#OOW16 - Introducing Oracle Financial Reporting Compliance Cloud Service

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Introducing Financial Reporting Compliance Cloud Risk Cloud OpenWorld16 CON 7293

Aman Desouza Director, Product Strategy Risk Management Cloud Sep, 20 2016 || 4:00 || Moscone West 3005

Presented with:

• Adil Khan, Managing Director

Fulcrum Way

• Michael Mann, Director Finance

Caesar’s Entertainment

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Today’s Panelists

https://www.linkedin.com/in/adil-khan-0930301

https://www.linkedin.com/in/adil-khan-0930301

https://www.linkedin.com/in/mdmanncpa

Agenda

Financial Reporting Compliance Overview (10 mins)

Panelist Introductions (10 mins)

Panel Discussion with Q&A (20 mins)

Additional Resources (5 mins)

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

Effective Risk Management

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Strengthen Internal Controls

Enforce Financial Reporting Integrity

Prevent Unauthorized

Access

Monitor Access to Sensitive

Data

Automate Detection of

Error, Fraud & Waste

CFOs & Controllers

CIOs & CISOs

Auditors RISK MANAGEMENT

CLOUD


Integrated Risk & Compliance

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Streamline risk processes to promote collaboration, transparency and accountability

Early detection of potential issues through automated data collection and analysis

3 Rapid Deployment with Best Practice, Pre-built Controls designed for targeted risk areas

Risk & Compliance Management

Documentation Reviews Assessments Issues

Advanced Controls Monitoring

Audit Analytics User-Defined

Algorithms Visualization &

Simulation

Library of Best Practice Controls

Procure-to-Pay Transactions

Expense Policies

Assess (SoD) Rules

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Roadmap

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Advanced Access Controls

(R13) Restrict Unauthorized Access

& SoD Violations

Advanced Financial Controls

(R12) Protect Against Fraud, Error &

Policy Violations

Financial Reporting Compliance

(R11) Streamline Internal Controls Processes

Risk

Management Cloud


Risk Management Cloud Customers

….and more!

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Financial Reporting Compliance Cloud Service Streamline Internal Controls Processes

Complete Assessments

Remediate & Certify Controls

Document Risks & Controls Matrix

Define & Review Audit Test Plans

Enforce Manual Controls

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Financial Compliance Requirements (examples)

Financial Regulations & Accounting Frameworks

Sarbanes-Oxley (SOX) Act of 2002 US - Publicly Traded or have Public Debt

COSO 2013 Accounting & Internal Control Framework

Similar regulations around the world, such as:

Canadian CSOX/Bill 198 Canada

Loi sur la Sécurité Financière 2003 France

JSOX 2006 Japan

Sector specific regulations, such as:

OMB Uniform Guidance (incl. OMB A-123) Higher Ed, HealthCare, Public Sector

Model Audit Rule Insurance Companies

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Example Risk & Controls Matrix Current Reality: 70% of GRC professionals use spreadsheets, email & custom report apps

Document Risks & Controls

Assess Control Effectiveness

Address Issues Certify Risks and Controls

Eliminate complexity that does not add value.

Streamlines compliance processes & automates manual tasks

Financial Reporting Compliance Process

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Oracle Cloud Springboard with

FRC icons

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FRC Manage Controls Area

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FRC Manage Assessments Area

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Assessment Introduction

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FRC Infolet Dashboard

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Facilitate risk-aware business decisions

Promote Financial Oversight

Control Owners Visibility of risks and controls highlights ownership, and ensures accountability

Process Owners, Auditors Real-time access to control assessments ensures issues are promptly resolved

Executives Contextual, role-based insight ensures certifications are based on managed risks

Agenda





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Oracle Confidential – Internal/Restricted/Highly Restricted 21

Michael Mann Director, Finance at Caesar’s Entertainment is responsible for ICFR but is currently the Business Lead for their Oracle Cloud ERP implementation. He has worked for Caesars for over 7 years and in the gaming and entertainment industry for over 15 years. Prior to joining Caesars Entertainment, Michael was CFO at Gaming Partners International, NASDAQ GPIC.

Michael has extensive experience in leading Finance organizations from start-ups to international operations, and in a variety of capacities from CFO to VP of internal audit. He started his career at Arthur Andersen.

