General Controls
In the General Controls section, typical risks relevant in many companies are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Employee master data is incomplete / inaccurate.
Expensive Manual Control
Employee master data is double-checked in the ERP system after creation / change / deletion.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure 4-eyes-principle via approving changes to employee master data in the system. Detective control via DICE.Controls to check whether all changes in the system have been approved and no workaround has been performed.
Financial statements are incomplete / inaccurate.
Expensive Manual Control
At the end of each month / quarter / year, the subledgers are compared to the general ledgers in the ERP system manually.
Real-time Automation with DICE.
Detective control via DICE.Controls to reconcile the S/L to the G/L and ensure that all balances have been transported from the S/L to the G/L so the financial statement is complete and accurate.
Manual journal entries are inaccurate.
Expensive Manual Control
Manual journal entries from ERP systems w/o the possibility to implement a 4-eyes-principle are reviewed on a sample basis to detect fraudulent / incorrect postings.
Real-time Automation with DICE.
DICE.Identity is implemented to ensure a 4-eyes-principle according to the internal policy (i.e. certain thresholds) for manual journal entries to prevent fraudulent / incorrect postings in a timely manner.
Manufacturing
In the Manufacturing section, typical risks relevant for manufacturing companies are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Bills of material (BOM's) contain wrong parts.
Expensive Manual Control
BOM's have to be signed on paper by the design and production engineers before being released for serial production.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure that the correct parts (and amounts) are documented in the BOM (approval by design and production engineers). Detective control via DICE.Control to ensure that the signed BOM is then used in serial production and is not changed by anyone.
Asset acquisitions are not approved as intended.
Expensive Manual Control
For each asset acquisition, the procurement departmant has to gather the respective approval according to the approval policy (depending on certain thresholds).
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure that an asset is only acquired after gathering the relevant approvals according to the approval policy in the procurement process. After the acquisition is ordered via the ERP system, DICE.Controls ensures that for each order the correct approval has been given.
Stock level is not displayed correctly in the system.
Expensive Manual Control
Corrective postings in the warehouse management system are only performed by employees using the 4-eyes-principle and after gathering a signature from the supervisor on the counting sheet.
Real-time Automation with DICE.
Preventive control via DICE.Identity to gather the approval from the supervisor (depending on the value of the corrective posting). After a corrective posting is recorded, DICE.Controls checks continuously whether for each corrective posting the respective approval has been gathered by the employee.
Financials
In the Financials section, typical risks relevant for the financial industry are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Corporate loans are not approved correctly.
Expensive Manual Control
Before a corporate loan is granted, the clerk gathers the approvals for the loan via email from the respective persons responsible (according to the signing policy).
Real-time Automation with DICE.
Preventive control via DICE.Identity to automatically forward the loan request to the respective person responsible (according to the signing policy).
Equity ratio drops below 8%.
Expensive Manual Control
Equity ratio is analyzed manually on a regular basis to ensure that the bank's tier 1 / 2 equity is enough to stay above 8% equity ratio.
Real-time Automation with DICE.
Detective control via DICE.Controls to continuously ensure that the equity ratio is above 8% (better: a higher threshold as safety puffer) by calculating the ratio (incl. the Tier 1 / 2 part) based on the current balance.
Anti-money-laundering policies (e.g. regarding PEPs) are not followed.
Expensive Manual Control
Annually, all PEPs (politically exposed persons) are reviewed by the responsible employees.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure that for each PEP, the respective due diligence (DD) process has been followed. Annual automated check of all PEPs whether for all of them a DD has been performed.
Retail
In the Retail section, typical risks relevant for retail companies are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Vendor master data is incomplete / inaccurate.
Expensive Manual Control
Vendor master data is double-checked in the ERP system after creation / change / deletion.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure 4-eyes-principle via approving changes to vendor master data in the system. Detective control via DICE.Controls to check whether all changes in the system have been approved and no workaround has been performed.
Given discounts are non-compliant with the policy.
Expensive Manual Control
Discounts are only allowed according to the policy.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure that discounts above certain threshold (several) are approved by the correct person according to the policy. Detective control via DICE.Controls to check whether all discounts were given according to the policy.
Requests for time off are not approved by the supervisor.
Expensive Manual Control
Requests for time off are recorded and approved using paper forms.
Real-time Automation with DICE.
DICE.Identity is used for digital requests for time off. According to the internal policy, the respective supervisor is informed automatically and is able to approve the request (which is then documented there as well).
Utilities
In the Utilities section, typical risks relevant for the utilities industry are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Energy trading limits are not within the defined thresholds.
Expensive Manual Control
Responsible team checks the trading limits on a daily basis and reconciles them to the defined internal thresholds.
Real-time Automation with DICE.
Via DICE.Controls, the trading limits are reconciled continuously to the defined internal thresholds. In case a trading limit is exceeded, the violation is reported in real-time to the responsible team.
Segregation of duty conflicts between trading, risk management and back office.
Expensive Manual Control
A manual access management process is defined and followed when access rights are changed / new users are added.
Real-time Automation with DICE.
Preventive control via DICE.Identity to ensure that for each change / creation / deletion of user access rights, the defined access management process is followed. Via DICE.Controls, the access rights are monitored continuously and any change made to the respective tables in the ERP system are reported in real-time to the responsible team.
Energy trades are not approved according to the respective policy.
Expensive Manual Control
Each trade is started by a trader and reviewed by risk management (incl. confirmation by business partner regarding price / amount). The back office then checks whether both parties have approved the trade and ensures that the data is put into the system correctly.
Real-time Automation with DICE.
DICE.Identity is used for the internal approval process in the front (trading), middle (risk management) and back office (before invoicing is processed). Each trade is monitored in real-time to ensure that all confirmations have been given and the process has been followed according to the policy.
Services
In the Services section, typical risks relevant for service companies are shown.
To illustrate the digital transformation with real-time automated controls enabled by DICE., a possible solution to mitigate each risk using DICE. is compared to a bureaucratic manual control.
Hours charged on a client exceed the contractual amount.
Expensive Manual Control
Weekly reports are extracted from the time recording system (or Excel) and reconciled manually to the hours in the contract.
Real-time Automation with DICE.
DICE.Controls is used for a detective control which constantly reconciles the contractual hours to the hours recorded in the respective system (for all employees recording time for a particular project) and immediately informs the supervisor when a certain threshold is reached.
Documents are sent to client without approval.
Expensive Manual Control
Offers / working papers are sent to the supervisor via email who then reviews and approves them via email as well.
Real-time Automation with DICE.
DICE.Identity is used to inform the supervisor that certain documents have to be reviewed. After the review, the supervisor is able to approve the documents from "on-the-go" as well as from the office.
Travel / entertainment expenses are incorrect.
Expensive Manual Control
Travel / entertainment expenses are approved via form / email by the supervisor. Supporting documents are reviewed before payments are made in the system.
Real-time Automation with DICE.
Preventive control via DICE.Identity to automatically allocates the travel / entertainment expense request to the respective supervisor for approval. Each travel / entertainment expense is then checked with DICE.Controls whether the correct approval has been given before the payment is made.