SAP GRC (Basic), Biju (jays) http://sapsecurity.info Date : 16-Apr-2011 1 GRC Basic Contents: Time Section Introduction Topics Welcome SAP Security Overview SOX Overview Access Control Solution Overview Compliance Calibrator Overview Rules Architect Risk analysis & Informer Mitigation Controls Alerts Compliance Configuration Firefighter Access Enforcer Overview Overview Module Breakdown Process Walkthrough Role Expert Overview Module Breakdown 2 GRC Basic Example R/3 Role Design model Business Processes Process Role Role Role: performs one or more transactions Composite Role Position: performs one or more roles Security Design Role Mapping Job: General category For jobs Org Unit: Division Sub-Process Sub-Process Activity Activity Activity Workstep Workstep Workstep Employee Transaction: SAP worksteps 3 GRC Basic SAP Security – The major elements of the SAP authorization concept Users Composite Profiles Simple profiles Authorization Objects Authorizations Fields Values (Activities, Organizational elements) Transactions Users User UserProfile Profile Composite Composite Profile Profile Composite Composite Profile Profile SAP Security To address this complexity and flexibility, SAP has developed a solution called SAP GRCAccess Controls Suite. We will guide through how CC addresses some of these issues. Roles Simple Simple Profile Profile Simple Simple Profile Profile Authorization Authorization Authorization Authorization Object Access and Restrictions Objects Objects Authorization Transactions Authorization Transactions 4 GRC Basic and creatively planned accounting fraud Enron filed for bankruptcy protection in the Southern District of New York 5 GRC Basic .Securing Financial Applications Systems for SOX Compliance SOX….000 people (McLean & Elkind. Enron Corporation was an American energy company based in Houston. Texas. Enron figures in late 2001 – Enron employed around 22. 2003) Claimed revenues of $111 billion in 2000 Fortune named Enron "America's Most Innovative Company" for six consecutive years At the end of 2001 It was revealed that its reported financial condition was sustained substantially by institutionalized. systematic. The Sarbanes-Oxley Act of 2002 also called as Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox in response to major corporate scandals like Enron………….. Some interesting facts 6 GRC Basic . However with manually maintained spreadsheets listing the access and authorizations of all employees. 7 GRC Basic . as they lack the collaboration tools and language to efficiently collaborate with the business owners. Lines of the business managers are responsible for SoD. They can’t understand hurdles on business side.Present access and authorizations approach IT does not own the responsibility for proper segregation of duties. and partners and so on. they can only perform a very limited audit at a very high cost. so they rely on IT Internal auditors are trying desperately to stay on top of the SoD issue. but they lack the technical depth to manage user access. contractors. SM49. This can become a severe control deficiency under SOX 6.Top 7 Control Deficiencies in SAP 1. Segregation of Duties . If databases and operating systems are not hardened.Many companies make the mistake of giving access to sensitive BASIS transactions like SE13.segregation of duties as the most important point of control focus or deficiency. SM13. 4. KE54 etc to users in production. 8 GRC Basic . SM59.SAP access had not been revoked for employees who had been terminated. Unsecured Customized Programs .Allowing unrestricted access to open Posting periods in SAP can result in unauthorized entires in previous open periods.Business procedures not matching the actual process is another problem area in many SAP implementations.Many customized 'Z' transactions or 'Y' transactions built in to suit the business process.Sarbanes Oxley and SAP .Unauthorized Access to SAP BASIS . Inconsistent Business Process Procedures . This can potentially lead to control deficiency 7. 3. Such unrestricted access can lead to a potential control deficiency under Sarbanes Oxley.The data in SAP sits on databases like Oracle etc and SAP Portal as such runs on an operating system. SAP Access to Terminated Employees . SU12. Unrestricted Posting Periods . the whole SAP environment is put at risk. SE38. Database and OS Hardening . 2. 5. SC38. SU10. . 