Introductions

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• #1 and #2 market share in almost every U.S. market

• #1 poker brand in the world - WSOP

• 47 casinos across 13 states and 5 countries

• ~3 million square feet of casino gaming space

• ~1.6 million square feet of convention space

• 39,000 hotel rooms

• 458 restaurants, bars and clubs

• 323 retail shops

• Expanding Las Vegas Strip and Regional market share

• Invigorating Hospitality and Loyalty Marketing Programs

• Investing in Caesars’ Infrastructure to Enhance Long-tem Value

Caesars Entertainment is a holding company, with ownership and assets that include:

Leading Position in Most Markets

Strong Portfolio of Widely Recognized Brands

Company Overview

Cornerstone Initiatives: Strengthening Our Foundation and Positioning Us for Future Value Creation

• Instituting a Continuous Improvement-focused Operating Model

• Inspiring a Sales and Service Culture

Caesars Entertainment

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

Caesars Entertainment Profile


Corp

Caesars Growth Partners

Caesars Entertainment Operating Co


Resort Properties

Caesars Enterprise Services

Oracle Financial Cloud

GL & PL Blackline HFM

Operational Systems

• Casino • Hotel • F & B • Player Loyalty • Inventory

CMT Close Management Tool

ICS Internal Control System

CORPORATE STRUCTURE ERP STRUCTURE

Caesars Entertainment Financial Reporting Compliance - Current Process

Financial Reporting Compliance Requirements & Context • Subject to Sarbanes-Oxley Section 404.

• Subject to Minimum Internal Control Standards by Gaming Commissions.

• 2014 10-k included a Material Weakness over ICFR for non-gaming activities.

Current Compliance Tools • 2014 and prior – Excel Spreadsheets

– Hard to control and lock down.

– Disconnected from plan.

• 2015 to current - CMT & ICS

– Do not talk to each other.

– A lot of manual work to maintain.

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Oracle Confidential – Internal/Restricted/Highly Restricted 25

Adil Khan Adil Khan is the Managing Director at FulcrumWay, a firm that has delivered Governance, Risk and Compliance solutions to more than 200 Fortune-500 and middle-market Oracle customers in Americas, EMEA and Asia Pacific since 2003. Adil has also authored “Governance, Risk and Compliance Handbook for Oracle Applications” and he serves on the board of the Oracle Applications Users Group (OAUG) GRC Special Interest Group. He has given over fifty presentations on GRC trends, best practices and case studies at many industry conferences including Gartner GRC Summit, IIA, ISACA, Collaborate and Oracle OpenWorld. Prior to joining FulcrumWay, Adil served as the Chief Executive Officer and board member at Alternate Marketing Networks, Inc. a NASDAQ listed company where he was responsible for growth strategy, financial restructuring, and corporate governance. Adil has also worked for Oracle Corporation, a Big-4 audit firm, and several startups to gain twenty-five years of combined experience in enterprise software and risk management services. He graduated from Virginia Tech University in 1987 and attended executive MBA program at University of Texas at Dallas in 1993-4.

Introductions


Fulcrum Way Leader in risk based management controls

• Provide risk management services & tools for a complete qualitative & quantitative risk assessment.

• Help correct control defects identified by auditors, business managers and control owners.

• Enable organizations to systematically reduce the extent of exposure and the likelihood of risk by

– implementing internal controls management system for the enterprise

– Implementing monitoring controls in business applications.

• Our certified control experts are among the most experienced in the industry with an average of 20 years’

experience in audit, compliance and enterprise risk management

• Our best practices and knowledge, developed over a decade, serving more than 200 enterprise clients can help

organizations improve visibility into business bottlenecks, cash leakage, and missed opportunities.

We offer ways to leverage information that turns risks into new opportunities.

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Audit & Compliance Observations from the Field

1. Organizations spend $100 Billion each year on audit

2. Organizations continue to lose $3 Trillion to fraud and similar risks

3. On average it takes $10 to recover each $1 of lost profit

4. Collaboration in the cloud changes everything

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Agenda





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Financial Reporting Compliance Cloud Service

Confidential – Oracle Internal/Restricted/Highly Restricted

Streamline Internal Controls Processes

Complete Assessments

Remediate & Certify Controls

Document Risks & Controls Matrix

Define & Review Audit Test Plans

Enforce Manual Controls

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Caesars Entertainment Panel Discussion

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1. Drivers for Change in your Financial Reporting Compliance process & tools:

a. When & how did you start considering an alternative to your current process & tools? What triggered this?

Before receiving the material weakness on ICFR we knew our current process was no longer sustainable.

Excel was not ideal for the complex corporate structure of Caesars .

b. What were the motivations & goals when considering/including FRCCS?

As part of our remediation of the material weakness we instituted a couple of new software tools, CMT and ICS. These tools work great however they do not talk or integrate with each other.

As part of our Oracle Fusion we discovered the FRCCS and realized the potential of integration.

c. Why did you choose Oracle FRCCS? What were your decision parameters & concerns? What drove the decision?

Our primary focus to purchasing Oracle Cloud was to replace our 20+ year old ERP system. The decision to acquire Oracle FRCCS was simply an added benefit.


