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

VisibilityAccess to Timely, Accurate, Relevant Information

• 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..

Visibility

ControlAffect Change Quickly

Track suppler performance and ensure that the supply base delivers according to purchasing business goals

• Define roles and responsibilities for procedures and set measurement criteria for compliance

• Establish, document, communicate, policies & procedures. Enforce training requirements for staff at all levels

• Incent best behavior with automated incentive compensation

Control

EfficiencyMinimize Administrative Overhead Costs

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

Efficiency

Corporate Performance Management: Complete and Integrated Business Intelligence

Visibility

Control

Efficiency

Real-time enterprise view of your operations

Automate and integrate

Establish measurements, set targets, and execute

Information Technology: Single Source Of Truth

Visibility

Control

Efficiency

Centralization for consistency of information

Automate to lower costs and minimize errors

Workflow enforces best practices

Close Your Books With Confidence

Reduced Close Time

21

15

40

28

21

4

4

6

5

2

5

9

0 20 40 60

Millipore

McData

Westpac

British American

P aradigm Wireless

Rochester Inst.

EBS 11i

Pre EBS 11i

Days to Close

Corporate GovernanceYou Are Accountable

To your shareholders or constituencies To your CEO and Board of Directors To your employees To the SEC or other regulatory agencies

SC

M

ER

P

CR

M

Visibility

Control

EfficiencyBusiness Systems

Oracle E-Business SuiteBest Practices Across Your Enterprise

Information Technology

CPM

Oracle Internal Oracle Internal Controls Manager:Controls Manager:

Oracle Internal Controls Manager is a Oracle Internal Controls Manager is a comprehensive tool for CXO’s, controllers, comprehensive tool for CXO’s, controllers,

internal audit departments and public internal audit departments and public accounting firms to use to document and accounting firms to use to document and

test internal controls and monitor ongoing test internal controls and monitor ongoing compliance.compliance.

Oracle Internal ControlsInternal Controls ManagerComprehensive policy and compliance management solution

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

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:

Workflow Management Tool

Document Management Tools

System Configuration Tools

Survey Tools

Procedure Documentation Tools

Process Control Limits

Sampling and Statistical Tools

Project Management Tools

Workflow

Files

iSetup

iSurvey

Tutor

Performance Mgmt

Audit Manager Reports

Project Collaboration

Oracle Internal ControlsInternal Controls Manager

Oracle Internal ControlsInternal Controls Manager

Oracle Tutor: Your Policies, Your Procedures

offers procedure authoring, automatic flowcharting, and role-based 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 ControlsInternal 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