9 GRC Basic . IT / Security Challenges . developer and sensitive business transaction. . developer and sensitive business transaction.Ensuring that mitigating controls exists for user access risks and are executed.Identifying risks arising through user access privileges. .GRC – Governance Risk Compliance SAP Compliance Calibrator Business Challenges .Prohibiting and controlling access to critical basis. . .Stopping risk from being introduced into the production system through change updates.Knowing when users have executed transactions that constitute a risk .Stopping risk from being introduced into the production system through change updates.Developing solutions for risk management and control.Prohibiting and controlling access to critical basis. Modern IT applications ERPs like SAP. 10 GRC Basic . Access to specific transactions in the system can be restricted based on user roles and profiles. This sensitive information can be misused. Peoplesoft can be configured based on roles. Sensitive Access Controls SAT – SATs coupled with SODs can act as the foundation for IT based antifraud controls. . Oracle Apps. It is therefore important to restrict users access to this sensitive information in applications. profit and loss account etc. balance sheet.IT Based Antifraud Controls . Segregation of duties in applications can act as a major antifraud controls and lead to better SOX compliance. The other important antifraud control is restricting user access to sensitive transaction in the system.SOD & SAT Segregation of duties in applications SOD – The basic premise of segregation of duties is that users should not be in a position to initiate and authorize their own transactions. From an IT perspective users have access to a lot of information such as payroll data. J D Edwards. Post Goods Receipt and Post Payments H Post Goods Receipt and Process Outgoing Payments H Post Goods Receipt and Process Inventory H Post Goods Receipt and Process Inventory Documents H Post Goods Receipt and Goods Issue H Post Goods Receipt and Process Materials A user could create or change a fictitious receipt and create/change a material document to hide the deception.MM SoD Conflicts – Sample data SoD Controls (Functions that should be segragated) Risks RISK LEVEL A user could post or change a fictitious or incorrect goods receipt and set up a fraudulent automatic payment or create a fraudulent check. The vendor would be paid for the excess recorded receipt. H 11 . A user could post or change a fictitious or incorrect goods receipt and then use a goods issue to hide the deception. A user could post or change a fictitious or incorrect goods receipt and create/change an inventory document/count to hide the deception or clear the inventory count to hide the deception. A user could post or change a fictitious or incorrect goods receipt and post a fraudulent payment or clear the invoice to hide the deception. A user could post or change a fictitious or incorrect goods receipt and create/change an inventory document/count to hide the deception or clear the inventory count to hide the deception. This can be analogous to a role. SoD – Segregation of Duties. Purchase to Pay. or decrease the risk of errors or regulatory irregularities. To perform a function. All risks and functions are assigned to business functions. Risks – Identify potential problems your enterprise may encounter. are primary internal controls intended to prevent.Known as Transactions in SAP. This is achieved by assuring no single individual has control over separate phases of a business transaction. and ensure corrective action is taken.Identifies the tasks an employee performs to accomplish a specific portion of their job responsibilities. rules and rule sets by business function e. which could cause error or irregularities within the system. you attribute one or more rule sets to that risk. Order to Cash. Action. Similar to business process. identify problems. Function . when you define a risk. .g.Compliance Calibrator Key Terms Business Process – Used to classify risks. more than one action may be required to be performed. Rule Sets –Ccategorize and aggregate the rules generated from a risk. Permission – Object in SAP. which form as part of Actions. 12 GRC Basic . but more often a role comprises multiple functions. Record to Report are all types of Business Processes. Action 4. Permissions & Activities 1 2 3 4 1. Function 2. Activities 5 13 GRC Basic . Business process 3.Definitions – Function. Action. Business Process. Permissions 5. 14 GRC Basic ..Process Overview SAP Compliance Calibrator Analyse & Approve Role change Approve Change Deploy Change Role Maintenance (preventative) Request Role change Build Change Risk Analysis SAP CC is used to identify SOD conflicts before the change enters production. User Provisioning (preventative) Request Access Identify Risks Business Approval Update user ………….. The alert monitoring can also be used to identify business or control leads when a SOD violation occurs or a critical transaction is used. Security Controls (detective) Analyse Critical Transactions …. SAP CC is used to execute security controls for period review and approval for SOD conflict and critical transaction risks. This allows control leads to reject the