Caesars Entertainment Panel Discussion Page 2

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2. Expected Benefits

a) How do you expect this technology to impact the Fiscal Review team on a day to day basis?

It is too soon to tell however our hope is that this tool will integrate with our ERP solution.

b) How are SOX and other compliance requirements handled? Do you expect to use FRCCS for more than SOX?

We currently use ICS for our SOX program. We do not foresee using FRCCS beyond the SOX program at this time.

c) What benefits do you anticipate from using FRCCS, compared to your current situation?

Centralized database of controls

Easier to track and control

Integrated with our journal entry processing


Caesars Entertainment Panel Discussion Page 3

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3. Implementation Plan

a. What are your plans for implementation? Please tell us where you are at in your plan & anything you are willing to share? (partner, timing, planning process, phased/big bang)?

We are currently in the beginning of our first phase implementation of GL/PL. FRCCS is targeted for phase 2. Overall we are estimating a 3-5 year phased roll out of Oracle Fusion.

b. Do you have any plans beyond FRCCS – for instance do you anticipate taking on Advanced Financial Controls or Advanced Access Controls (refer to slides later in this deck)?

We currently in the beginning of our first phase implementation of GL/PL. FRCCS is targeted for phase 2. Overall we are estimating a 3-5 year phased roll out of Oracle Fusion.

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Cloud Changes Risk Management – Adil Khan

• Transform compliance “silos” into a single enterprise platform

• Lower testing time with standardized templates for assessments, certifications and audit testing

• Streamline compliance with integrated continuous controls monitoring

• Monitor risks across the enterprise

• Provide actionable risk remediation plan to process owners

• Reduce Issue Management effort with better Collaboration between Auditors and Management.


Approach for SOX and Compliance – Adil Khan

• Lack of Clear Ownership

• Ineffective Skills for Complex Analysis – Logic & Data

• Absence of Policies and Procedures

• Limited Data Reuse from Datasource e.g. ERP Applications

• Weak Change Controls, Security and Backups for Audit


Implementation Approach– Adil Khan

Plan and Analyze

• Obtain a clear understanding of the business processes, functions and information required to meet the project’s defined business objectives. Examine the existing business processes and information systems.

Design

• Design improved high-level business processes. Build consensus around solution design. Conduct workshops to map business requirements into FRC Application.

Build and Configure

• Configure application to meet design. Setup Process, Risks and Controls information. Configure application to support risk self-assessment and enable management control certification. Build security and workflows to streamline role based compliance management.

Test and Train

• Validate required application configuration on an individual basis to verify inputs, outputs and processing logic of each configuration functions without errors. Analyze user learning needs and develop the user training guide.

Deploy

• Assist client support team rollout the new system. Address any post-go-live items.

Questions & Answers

Agenda





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Arturo Martínez del

Campo Saucedo

Corporate Chief Financial Officer

Grupo Posadas S.A.B. de C.V. .

LEADERSHIP IN FINANCE

LATIN AMERICA - CLOUD

2016

Best Practice Adopter

First Adopter of Risk Cloud


DEMOgrounds Moscone West Level 3 Lobby (M,T,W) ERP Showcase

Workstation WEP-020

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Go-To Partners

Success requires experience and expertise

– get both from our Go-To Partners:

• Guide process owners & participants

through adoption of Best Practice Processes

• Configure software for effective long-term

success: Minimum cost of operation,

Maximum flexibility to adapt to change

To learn more and get connected, contact

your Oracle Success Manager

Current Go-To Partners: KPMG USA, Oracle Consulting USA, FulcrumWay, OneGlobe, PricewaterhouseCoopers USA

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mailto:[email protected]


Tuesday GENERAL SESSION Sep 20, 12:15 PM – 1:00PM | Moscone West 3005

Oracle Risk Management Cloud – Strategy Roadmap [GEN7198]

Sid Sinha, Head of Product, Oracle Risk Management Cloud Corey West, Oracle EVP Corporate Controller and Chief Accounting Officer, Oracle Brian Jensen, Director, KPMG LLP Timothy Reese, Pennsylvania State Treasurer, Commonwealth of Pennsylvania This general session provides the latest update on the product strategy, release roadmap, and best practices for Oracle Risk Management Cloud.

PANEL SESSION Sep 20, 4:00 PM – 4:45 PM | Moscone West 3005

Introducing Oracle Financial Reporting Compliance Cloud (Risk Cloud) [CON7293]

Aman Desouza, Director, Risk Cloud Strategy, Oracle Adil Khan, Managing Director, FulcrumWay, Michael Mann, Director, Caesars Entertainment This session provides an overview of Oracle Financial Reporting Compliance Cloud and how it automates certifications, assessments, and related manual tasks for regulations such as Sarbanes-Oxley Act. It includes a guided tour of the product, the features and benefits, and describes how audit teams can transform compliance with automation using this unique risk management service.

