies make the mistake of giving access to
sensitive BASIS transactions like SE13, SE38, SM49, SU10, SU12, SM13, SC38, SM59, KE54 etc
to users in production.
Such unrestricted access can lead to a potential control deficiency under Sarbanes Oxley.
5. Unrestricted Posting Periods - Allowing unrestricted access to open Posting periods in SAP can
result in unauthorized entires in previous open periods. This can become a severe control
deficiency under SOX
6. SAP Access to Terminated Employees - SAP access had not been revoked for employees who
had been terminated. This can potentially lead to control deficiency
7. Database and OS Hardening - The data in SAP sits on databases like Oracle etc and SAP Portal
as such runs on an operating system. If databases and operating systems are not hardened, the
whole SAP environment is put at risk.
 GRC – Governance Risk Compliance

SAP Compliance Calibrator

Business Challenges
- Identifying risks arising through user access privileges.
- Knowing when users have executed transactions that constitute a risk
- Developing solutions for risk management and control.
- Stopping risk from being introduced into the production system through change updates.
- Prohibiting and controlling access to critical basis, developer and sensitive
business transaction.
- Ensuring that mitigating controls exists for user access risks and are executed.

IT / Security Challenges
- Stopping risk from being introduced into the production system through change updates.
- Prohibiting and controlling access to critical basis, developer and sensitive
business transaction.
IT Based Antifraud Controls - SOD & SAT

Segregation of duties in applications SOD –

The basic premise of segregation of duties is that users should not be in a position to initiate
and authorize their own transactions.

Modern IT applications ERPs like SAP, Oracle Apps, J D Edwards, Peoplesoft can be configured
based on roles. .
Access to specific transactions in the system can be restricted based on user roles and profiles.
Segregation of duties in applications can act as a major antifraud controls and lead to better
SOX compliance.
Sensitive Access Controls SAT –
SATs coupled with SODs can act as the foundation for IT based antifraud controls.
The other important antifraud control is restricting user access to sensitive transaction in the system.

From an IT perspective users have access to a lot of information such as payroll data, balance
sheet, profit and loss account etc.

This sensitive information can be misused. It is therefore important to restrict users access to
this sensitive information in applications.
MM SoD Conflicts – Sample data
SoD Controls (Functions that should be segragated) Risks

RISK LEVEL

A user could post or change a fictitious or incorrect goods receipt

and set up a fraudulent automatic payment or create a fraudulent
Post Goods Receipt and Post Payments check. H

A user could post or change a fictitious or incorrect goods receipt

and post a fraudulent payment or clear the invoice to hide the
Post Goods Receipt and Process Outgoing Payments deception. H

A user could post or change a fictitious or incorrect goods receipt

and create/change an inventory document/count to hide the
Post Goods Receipt and Process Inventory deception or clear the inventory count to hide the deception. H

A user could post or change a fictitious or incorrect goods receipt

and create/change an inventory document/count to hide the
Post Goods Receipt and Process Inventory Documents deception or clear the inventory count to hide the deception. H

A user could post or change a fictitious or incorrect goods receipt

and then use a goods issue to hide the deception. The vendor
Post Goods Receipt and Goods Issue would be paid for the excess recorded receipt. H

A user could create or change a fictitious receipt and create/change

Post Goods Receipt and Process Materials a material document to hide the deception. H
Compliance Calibrator Key Terms


Business Process – Used to classify risks, rules and rule sets by business function e.g. Order to Cash, Purchase to
Pay, Record to Report are all types of Business Processes. All risks and functions are assigned to business functions.



Function - Identifies the tasks an employee performs to accomplish a specific portion of their job responsibilities. This can be

analogous to a role, but more often a role comprises multiple functions.

 
Action- Known as Transactions in SAP. To perform a function, more than one action may be required to be performed.

 
  Permission – Object in SAP, which form as part of Actions.


Risks – Identify potential problems your enterprise may encounter, which could cause error or irregularities within the

system.


Rule Sets –Ccategorize and aggregate the rules generated from a risk. when you define a risk, you attribute one or more rule

sets to that risk. Similar to business process.