introduction of risk or assign / implement a mitigating control before risk is apparent. Note: Rules have to be pre-defined before Risk Analysis is performed.. Execute Controls Deeper understanding of risks inherent in the security design allows business approvers to make a proactive choice as to whether they allow a user to have an SOD risk or critical transaction. Alert SOD violations Alert CT usage Analyse SOD conflicts …. …. Rules are logical constructions composed of a circumstance or condition. This is commonly represented as an If-Then statement. and the appropriate response to that condition. Risks 15 GRC Basic Compliance Calibrator Rules .Rules Architect – SOD risk SAP Compliance Calibrator Rules are created in compliance calibrator based on the “risks” you define. IF Employee X can Create a Vendor & Employee X can Authorize Pay vendor Then Employee X has been granted High Risk Conflicting Roles This is an example of a SOD risk. Building rule sets 1. version control and other uses. 4. Multiple rule sets can also be set up to act as reporting filters. Set up functions (groups of activities that users perform to carry out their role) by mapping transaction activities. the action is to read only. grouped into functions.Rules Architect – The Rules Library SAP Compliance Calibrator The core engine of SAP CC contains a rules library that maintains the risks for SOD conflicts. SAP CC creates rules based on the risks which are used for risk analysis reporting and alert monitoring.g. in essence this means the removal of false positives. This library will contain conflicting transactions. including the object and activity settings and runs to 1000s of records.g. For each identified risk the rules need to be configured so that the risk is properly recorded. 16 GRC Basic . False positives are identified when at the object level potential risk is not realized e. 2. 5. Map two or more functions together to define a risk 3. Finance Accounting. Business process can also be defined and mapped to risks for ease of reporting e. Helps to set the configuration data for the rule set library. knowledge on objects and activity values. criticality and represents business (process) owners in decisions to mitigate or remove risks. Internal Control Expert Rules Generation SAP Functional Expert SAP CC Expert 17 GRC Basic . SAP CC Expert Provides knowledge on rules setting in SAP CC performing mass upload changes and risk analysis. Typically three distinct roles and skills are involved.Key Drivers SAP Compliance Calibrator Building rule sets can be complex and time consuming. Internal Controls Expert Provides information on SOD risks. SAP Functional Expert Provides expertise on the business process configuration in SAP . Helps identify false positives.Rules Architect. To execute periodic security controls. 3. Before each change request for role maintenance is deployed to production. Risk Analysis and remediation is most efficient when a structured authorizations concept is implemented that maps roles to job and people. 18 GRC Basic . In these circumstance remedial efforts correct risks for large groups of users. Risk Analysis can be performed: 1. Before provisioning exceptional roles to individual users 4.Risk Analysis SAP Compliance Calibrator Once the rule set has been defined and implemented risk analysis can be performed to identify the SOD conflict and critical transaction risks in the staging and production system. During the project lifecycle before users are allowed in the production system. 2. Risk analysis can be performed at the user or role level. Critical Permission risk Just as some individual actions can be critical. Any employee who has permission to perform one of these actions automatically poses a risk. but not both. Defining a critical permission risk ensures that risk analysis identifies any employee who has been assigned an action that includes a potentially risky permission. What determines. inherently risky. by their nature. The severity of a risk can be categorized as either: •Low •Medium •High •Critical You use the Risk Level to categorize risks—and the rules they generate—by severity. Defining a critical action risk ensures that any employee assigned this permission is identified by the risk analysis process. in the case of two conflicting actions an employee may have permission to perform one of these actions. a critical risk is according to your company policies. when assigned to a single employee. Critical Action risk Certain actions are. for example.Risk Analysis – Types of risks Segregation of Duties (SoD) risk A combination of two or more actions or permissions that. 19 GRC Basic . create a vulnerability. the same is true for some permissions. That is to say. Performed to see if any User. Roles.Provides report headings covering different aspects of the enterprise. In addition to the default report formats. HR Object or Organization has access to two or more conflicting actions. Each Audit report menu item contains links to reports that may be user modified to fit needs requested. 