PANEL SESSION Sep 20, 5:15 PM = 6:00 PM | Moscone West 3005

Introducing Advanced Financial Controls to Audit Expenses & Accounts Payable [CON7291]

Kent Spaulding, Software Architect, Oracle Dane Roberts, Principal Product Strategy Manager, Oracle Mark Stebelton, Director, Product Management, Oracle Stephen D’Arcy, Director, PwC This session provides an overview of Oracle Fusion Advanced Financial Controls Cloud Service to continuously audit expenses, accounts payable, and other sensitive financial transactions. It includes a product tour, features and benefits and shows how expense managers, controllers, and auditors can use advanced data analysis to prevent fraud and error and ensure compliance with policy .

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Wednesday CUSTOMER CASE STUDY Sep 21, 11:00 AM – 11:45 AM| Moscone West 3005

Securing ERP: Application Compliance and Controls Implementation [CAS7689]

Gautham Ramkumar: Director, Advisory Services, KMPG LLP Chuck Devore, Director, Finance Transformation, ADM Kenneth Kobia, Risk & Controls Lead, Archer Daniels Midland Organizations have successfully transformed their business operations by leveraging Oracle ERP technologies. Yet they continue to struggle to balance the two divergent needs of empowering ERP business users, while protecting sensitive data and transactions. In this session KPMG and Archer Daniels Midland detail how they took advantage of Oracle’s ERP security and controls capabilities, to support ADM’s initiative to deploy Oracle ERP .

PANEL SEESION Sep 21, 1:30 PM – 2:15PM | Moscone West 3005

Introducing Oracle Fusion Advanced Access Controls to Strengthen Security [CON7290]

Katrina Johnson, VP Risk Assurance, Service Corp International Nicholas Seeman, Director, Advisory Services, KMPG LLP Barry Greenhut, Director, Product Strategy, Oracle Mark Stebelton, Director, Product Management, Oracle This session provides an overview of Oracle Fusion Advanced Access Controls to continuously detect segregation of duties violations, manage exceptions, and fix unauthorized access to sensitive functions and data. Compliance managers and auditors can use Oracle Fusion Advanced Access Controls to ensure strong access controls across ERP, HCM and SCM cloud applications.


Implement the Best Practice for Oracle Financial Reporting Compliance Cloud [CON7291]

Swarnali Bag, Governance, Risk & Compliance Practice Lead, Oracle Barry Greenhut, Director, Product Strategy , Oracle Lakshmi Rajamohan, Principal Product Strategy Mgr., Oracle Mark Stebelton, Director, Product Management, Oracle This session provides a more detailed walkthrough of Oracle Financial Reporting Compliance from an end user’s perspective, and highlights how the product can be configured to automate the best practice process. Based on learning from a decade of customer experience, it showcases the shortest and most cost-effective path to go live and streamline operations.

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Thursday PANEL SESSION Sep 22, 9:30 AM – 10:15 AM| Moscone West 3005

Implement the Best Practice for Oracle Fusion Advanced Financial Controls Cloud Service [CAS7286]

Swarnali Bag, Governance, Risk & Compliance Practice Lead, Oracle Barry Greenhut, Director, Product Strategy, Oracle Christine Doxey, Owner or Partner, “Doxey, Inc” Lakshmi Rajamohan, Principal Product Strategy Manager, Oracle Mark Stebelton, Director, Product Management, Oracle This session provides a detailed walkthrough of Oracle Fusion Financial Controls Cloud Service from an end user’s perspective, and highlights how the product can be configured to automate best practice controls. Oracle Fusion Advanced Financial Controls Cloud Service is designed to meet the common needs of Oracle Financials Cloud subscribers. Based on learning from a decade of customer experience, this session showcases Oracle’s best practice business process for maximum ROI with minimum cost of ongoing operation.


Get Started with Financial Reporting Compliance and Advanced Financial Controls [CON7284]

Barry Greenhut, Director, Product Strategy, Oracle Lakshmi Rajamohan, Principal Product Strategy Manager, Oracle Joel Alvarado, Customer Success Manager, Oracle This session provides you with the most effective project plan to implement Oracle Financial Reporting Compliance or Oracle Fusion Advanced Financial Controls Cloud Service. Participants will learn the shortest and most cost-effective path to success using Oracle’s customer and partner-tested “get started” process. Learn how to plan and adopt these cloud services, and then sustain your use through growth and change. Learn how to get the experience and expertise needed to succeed.

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