SoD – Segregation of Duties, are primary internal controls intended to prevent, or decrease  the risk of errors or
regulatory irregularities, identify problems, and ensure corrective action is taken. This is

achieved by assuring no single individual has control over separate phases of a business transaction.
.
Definitions – Function, Business Process, Action,
Permissions & Activities

1
2
3

1. Function
5
2. Business process
3. Action
4. Permissions
Activities
 Process Overview
SAP Compliance Calibrator

Role Request Role Analyse & Build Risk Approve Deploy

Maintenance change Approve Role Change Analysis Change Change
(preventative) change

SAP CC is used to identify SOD conflicts before the change enters production. This allows control leads to
reject the introduction of risk or assign / implement a mitigating control before risk is apparent.
Note: Rules have to be pre-defined before Risk Analysis is performed.

User Request Identify Business Update Execute

Provisioning Access Risks Approval user Controls
(preventative) ………….

Deeper understanding of risks inherent in the security design allows business approvers to make a proactive choice
as to whether they allow a user to have an SOD risk or critical transaction.

Security Analyse Analyse Alert Alert

Controls SOD Critical SOD CT
violations usage
(detective) conflicts …..
….. Transactions…..
SAP CC is used to execute security controls for period review and approval for SOD conflict and critical
transaction risks. The alert monitoring can also be used to identify business or control leads when a SOD violation
occurs or a critical transaction is used.
 Rules Architect – SOD risk

SAP Compliance Calibrator

Rules are created in compliance calibrator based on the “risks” you define.

Rules are logical constructions composed of a circumstance or condition, and the appropriate response to
that condition. This is commonly represented as an IF-THEN statement.

IF
Employee X can Create a Vendor &
Employee X can Authorize Pay vendor
Then
Employee X has been granted High Risk Conflicting Roles

This is an example of a SOD risk.

Compliance
Risks Rules
Calibrator
 Rules Architect – The Rules Library

SAP Compliance Calibrator

The core engine of SAP CC contains a rules library that maintains the risks for SOD conflicts. This library will contain
conflicting transactions, grouped into functions, including the object and activity settings and runs to 1000s of records.
For each identified risk the rules need to be configured so that the risk is properly recorded, in essence this means the removal of false
positives. False positives are identified when at the object level potential risk is not realized e.g. the action is to read only.

Building rule sets

1. Set up functions (groups of activities
that users perform to carry out their role)
by mapping transaction activities.
2. Map two or more functions
together to define a risk
3. SAP CC creates rules based on the
risks which are used for risk analysis
reporting and alert monitoring.
4. Business process can also be
defined and mapped to risks for ease
of reporting e.g. Finance Accounting.
5. Multiple rule sets can also be set
up to act as reporting filters, version
control and other uses.
Rules Architect- Key Drivers
SAP Compliance Calibrator

Building rule sets can be complex and time consuming. Typically three distinct
roles and skills are involved.
Internal Controls Expert
 
Provides information on SOD risks, criticality and represents business (process) owners in decisions to mitigate or remove
risks.
SAP Functional Expert
 Internal
Provides expertise on the business Control
process configuration in SAP , knowledge Expert
on objects and activity values. Helps to set
the configuration data for the rule set
library. Helps identify false positives.
SAP CC Expert
 Rules
Provides knowledge on Generation

rules setting in SAP CC SAP SAP
performing mass upload changes Functional CC
and risk analysis.
Expert Expert
Risk Analysis
SAP Compliance Calibrator

Once the rule set has been defined and implemented risk analysis can be performed to identify the SOD
conflict and critical transaction risks in the staging and production system.

Risk analysis can be performed at the user or role level. Risk Analysis and remediation is most efficient when
a structured authorizations concept is implemented that maps roles to job and people. In these
circumstance remedial efforts correct risks for large groups of users.

Risk Analysis can be performed:

1. During the project lifecycle before users

are allowed in the production system.
2. Before each change request for role
maintenance is deployed to production.
3. Before provisioning exceptional roles
to individual users
4. To execute periodic security controls.
Risk Analysis – Types of risks

Segregation of Duties (SoD) risk

A combination of two or more actions or permissions that, when assigned to a single employee, create a vulnerability. That is to say, in the
case of two conflicting actions an employee may have permission to perform one of these actions, but not both.
Critical Action risk
Certain actions are, by their nature, inherently risky. Any employee who has permission to perform one of these actions automatically poses
a risk. Defining a critical action risk ensures that any employee assigned this permission is identified by the risk analysis process.

Critical Permission risk

Just as some individual actions can be critical, the same is true for some permissions. Defining a critical permission risk ensures that risk analysis
identifies any employee who has been assigned an action that includes a potentially risky permission. The severity of a risk can be categorized as
either:
•Low
•Medium
•High
•Critical
You use the Risk Level to categorize risks—and the rules they generate—by severity. What determines, for example, a critical risk is according
to your company policies.
 Informer
INFORMER allows a appropriate user to access specific reports. In addition to the default report formats, there are specific user-
selected focus areas available on many of the reports.
Informer tab report types include:
  
Management View- Can view reports in the following types: “Risk Violations”, “Users Analysis”, “Role Analysis”, “Comparisons”,

“Alerts”, “Rules Library”, “Controls Library”
   
Risk Analysis- Performed to see if any User, Role, HR Object or Organization has access to two or more conflicting actions.

   
Audit Reports- Provides report headings covering different aspects of the enterprise. Each Audit report menu item contains links

 to reports that may be user modified to fit needs requested. 
 
Security Reports - Provides an access point for reports on every aspect of product and enterprise security compliance issue.
   
Background Job - Allows SoD conflicts to be analyzed for a large number of Users, Roles, HR Objects or Organizations.
 Informer

Compliance Calibrator provides Interactive visual analysis in the form of Bar charts, Pie Charts and Line Charts

By clicking upon
a certain chart
area, detailed
statistics are
accessed
 Informer
SAP Compliance Calibrator
You can generate reports for Users, User Groups, Roles, Profiles, HR Objects and Organizational Levels
Mitigation Control
Mitigation Controls- Rather than remove the cause of the risk, you may want to control certain risk violations that you want available to specific users, roles,
or profiles.

Monitor ID - The ID of the User who is assigned as a Monitor, who is assigned the specific Controls.

Where risks are accepted in the system, a mitigating control should be implemented and executed. An example is a supervisory review and sign off.

SAP CC gives you the functionality to document the mitigating controls for each risk. Once documented and assigned to a Monitor the tool can be used to track
execution of the control or non compliance.
Many clients will have separate cross-enterprise process controls software and we suggest three options for implementation:
1) Simplest option, identify risk as controlled. Risk is removed from risk reporting.
2) Associate the risk with a mitigating control in an alternate repository e.g. process control software.
3) Fully document the mitigating control within the SAP Compliance Calibrator.
A choice also exists on who to give responsibility for maintaining data in the SAP CC tool. This can be centralized in IT or Controls or fully distributed to
the business.

Controls Library option lists all the existing

Mitigation Controls (active/inactive). The
Controls Library displays the Controls by
Risk level and are sorted by:
θRisk
θRisk Level (Low, Medium, High)
θBusiness Unit
θMonitor
θUser, Role, Profiles, or HR Object
 Alerts Monitor

Compliance Calibrator includes functionality which can alert business and controls leads by email when a critical
or conflicting action is executed.

Alerts are available within the following risk areas:

Conflicting and Critical Actions – When a user performs both transactions in an SOD rule or uses a critical
transaction.

Mitigation monitoring – If a Monitor does not execute a control to a specified frequency then an alert will
be generated which is sent to the Monitor and visible to the control leads.

Cleared alerts- When an alert message has been delivered and cleared. Alerts remain as an archived record and
can still be tracked and monitored.
 SAP Compliance Configuration

The configuration Tab is the main starting point for post installation setup.
NOTE: Only an User with Administrative authority can access and use this aspect of Compliance calibrator.
 
The Java Connector (JCO) acts as the integration point between the Java application and the SAP system to be monitored / analyzed.

 
The User Management Engine provides for out-of the box J2EE Administrator profiles to be defined or activated .


The Rule set upload function is used to load the standard rules or customized rule set – e.g. critical transaction codes, critical objects etcetera. These characteristics are the foundations of the SoD

rules.

