ORACLE DATA SHEET

ORACLE ENTERPRISE TRANSACTION CONTROLS GOVERNOR

KEY FEATURES AND BENEFITS

The answer is in the transaction. Whether your organization is

FEATURES
Continuous monitoring of key

trying to improve process performance, meet compliance requirements, or control cash leakage, continuous analysis and control of core business process transactions using Oracle Enterprise Transaction Controls Governor can yield measurable financial benefits.
The Importance of Transaction Controls For most organizations, reducing transaction errors and misuse continues to be one of the largest untapped opportunities to manage costs, improve top line revenue recognition, and ensure compliance with policies.

transactions and application or data modifications

Pre-built best practice library

of controls to accelerate deployment

Business language modeling

of transaction policies
Extensible business object

model
Visibility into control violations

to allow follow up by appropriate personnel

BENEFITS
Significantly reduce cash

According to studies conducted by the Institute of Management and Administration, transaction errors can have dramatic impact. Duplicate payments may represent as little as .5% of the total payment volume, but can still add up to as much as $500,000 per $100 million of payments made. Many organizations dont take full advantage of discount terms. Missing a 1% discount per quarter can amount to $250,000 cash loss per $100 million in payments. As for travel and expenses, the average error rate represents as much as 5% of T&E expenditures. While post audit recovery procedures capture most of these discrepancies, the recovery usually occurs 18 to 36 months after the close of the period in which the erroneous transactions occurred and 25% or more of the recovery is lost in fees. Spotting occupational fraud and abuse is also key to keeping costs under control and business performing to its potential. According to the 2008 Report from the Association of Certified Fraud Examiners, U.S. organizations lost 7% of their annual revenues to fraud. Thirty-five percent of survey respondents cited inadequate internal controls as a primary contributing factor in the frauds they investigated. Many of these losses could have been avoided if transaction errors and fraud were caught and corrected immediately. In most cases, simple analysis methods implemented as transactions controls can identify discrepancies and alert process managers to errors and anomalies. In other cases, the nature of the problem may go undetected by traditional transaction analysis and audit procedures. More sophisticated pattern analysis is needed.

leakage and post-audit recovery costs

Improve revenue recognition

timing
Safeguard integrity of financial

statements
Reduce cost of internal and

external audits
Increase visibility into controls

environment
Mitigate exposure to fraud Accelerate remediation of

policy violations

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Continuous Transaction Monitoring Part of Oracles integrated Governance, Risk, and Compliance Application Suite, Oracle Enterprise Transaction Controls Governor is the first transaction control solution allowing business process owners to model both rule-based and sophisticated pattern analysis policies. Oracle Enterprise Transaction Controls Governor continuously monitors transactions, master data, and application setup activities within core business systems. When suspicious activities or control violations occur or when business conditions change, the system alerts key stakeholders, ensuring that proper and timely remedial action is taken. Management achieves the perpetual visibility required to manage operations effectively and ensure the integrity of financial reporting. Drag and Drop Transaction Model Editing Many transaction control products on the market require users to have strong SQL skills and deep technical understanding of source systems data model, or to learn a proprietary language to edit or create new policies. Oracle Enterprise Transaction Controls Governor supports the authoring of basic to sophisticated transaction policies through simple drag and drop definition and natural language. To meet the demands of a changing environment and ensure that the full potential value of transaction controls is realized, the business can quickly adapt its policies without dependence on IT resources.

Figure 1: Oracle Enterprise Transaction Controls Governor provides drag and drop policy model creation with natural language filter definition

Pattern-Based Analysis Often times, discrepancies in transaction data are missed when analysis doesnt go beyond known problems. Discrepancies may result from unanticipated behavior that pattern-based analysis is more apt to uncover. Pattern-based analysis looks for anomalies indicative of fraud or error in normal patterns of data. While commonly leveraged in forensic auditing, it proves just as valuable in the definition of transaction policies. Oracle Enterprise Transaction Controls Governor combines pattern-based filters such as Mean Analysis and Benfords Law with expressionbased filters to help isolate transaction problems. These problems may not have been spotted through traditional transaction monitoring or post-audit analysis.

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ORACLES GOVERNANCE, RISK, AND COMPLIANCE CONTROLS SOLUTIONS Oracles Enterprise Governance, Risk, and Compliance Controls enforce controls directly in Oracle E-Business Suite or Oracles PeopleSoft Enterprise so compliance can be achieved through normal daily operations. Oracles embedded approach increases financial integrity, reduces risk, and optimizes stakeholder value.

Custom Business Objects Correctly isolating potential transaction problems often requires analysis from multiple data sources and disparate applications, including non-financial applications. While Oracle Enterprise Transaction Controls Governor ships with pre-defined adaptors and business objects for your financial systems, the solution also makes it easy to create new business objects based on third-party data sources such as Excel spreadsheets, XML report files, database and other structured data sources. Once a business object is defined, it can be included in any transaction policy model using drag and drop and natural language expressions. This feature provides the ultimate flexibility in defining a single transaction policy model from multiple data sources. Best Practice Control Library

RELATED PRODUCTS Oracles Enterprise Governance, Risk, and Compliance Controls are comprised of the following components:
Oracle Applications

Oracle Enterprise Transaction Controls Governor features a predefined library of best practice controls that mitigate operational risk and alert managers of significant risk exposure and reportable events. Pre-built controls capturing common risk areas such as the Procure-to-Pay and Order-to-Cash business processes are available for customers interested in accelerating product deployment. Pre-seeded business objects representing key business entities across processes allow additional controls to be built out using reusable, business-friendly terminology.

Access Controls Governor documents, manages, remediates and enforces access policies for effective segregation of duties.
Oracle Configuration

Controls Governor enforces application and data integrity, audits changes to data, monitors setups, and ensures accurate reporting.
Oracle Enterprise

Contact Us For more information about Oracle Enterprise Transaction Controls Governor, please visit oracle.com/grc or call +1.800.ORACLE1 to speak to an Oracle representative.

Transaction Controls Governor continuously monitors policies, controls, and transactions to detect suspicious business activities.
Oracle Preventive

Controls Governor prevents unauthorized changes to critical application data and setups, and enforces realtime policy changes at a granular application level.

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