Reporting in Financial Reporting Compliance

In Financial Reporting Compliance provides a set of predefined reports organized into five categories.

Assessment Reports

• Assessment Details Reports - displays information about assessment conducted against selected objects.
• Control Assessment Report - lists controls and their related assessment activities in PDF format
• Control Assessment Extract - lists controls and their related assessment activities in Excel Format

Control Reports

• Control Details Report

Issue Reports

• Issue Details Report - provides information about selected issues, including the object against which each issue is raised, issue status and state, users who created or updated and when they did so, and other values.
• Issue Details Extract - provides similar information for export to an application such as Excel.

Risk Report

• Risk Control Matrix Report - lists risks, controls and related information: perspectives and other values
• Risk Control Matrix Extract - lists risks, controls and related information for export to Excel Format

Administration Reports

• Change history Report
• Pending Worklist Items Report
• Related Objects report
• Worklist Item Requiring Reassignment

Activating Email Alerts

Setup e-mail messaging in Financial Reporting Compliance users when tasks require their attention.

1. select the Enable check box in the E-Mail Alerts region
2. Select the test connection button to view a message that connectivity with your email server is established.
3. Create an email alert schedule

Financial Reporting Compliance in Risk Management Cloud

What is Financial Reporting Compliance?

Financial Reporting Compliance is, in effect, a module of Risk Management. Its objects include Risk, Control (along with a test plan, test instruction and test step), and Process (along with action item).

Financial Reporting Compliance consolidates the documentation of your business practices to satisfy financial reporting regulations. This Enterprise-scope solution enables you to:

1. Define and interrelate processes, risk, controls, assessments and issues.
2. Automate periodic reviews, approvals, test and follow through.
3. Secure what users see and do.
4. Let stakeholders get the information they need to make the best decisions.
5. Lower cost by implementing efficient, repeatable, and reliable day-to-day usage and administration.

The Financial Reporting Compliance module includes three object types: Process, Risk and Control

1. Process is the parent of Risk. As you create or edit a process, you can relate it to risks that may affect it, or create related risks.
2. Risk is the parent of Control, as you create or edit a risk, you can relate it to controls meant to address it. 
3. Controls may work together to address a given risk, and if so, other configurations values may apply to them.

Risk-Control Matrix

Financial Reporting Compliance maintains a risk-control matrix:

Every business process is subject to risks, and a company enacts controls to minimize those risks.
A risk-control matrix is an organized record of all the material risks that may affect each process and all the controls created to address those risks.

Predefined Job Roles for Financial Reporting Compliance:

1. Enterprise Risk and Control Manager 
2. Compliance Manager 

Both of these are Superuser roles providing functional and setup access to anything a person can do in Financial Reporting Compliance.

Best Practice Financial Reporting Compliance

The Best Practice Solution is a prescriptive set of steps for deploying key elements of Financial Reporting Compliance with maximum Speed and efficiency, and with minimum cost and upkeep.

Best Practice Solution Steps

1. Gather Configuration Data

• Retrieve existing risk and control definitions from spreadsheets, email-records, file-sharing system, and any other Repositories.
• Collect related data, such as documentation needed to support risks and controls.
• Consider who is to work with risks and controls and the roles they are to fill.

1. Prepare and Import Data

• Use the data migration utility to import this data into Financial Reporting Compliance

1. Configure Roles and Users

• Use Oracle Identity Manager and Authorization Policy Manager to define risk management roles and assign them to users. You can create job roles from predefined duty roles.

Use risk-management and control-management work ares to create new risks and controls, or modify existing ones.
Optionally, use Risk Management workflow to route risks and controls to reviewers and approvers
Regularly assess risk and controls to ensure their continued viability.

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Overview of Oracle Risk Management in Oracle ERP Cloud

Risk Management is a great tool for Auditors to address risks in the Organization. Risk, in this context, is an adverse material or financial impact to the organization. The Risk Management Module is composed of two divisions: Financial Reporting Compliance and Advanced Controls Management.

Financial Reporting Compliance is the part that Documents all the Business Processes, while Advanced Controls Management is used to test Financial Transactions (specifically Payables and Expense Reports), Segregation of Duties and User Security.

Advanced Controls Management is further broken down into two: Advanced Financial Controls and Advanced Access Controls.

Goals of Risk Management

1. Update/Maintain Documentation for Business Processes and Adverse Impact
2. Evaluate/Review Risks to Business Processes
3. Resolve Issues
4. Distribute/Print Results

To work with a risk is to:

• Name the risk
• Describe the risk
• Relate the risk to the controls meant to minimize it

You may also attach documents to the risk to provide more detail about it and select perspective values for the risk to characterize it.

Risk Management Cycle

1. Add risks and controls to the object library
2. Review and approve risks and controls
3. Create Assessment templates and plans and initiate assessments
4. Assess Objects
5. Create and Address Issues identified during assessments
6. Re-assess Risks and Controls
7. Review assessment result Reports

Predefined Job roles for Risk Management

Application	Job Role Name
Financial Reporting Compliance	Enterprise Risk and Control Manager
Financial Reporting Compliance	Compliance Manager
Advanced Financial Controls	Application Control Manager
Advanced Access Controls	Application Access Manager

Important Duty Roles in Risk Management

1. Enterprise Risk & Control Manager
2. Compliance Manager

The above-mentioned roles is recommended to be copied and customized because it is way too powerful to assign to business users. You would need to run specific background programs after the customization have been carried out.

How does Financial Reporting Compliance and Advanced Controls Management work together?

Financial Reporting Compliance and Advanced Controls Management both use Control as the way to identify the Risks in the Enterprise.

Scheduled Jobs in Risk Management

Three predefined processes run the first time you start Risk Management:

1. User and Role Security Synchronization
2. Worklist Security Synchronization
3. Report Synchronization

Common Terminologies in Risk Management Cloud

Some common terminologies for Risk Management:

1. Object is the generic term for any of the components one may include in a module. Objects are independent of other objects in other modules.
2. A Module is a set of objects that relate to one another in a way that defines governance, risk and compliance environment.
3. Process is the focus of governance, risk, and compliance efforts, representing business processes for which users identify risks and create controls to alleviate those risks.

• Financial Reporting Compliance
1. Process Object
2. Risk Object - A risk defines circumstances that may adversely affect a business process.
3. Control Object - A control defines measures to address a risk. 
4. Test Plan - For each control, you can create test plans. Test plans document steps to be followed in determining whether the control is effective.
5. Issue - An issue is a defect or deficiency detected for a risk or control, or an activity connected with one of these objects, such as an assessment.
6. Remediation Plan
7. Assessment - An Assessment is the review of a risk or control to ensure that it is defined correctly and remains effective over time.
8. Survey is a set of questions that may be associated with assessments or distributed independently of assessments

• Advanced Control Management

1. Model
2. Control
3. Incident

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