 
The Workflow component is used to trigger email alerts to named Process Owners within the User Provisioning. It is an integrated part of the Access Enforcer solution.

 
Background Job Scheduling is used for activating Monitoring e.g.. frequency of SoD analysis, Risk Violations.
SAP Compliance Configuration

STANDARD GRC RULESET

SCHEDULING RISK ANALYSIS

Major Activities Walkthrough
Activity
Install and set up SAP CC
Agree security design principles and
dependencies with SAP CC
Confirm Project governance and high
level processes
Master data and functional set up. Test
functionality
Define risks and configure risk rule set
Run Risk analysis
Remedial actions
Mitigate Accepted Risks
Update procedures and security controls.
Transition to live
SAP Compliance Calibrator
Technical installation Core ECC, RFC connections to Modules, Assembly Test.
Establish design concepts and principles for mapping roles to jobs and users e.g. 1
Composite role to each user
Agree business owners, Business Approvers, Control Approvers, Role
Maintenance and UP processes. Define Security controls.
Agree master data definitions; Organization; Business Process; Risk Descriptions;
Monitors and Control Approvers.
Agree SODs conflicts and critical transactions. Categorise risk (H/M/L). Update
risks rule set. Test risks.
Run risk analysis in staging environment. Run Risk Analysis in production
environment. Export reports and update Risk Logs.
Identify and remove false positives. Agree whether to accept or reject risks. Plan
authorization changes, update security design templates and raise change request
to security maintenance. Re-run risk analysis.
Agree mitigating controls for each risk. Agree control owners and business
approvers (execution). Update mitigating controls in tool.
Update procedures to introduce SAP CC as a preventative control and reflect
governance for business ownership.
Train and enable operations staff, business approvers, control owners. Deploy new
procedures. Stabilization support
 Fire-fighter

The Firefighter application allows a user to take responsibility for tasks outside their normal job function, in
a emergency situation.

Enables users to perform duties not included in the roles or profiles assigned to their user IDs.

Provides this extended capability to users while creating an auditing layer to monitor and record
Firefighter usage, providing the capability to review activities used during an emergency situation.
Role 1
Role 2 Firefighter ID 1 User 1
Role 3

Before users can access Firefighter, they must be assigned a Firefighter ID. For each Firefighter ID you
define the following roles.
Owner Owners can assign Firefighter IDs to Firefighters
Controllers Receives email notification and reviews the Firefighter Log report.
In addition the Administrator perform the creation of Firefighter ID and assign authorization roles.
Process Overview
SAP Firefighter

Request Request access Approve Assign Update Review

access to to Production. Request Firefighter Production Control
production account Log

Firefighter enables users to perform duties not included in the roles or profiles assigned to their
userIDs. Firefighter provides this extended capability to users while creating an auditing layer
to monitor and record Firefighter usage.
Through automated emergency access administration, Firefighter tracks, monitors, and
logs all emergency access activities
Example
If the employee who normally works with vendor accounting, but is on vacation or sick leave,
another employee who usually verifies invoices may be assigned a Firefighter ID to perform this task
temporarily.
Benefits of Firefighter are:


Avoid business obstructions with faster emergency response

Reduce audit time

Reduce time to perform critical

tasks 30
Fire-fighter
Firefighter dashboard

Firefighter Log Report

Access - Enforcer
Access Enforcer is a web-based application within J2EE and NetWeaver environments. It is
connected to multiple data sources such as an LDAP and SAP backend system.

Access Enforcer automates the end-to-end access provisioning approval process by combining roles and
permissions with workflow.

When a user requests access to resources for which they do not have permission, Access Enforcer automatically
forwards the access request to designated managers and approvers within a pre- defined workflow. This
workflow is customized to reflect your company policy.

Roles and permissions are automatically applied to the enterprise directories when the access request
are approved.

Access Enforcer automates the role provisioning process within the identity management environment. It
ensures corporate accountability and compliance with Sarbanes-Oxley along with other laws and regulations.
 Access Enforcer

Access Enforcer has four task modules for specific usage. They include:

Requestors The Requestors module is for end-users who are requesting access to SAP and non-SAP
backend systems.