20 GRC Basic . “Controls Library” Risk Analysis. “Rules Library”. Background Job . “Alerts”. Audit Reports. “Comparisons”. HR Objects or Organizations. Informer tab report types include: Management View. “Users Analysis”. Security Reports .Provides an access point for reports on every aspect of product and enterprise security compliance issue. Role.Can view reports in the following types: “Risk Violations”. there are specific user-selected focus areas available on many of the reports.Allows SoD conflicts to be analyzed for a large number of Users. “Role Analysis”.Informer Informer allows a appropriate user to access specific reports. Informer Compliance Calibrator provides Interactive visual analysis in the form of Bar charts. Pie Charts and Line Charts By clicking upon a certain chart area. detailed statistics are accessed 21 GRC Basic . Profiles. HR Objects and Organizational Levels 22 GRC Basic . User Groups.Informer SAP Compliance Calibrator You can generate reports for Users. Roles. roles. This can be centralized in IT or Controls or fully distributed to the business. who is assigned the specific Controls. a mitigating control should be implemented and executed. or HR Object 23 GRC Basic . High) Business Unit Monitor User. you may want to control certain risk violations that you want available to specific users. Profiles. Role. identify risk as controlled. Controls Library option lists all the existing Mitigation Controls (active/inactive). A choice also exists on who to give responsibility for maintaining data in the SAP CC tool. Once documented and assigned to a Monitor the tool can be used to track execution of the control or non compliance. 2) Associate the risk with a mitigating control in an alternate repository e. The Controls Library displays the Controls by Risk level and are sorted by: Risk Risk Level (Low.Rather than remove the cause of the risk.g.Mitigation Control Mitigation Controls. An example is a supervisory review and sign off. or profiles. Medium.The ID of the User who is assigned as a Monitor. SAP CC gives you the functionality to document the mitigating controls for each risk. Risk is removed from risk reporting. process control software. Where risks are accepted in the system. 3) Fully document the mitigating control within the SAP Compliance Calibrator. Monitor ID . Many clients will have separate cross-enterprise process controls software and we suggest three options for implementation: 1) Simplest option. Alerts remain as an archived record and can still be tracked and monitored. 24 GRC Basic . Alerts are available within the following risk areas: Conflicting and Critical Actions – When a user performs both transactions in an SOD rule or uses a critical transaction. Mitigation monitoring – If a Monitor does not execute a control to a specified frequency then an alert will be generated which is sent to the Monitor and visible to the control leads.When an alert message has been delivered and cleared.Alerts Monitor Compliance Calibrator includes functionality which can alert business and controls leads by email when a critical or conflicting action is executed. Cleared alerts. SAP Compliance Configuration The configuration Tab is the main starting point for post installation setup. frequency of SoD analysis.. Risk Violations.g. Background Job Scheduling is used for activating Monitoring e. These characteristics are the foundations of the SoD rules. The Java Connector (JCO) acts as the integration point between the Java application and the SAP system to be monitored / analyzed. The Workflow component is used to trigger email alerts to named Process Owners within the User Provisioning. critical objects etcetera. It is an integrated part of the Access Enforcer solution. 25 GRC Basic . The Rule set upload function is used to load the standard rules or customized rule set – e.g. critical transaction codes. The User Management Engine provides for out-of the box J2EE Administrator profiles to be defined or activated . NOTE: Only an User with Administrative authority can access and use this aspect of Compliance calibrator. SAP Compliance Configuration STANDARD GRC RULESET SCHEDULING RISK ANALYSIS 26 GRC Basic . Test functionality Define risks and configure risk rule set Run Risk analysis Remedial actions SAP Compliance Calibrator Technical installation Core ECC. Update mitigating controls in tool. Control Approvers. Agree whether to accept or reject risks. Business Approvers. Risk Descriptions. Agree SODs conflicts and critical transactions.Major Activities Walkthrough Activity Install and set up SAP CC Agree security design principles and dependencies with SAP CC Confirm Project governance and high level processes Master data and functional set up. Assembly Test. Deploy new procedures. Identify and remove false positives. 