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Compliance EnablementThe Newgen Way
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Compliance EnablementThe Newgen Way


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  • 1. Compliance Enablement Punit Jain V.P. (Sales & Marketing) Unpublished Property Of Newgen Software Inc. © Copyright 2005 (Newgen Software Inc.) All other brands and products and logo’s referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders One World One Workplace The Newgen Way
  • 2. Agenda
    • Corporate Governance - Need for Compliance
      • Clause 49
    • Framework for Compliance (COSO) & Implications
    • Newgen Compliance Manager
  • 3. Need of Compliance
  • 4. Spirit
    • Ensure that Corporate and Financial reporting is
      • Accurate
      • Consistent
      • Transparent
      • Timely
      • Fair
  • 5. Basic Tenet
    • Delineate Responsibility and Accountability of the CFO / CEO
    • Guidance to the Audit Committee
    • Governance through Independent Directors
  • 6. Ad Verbatim Clause 49
    • SECTION II.D : The role of the audit committee shall include the following
      • Reviewing with the management, external and internal auditors, the adequacy of internal control systems
      • Reviewing the adequacy of internal audit function, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit
      • Reviewing the company’s financial and risk management policies
  • 7. Ad Verbatim Clause 49
    • SECTION V : CEO/CFO Certification
      • They accept responsibility for establishing and maintaining internal controls and that they have evaluated the effectiveness of the internal control systems of the company and they have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies
  • 8. The Implication
    • CEO / CFO will certify
      • Organizational processes
      • Content of financial filings
      • Existence of appropriate internal controls Audit
    • Committee will review
      • Internal processes
      • Associated Risks & Relevant Controls
      • Frequency of review
    Non Compliance will result in De-Listing on the Stock Exchange
  • 9. Compliance issues
    • Risk Assessment
    • Process Design
    • Comprehensive internal controls
    • Elaborate Process Documentation
    • Periodic Monitoring
    • Process Deviation Tracking
    • Roles and Responsibilities tracking
  • 10. Agenda
    • Corporate Governance - Need for Compliance
      • Clause 49
    • Framework for Compliance (COSO) & Implications
    • Newgen Compliance Manager
  • 11. What is Internal Control?
    • COSO* Process Definition
      • A process , effected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories
        • Effectiveness and efficiency of operations
        • Reliability of financial reporting
        • Compliance with applicable laws & regulations
    * Committee Of Sponsoring Organizations - COSO was originally formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private sector initiative which studied the causal factors that can lead to fraudulent financial reporting and developed recommendations for public companies and their independent auditors, for the SEC and other regulators, and for educational institutions. Source
  • 12. COSO Framework The control conscience of an organization. The “tone at the top” The evaluation of internal and external factors that impact an organization’s performance The policies and procedures that help ensure that actions identified to manage risk are executed and timely The process which ensures that relevant information is identified and communicated in a timely manner The process to determine whether internal control is adequately designed, executed, effective and adaptive All five components must be in place for a control to be effective
  • 13.
    • Accounts Payable, Accounts Receivable
    • Administration Processing
    • Automation of Car Leasing
    • Base Station Rollout
    • Benefits Processing
    • Business name registration
    • Census Processing
    • Claims Handling
    • Claims Processing
    • Consumer Lending
    • Content Management
    • Correspondence Handling
    • Council Tax Processing
    • Credit Analysis Process
    • Credit Card Processing
    • CRM
    • Customer Complaints Handling
    • Customer Acquisition
    • Customer Self Service
    • Customer Service
    • Debit Card Disputes
    • