Organizations find it very difficult to build a risk-free security model and when they build a proper model, they forget to keep an eye on the changes or accesses. When an organization adds new users and responsibilities and upgrades its security system, flaws will begin to occur. This can result in any fraudulent activities causing losses of millions of revenue.
What is preventive Segregation of Duties?
Preventive Segregation of Duties is the capability to review supposed SoD violations before granting new access permissions to a user. One can prevent SoD infractions and keep the system pure if one recognizes the consequences of newly proposed accessibility on your SoD policy. Many firms have attempted to do these manually with the help of spreadsheets, utilizing them to determine if assigning a major responsibility or position to a person will result in an SoD violation. However, this strategy is extremely challenging to manage.
With such a mechanism in place to manage user access, the system may easily calculate the “cumulative impact” of the requested modification and show the results to the authorizer prior to granting access. They can then choose the most effective line of action, that is usually to alter the demand or even to implement mitigating measures. Another benefit of this technique is that the software automatically keeps a complete audit path, making it simple to present proof to the auditors.
How does iRM help you in providing preventive Segregation of Duties?
The function of management in the internal control system is important to its performance. Supervisors, like auditors, do not need to examine every piece of data to ensure that the controls are in place and therefore should concentrate their implementation and effectiveness in high-risk areas. Spot checks on transactions or simple sample approaches can offer a fair level of assurance that the controls are working properly.
- Monitor user behavior by marking changes to essential information and config settings, such as prior and subsequent values, when, and from whom.
- Simplify account creation and provisioning by including permissions and audit trails.
- Develop new responsibilities or alter current ones to discover where disputes presently occur versus where they might occur if the suggested changes were implemented. Before providing, determine which strategy best meets your requirements while posing the least amount of risk.
- Quantifying the economic vulnerability to Segregation of Duties issues in the ERP environment and assigning a monetary value to such threats. Providing such vital data to auditors enables them to concentrate on the regions having the largest financial influence on the company.
- Investigate the targeted ERP system thoroughly to check if individuals have secondary, unwanted access.
Proper administration of preventive segregation of duties-related issues and access control to business-critical programs can increase a firm’s capacity to comply with SOX audit standards dramatically.
SOX compels publicly listed corporations, among many other things, to attest that they’ve implemented financial statement measures. Segregation of Duties safeguards in crucial areas with monetary responsibility is part of SOX compliance management processes.