1 Composite role to each user Agree business owners. Re-run risk analysis. Establish design concepts and principles for mapping roles to jobs and users e. Define Security controls. business approvers. Update procedures to introduce SAP CC as a preventative control and reflect governance for business ownership. Test risks. Stabilization support Mitigate Accepted Risks Update procedures and security controls. Transition to live 27 GRC Basic . Agree control owners and business approvers (execution). update security design templates and raise change request to security maintenance. Categorise risk (H/M/L). Monitors and Control Approvers. Agree master data definitions. Export reports and update Risk Logs. Plan authorization changes. Update risks rule set. Organization. Role Maintenance and UP processes. Run Risk Analysis in production environment. Train and enable operations staff. control owners. Agree mitigating controls for each risk.g. Business Process. Run risk analysis in staging environment. RFC connections to Modules. 28 GRC Basic . providing the capability to review activities used during an emergency situation. Role 1 Role 2 Role 3 Firefighter ID 1 User 1 Before users can access Firefighter.Fire. Owner Owners can assign Firefighter IDs to Firefighters Controllers Receives email notification and reviews the Firefighter Log report. For each Firefighter ID you define the following roles. in a emergency situation. they must be assigned a Firefighter ID. Provides this extended capability to users while creating an auditing layer to monitor and record Firefighter usage. In addition the Administrator perform the creation of Firefighter ID and assign authorization roles. Enables users to perform duties not included in the roles or profiles assigned to their user IDs. 29 GRC Basic .fighter The Firefighter application allows a user to take responsibility for tasks outside their normal job function. but is on vacation or sick leave. Firefighter tracks. Through automated emergency access administration. Assign Firefighter account Update Production Review Control Log Firefighter enables users to perform duties not included in the roles or profiles assigned to their userIDs. Firefighter provides this extended capability to users while creating an auditing layer to monitor and record Firefighter usage.Process Overview SAP Firefighter Request access to production Approve Request Request access to Production. another employee who usually verifies invoices may be assigned a Firefighter ID to perform this task temporarily. Benefits of Firefighter are: Avoid business obstructions with faster emergency response Reduce audit time Reduce time to perform critical tasks GRC Basic 30 . and logs all emergency access activities Example If the employee who normally works with vendor accounting. monitors. Fire.fighter Firefighter dashboard Firefighter Log Report 31 GRC Basic . 32 GRC Basic . This workflow is customized to reflect your company policy. 33 GRC Basic .Access .Enforcer Access Enforcer is a web-based application within J2EE and NetWeaver environments. Access Enforcer automates the role provisioning process within the identity management environment. It is connected to multiple data sources such as an LDAP and SAP backend system. Roles and permissions are automatically applied to the enterprise directories when the access request are approved. When a user requests access to resources for which they do not have permission. Access Enforcer automatically forwards the access request to designated managers and approvers within a pre-defined workflow. It ensures corporate accountability and compliance with Sarbanes-Oxley along with other laws and regulations. Access Enforcer automates the end-to-end access provisioning approval process by combining roles and permissions with workflow. Configuration The Configuration module is for Access Enforcer Administrators who define defaults. workflow. Approvers include line managers and IT security. and other attributes that are based on their corporate business processes and policies. 