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Companies have been facing an ever-increasing scrutiny from internal and external auditors to ensure their business processes comply with regional and international laws and regulations. These areas of concern include financials, the supply chain, risk management, global trade, environmental practices, and employee health and safety, and such scrutiny has only intensified over time.
Since reputation and credibility loss can eventually result in significant financial losses, it's important to have a tool to help you ensure compliance. SAP Governance, Risk and Compliance (GRC) is just such a tool. This business add-in function to SAP ERP Central Component (ECC) is meant to monitor, control and alert stakeholders whenever there's a deviation from defined processes.
Here are five SAP Governance, Risk and Compliance subcomponents that can play a pivotal role in ensuring a company stays compliant in all areas of its business.
GRC Process Control
SAP GRC Process Control provides companies with an overview of their business processes on a company level. It provides complete flexibility to set up automatic or manual controls for business processes, which can then be monitored, tested and evaluated.
If it is required, or if it is decided that a specific process control is no longer critical due to effective checks and balances already put in place, a control can either be loosened or completely removed from the system.
GRC Access Control
SAP GRC Access Control ensures employees are given authorizations for only the tasks they are responsible to perform, and that those tasks are according to the segregation of duties.
In this way, Access Control can help a company match employees' access to SAP systems based on their status; for example, those who are newly hired, have left the company or have internally been assigned different roles or responsibilities. Because of that employee tracking, the tool also saves on SAP licensing costs.
GRC Risk Management
SAP GRC Risk Management helps companies identify legal or financial risks involved in any potential business deal. It identifies risks, and also ensures the necessary safeguards are in place to eliminate or minimize those risks.
Its scope also includes analysis of the measures taken to reduce or eliminate the risks.
SAP Global Trade Services
The SAP GTS component ensures that a company is compliant with legal and custom requirements pertaining to cross-border goods trades, not only when a company is selling its products in other countries, but also when it's procuring goods from global suppliers.
SAP Environment, Health and Safety
SAP EHS supports a business's corporate social responsibilities in ensuring compliance to local, state or national industrial hygiene laws for air emissions and treated industrial effluents' discharge into fresh or seawater. It also includes features to ensure compliance to chemical safety and to product-specific environmental regulations.
With concerted efforts and the effective use of SAP Governance, Risk and Compliance to ensure a myriad of compliance requirements, companies can turn their focus to growth, capturing new markets or increasing existing market share of its products and services.
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