Mitigating risk with integrated ERP, HCM, and AI: a case study

January 18, 2023 | 3 minute read
Sid Sinha
VP, Risk Cloud Product Strategy & Mgmt
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Internal audit teams face a tough challenge: They must identify problems before they occur, provide options for resolving them, and strengthen confidence before external audits. This is especially difficult in large, complex organizations. Oracle Fusion Cloud Risk Management and Compliance (Oracle Risk Management) can help. It provides assurances that your risk management, governance, and internal control processes are operating effectively.

DP World shows how Oracle Risk Management really works

DP World is a leader in global, “send-to-end” supply chain logistics based in Dubai, United Arab Emirates. The company spans six continents, employing more than 97,600 people in 295 business units in 78 countries. As DP World adopted Oracle Fusion Cloud ERP and HCM, their audit team saw an opportunity to automate and radically simplify their controls and reporting.

Automate internal controls monitoring

Because auditors operate as an independent function, they can only act as advisors, providing guidance on control requirements such as those for accounting, financial standards, and approval procedures. So, it is up to corporate functions to establish the policy frameworks and manage the implementation.

With the implementation of Oracle Risk Management to automate Access Controls —e.g., for Segregation of Duties (SoD)—and Financial Controls, DP World:

  • Reduced the review effort needed by business process owners to ensure that effective controls are in place (e.g., streamlined certification processes, simplified risk assessments, automated monitoring, and strengthened oversight of General Ledger, Accounts Payable, Accounts Receivable, and Procurement)
  • Accelerated the CFO’s annual sign off
  • Provided the board of directors with simplified, one-click reporting and dashboards for high-risk initiatives

Discover and report on anomalous transactions

Typically, internal audit teams can only sample a tiny fraction of transactions and must manually search for problematic ones. But Oracle Risk Management allows DP World to perform a comprehensive analysis of all transactions, including relevant internal controls that govern them. Exceptions trigger real-time alerts, providing faster detection at far higher levels of automation. Without this AI-based automation, the company might miss these anomalies until reconciliations, which could be at the end of the month, quarter, or year.

Prevent the introduction of new risks

Oracle Risk Management doesn’t just monitor transactions. Crucially, it also monitors the applications generating transactions. In the case of DP World, their Oracle Fusion Cloud ERP and HCM applications undergo continuous monitoring for any problematic configuration changes. IT and implementation teams have confidence that unauthorized changes don’t jeopardize security, data protection, certification of access to sensitive functions, or segregation of duties. Since Fusion Apps are handling high-risk, high-volume transactions, this oversight materially reduces DP World’s net risk.

Conclusion

Oracle Risk Management has been a game changer for DP World. VP of Technology Audit at DP World, Shaytel Patel says: “Automation has become the new norm. Having 100% oversight over our transactions and key controls has opened up a whole new world.” Advanced controls, which satisfy the Public Company Accounting Oversight Board’s (PCAOB) highest standard, give DP World’s internal audit teams the ability to look beyond monitoring controls to focus on more strategic risk initiatives. According to Mohamed Absar, vice president of enterprise systems at DP World, “Leveraging the embedded automation in Oracle Cloud Risk Management was the obvious solution to satisfy and delight our key business and audit stakeholders.”

If you’d like to learn more about DP World’s success with Oracle Risk Management, watch the replay of their event ERP/SCM – How DP World Is Automating and Auditing ERP Security, Privacy and Process Integrity on Oracle Cloud Customer Connect.

If you're an Oracle Partner and want to learn more, visit the Oracle Partner Community.

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Sid Sinha

VP, Risk Cloud Product Strategy & Mgmt


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