34 GRC Basic .Access Enforcer Access Enforcer has four task modules for specific usage. Approvers can also request access for other end-users. They include: Requestors The Requestors module is for end-users who are requesting access to SAP and non-SAP backend systems. Approvers The Approvers module is for approvers who approve access requests. Informer The Informer module is a reporting tool that provides graphical and analytical reports for managers. Chart generates a graphical view of the request approval information. there may be other Approver types that can be added to Access Enforcer. An Approver can only approve or reject requests that they own and cannot approve requests for other approvers unless they are assigned as a alternate approver. Requestor As a Requestor. There are three types of Requestors: Department Member Creates requests for access permissions or roles. The Security Approver can provision access to the target system that has been requested. you use the Requestor module to create various access requests for an SAP backend system. The standard Approver types are: Manager Approver is usually the requestor’s manager. which can be used to analyze various activities. Security Approver is usually the last approver in a typical workflow. Depending on your organizational hierarchy and process. non-SAP system. or other application (server). if necessary. Reports are divided into two categories: Analytical lets you drill down to individual role change and access permission requests.Access Enforcer Module Breakdown Approver Access Enforcer provides three standard Approver types. Role Owner Approver has the authority to approve or reject a request. Manager can review and approve their workflow stage during the approval process. The Approver can put a request on hold and add additional roles to the request. 35 GRC Basic . for themselves or for their team members Managers Creates requests for roles for their subordinates Approvers Other managers can also create requests Informer Access Enforcer provides the ability to generate various reports for the purpose of viewing and analyzing request approval activities. 36 GRC Basic .displays pending requests assigned to you. Request Approver Page for a request submitted.Access Enforcer Screenshots Request for Approval List. Submits completed Access request page.g. approver can mitigate the problem or reject the Request. which can be set to specific or multiple data sources (e. Upon approval. This triggers a Workflow process. SAP HR system or non-SAP systems) to complete the request process Requestor 3. 5. When conflict arises. for which they do not have the necessary roles 2. Receives email notification of access request at each approval stage. Automatic provisioning to the target system could take place. Provides Access Request page. Access Enforcer 4. which is made up of several pre-defined approval stages and is customized to reflect the business and security policies and procedures. access request is routed to next stage.Access Enforcer Walkthrough 1 Makes access Request for specific application. Approver 37 GRC Basic SAP . which could involve the IT security team for entry to the SAP backend system or application server. Performs Risk analysis and SOD assessments. Access Enforcer .Benefits 38 GRC Basic . 39 GRC Basic . Role Expert Role Expert is a solution for compliant enterprise role management. and manage roles across multiple enterprise applications ad enforces best practices. and control test results and allows SAP security administrators and Role Owners to document important role information that can be of great value for better role management such as: Tracking progress during role implementation Monitoring the overall quality of the implementation Performing risk analysis at role design time Setting up a workflow for role approval Providing an audit trail for all role modifications Maintaining roles after they are generated to keep role information current 40 GRC Basic . Role Expert provides a complete audit trail. document. eliminating the inefficient back-and-forth exchanges between business managers and IT. covering role definition. allowing role owners to define. and facilitates approval workflow. tracks changes. resulting in lower ongoing maintenance and effortless knowledge transfer Automatically analyzes roles for potential security risks (audit and SoD issues). detailed change history. Dashboard of all the roles in Role Expert. Role designer. Displays an interactive graphical interface of the roles broken down by system landscape. Change history provides you with an audit trail for all the changes made to roles within Role Expert or your SAP system Mass Maintenance.Allows you to synchronize the SAP Back-end systems with Role Expert by importing roles that already exist in the SAP system. It also shows the number of roles with violations and roles belonging to different role types. Value Mapping Approval Criteria Org Level. or business process. Role Designer allows you to define: Role Building Methodology Naming Conventions Role Attributes Org. 41 GRC Basic .Maps the hierarchical structuring of organization.Role Expert Role Library. enabling to manage roles effectively.Provides you with a step-by-step guide for designing roles across your enterprise. role owner. Thanks Biju 42 GRC Basic .Please let me know if any concerns.