skechers - oracle grc case study gen7982 update# 2

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Oracle Risk Management (GRC) Product Strategy Update GEN7982

Sid Sinha Oracle Application Development Oct 27, 2015

Presented with


Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Introductions

Oracle Confidential – Internal/Restricted/Highly Restricted 3

• Ashwat Panchal – Director Internal Audit, Skechers, USA Inc. – Ashwat is responsible for managing the Global Internal Audit

function for the company, which includes direct reports in US, Europe and Asia. He works closely with Senior Management and Audit Committee to ensure the Company's governance, risk and compliance activities are functioning properly. In addition, he works closely with the external auditors to support the annual financial statement and statutory audits around the world.

Agenda

Oracle GRC Product Strategy Update

Case Study: Skechers

Case Study: Harvard Pilgrim HealthCare

KPMG Best Practice Update

Wrap-up

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I N T E R N A L A U D I T

SKECHERS USA, Inc. – Internal Audit

Oracle GRC Solution for Global Audit / Compliance Needs

Ashwat Panchal

Director – Internal Audit

http://www.skechers.com/default.jhtml

Internal

Audit 6

Agenda

Company Background

Internal Audit Organization

Business Needs

GRC Implementation

Benefits

Summary

Questions

http://www.skechers.com/logos/eps/Performance/perf-S_shift_navyback.eps;$sessionid$OJGQPPAAAD3CRLAWAQFCM4Q

Internal

Audit 7

Company Background

Global Brand

Second largest and fastest growing Global Footwear Brand

Skechers product reaches consumers on six continents via our subsidiaries, joint ventures and distribution

partners.

Presence in more than 160 countries


Internal

Audit 8

Company Background

Diversified Business Model

Combination of Domestic Wholesale, International Wholesale, Retail, Distributors and Joint Ventures around the

world.

Financial and Other Data

Annual Net Sales of $2.4 Billion in 2014

Over 1,000 Retail Stores Worldwide

Breakdown of Net Sales Q1 2015

Information Technology

Oracle Financials

Legacy Applications for sales order to cash and retail point of sales

Third Party Warehouse Management System

42%

37%

20%

1%

Domestic Wholesale International Wholesale Retail E-commerce


Internal

Audit 9

Internal Audit Organization

Organization Chart

Director - Internal Audit

Internal Audit Manager Senior Internal Auditor Internal Auditor Internal Auditor

Location France USA USA Hong Kong

Audit Responsiblities Include

Europe USA USA Asia Joint Ventures

Canada Central America Central America Japan

India Joint Venture Latin America Latin America

International Distributors International Distributors


Internal

Audit 10

Business Needs

Management of Global Audit / Compliance Activities

Distributed Control Environment

Efficient Use of Audit Resources

Scalable and Addresses Global Growth

Hosted Solution

SEC Public Company


Internal

Audit 11

GRC Implementation

Replaced IBM’s WBCR Solution in 2012

GRC Solution

eGRCM – Governance Risk and Compliance Manager

ACG – Access Controls Governor

– Integrated with Oracle Financials for Access Controls / Segregation of Duties

TCG – Transaction Controls Governor

– Procure to Pay Cycle

GRCi – Oracle Business Intelligence for Reporting

Hosted Environment – AT&T

Globally accessible


Internal

Audit 12

Benefits

Standardized Control Infrastructure with Master Library of Processes and Controls

Ease of Implementation of Controls as Operations Grow Worldwide


Internal

Audit 13

Benefits

Audit Efficiencies

Internal Audit

Improved workflow for review and approvals for Audit Assessments

Simplify routine audit activities, thereby allowing Internal Audit team to focus on higher risk and strategic areas

Accessible worldwide

Efficient use of Internal Audit resources

External Audit

Streamlined communication with External Auditors

External Auditors can review control environment documentation, including process flows and identification of key

controls throughout the Company

Ability for External Auditors to access Internal Audit testing that is used to support the financial statement audits

Reduced audit fees


Internal

Audit 14

Benefits

Centralized Repository

Control Environment Documentation, including processes, risks, controls

Process Flow Diagrams

Standardized Audit Plans / Programs


Internal

Audit 15

Benefits

Centralized Repository (continued)

Control Assessment Documentation, including test procedures / results and conclusions on effectiveness of

controls

Issue Management, including creation and follow-up on remediation activities


Internal

Audit 16

Benefits

Customizable Modules

Library of company documentation

Platform to share information with External Auditors

Integrated with GRCi for OBIEE Reporting

Customizable dashboards


Internal

Audit 17

Benefits

ACG – Automated Access Controls For Oracle Financials

Improve testing for access controls and segregation of duties

TCG – Continuous Controls Monitoring for Procure to Pay Process

Review key controls for potential fraud.


Internal

Audit 18

Summary

Support and Enable Corporate Growth Plans

Efficient Use of Internal Audit Resources

Improved Workflow for Review and Approval of Audit Assessments

Improved Communications with External Auditors

Reduced Audit Fees

Easily Accessible Around the World.



Proposed Agenda

GRC Product Update

Case Study: Harvard Pilgrim HealthCare

Case Study: Skechers

KPMG Best Practice Update

Wrap-up

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2

3

4

5

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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Oracle Confidential –

Update Documentation Import Spreadsheets Update Process, Control & Risks Test Plans, Review, Approvals

Automate Assessments Select Controls based on Risk Conduct Surveys Design, Operating & Audit

Resolve Issues Set Priority and Due Dates Remediation Plans Notifications

Manage Incidents Assign Owners, Attach evidence

Remembers decisions for next control run (self-learning)

Graphical Authoring User Defined Controls

Eliminate False Positives Uncover Data Patterns

Detect Suspicious Transactions Pre-built Library of Controls

1350 Data Elements P2P & Expense Controls

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Case Studies and Speakers at OpenWorld 2015

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Risk Management Cloud Resources

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Safe Harbor Statement

The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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