Approvers The Approvers module is for approvers who approve access requests. Approvers can also
request access for other end-users. Approvers include line managers and IT security.

Informer The Informer module is a reporting tool that provides graphical and analytical reports for managers.

Configuration The Configuration module is for Access Enforcer Administrators who define defaults,
workflow, and other attributes that are based on their corporate business processes and policies.
Access Enforcer Module Breakdown
Approver
Access Enforcer provides three standard Approver
types. Depending on your organizational hierarchy
and process, there may be other Approver types
that can be added to Access Enforcer. The standard
Approver types are:
Manager Approver is usually the requestor’s
manager. Manager can review and approve their
workflow stage during the approval process.
Role Owner Approver has the authority to approve
or reject a request. The Approver can put a request
on hold and add additional roles to the request, if
necessary. An Approver can only approve or reject
requests that they own and cannot approve
requests for other approvers unless they are
assigned as a alternate approver.
Security Approver is usually the last approver in a
typical workflow. The Security Approver can
provision access to the target system that has been
requested.
Requestor
As a Requestor, you use the
Requestor module to create
various access requests for an
SAP backend system, non-SAP
system, or other application
(server). There are three types of
Requestors:
Department Member Creates
requests for access permissions or
roles, for themselves or for their
team members
Managers Creates requests for
roles for their subordinates
Approvers Other managers can
also create requests
Informer
Access Enforcer provides the
ability to generate various reports
for the purpose of viewing and
analyzing request approval
activities. Reports are divided into
two categories:
Analytical lets you drill down to
individual role change and access
permission requests.
Chart generates a graphical view
of the request approval
information, which can be used to
analyze various activities.
Access Enforcer Screenshots

Request for Approval List- displays pending

requests assigned to you.

Request Approver Page for a request submitted.

Access Enforcer Walkthrough

1 Makes access Request for specific application,

for which they do not have the necessary roles

SAP
2. Provides Access Request page, which can be set to specific or
multiple data sources (e.g. SAP HR system or non-SAP systems)
to complete the request process Access
Enforcer

3. Submits completed Access request page. This triggers a Workflow process,

which is made up of several pre-defined approval stages and is customized
to reflect the business and security policies and procedures.

4. Receives email notification of access request at each approval stage.

Performs Risk analysis and SOD assessments. Approver
When conflict arises, approver can mitigate the problem or reject the Request.

5. Upon approval, access request is routed to next stage, which could involve the
IT security team for entry to the SAP backend system or application server.
Automatic provisioning to the target system could take place.
Access Enforcer - Benefits
 Role Expert
Role Expert is a solution for compliant enterprise role management, allowing role owners to define,
document, and manage roles across multiple enterprise applications ad enforces best practices,
resulting in lower ongoing maintenance and effortless knowledge transfer
Automatically analyzes roles for potential security risks (audit and SoD issues), tracks changes, and facilitates
approval workflow, eliminating the inefficient back-and-forth exchanges between business managers and IT.

Role Expert provides a complete audit trail, covering role definition, detailed change history, and control test
results and allows SAP security administrators and Role Owners to document important role information that
can be of great value for better role management such as:

Tracking progress during role implementation

Monitoring the overall quality of the implementation

Performing risk analysis at role design time

Setting up a workflow for role approval

Providing an audit trail for all role modifications

Maintaining roles after they are generated to keep role information current
Role Expert
Role Library- Dashboard of all the roles in Role Expert. Displays an interactive graphical interface of the
roles broken down by system landscape, role owner, or business process. It also shows the number of roles
with violations and roles belonging to different role types.
Role designer- Provides you with a step-by-step guide for designing roles across your enterprise. Role
Designer allows you to define:
♣Role Building Methodology
♣Naming Conventions
♣Role Attributes
♣Org. Value Mapping
♣Approval Criteria

Org Level- Maps the

hierarchical structuring of
organization, enabling to
manage roles effectively.

Change history provides you with

an audit trail for all the changes
made to roles within Role Expert
or your SAP system

Mass Maintenance- Allows you

to synchronize the SAP Back-
end systems with Role Expert by
importing roles that already exist
in the SAP system.