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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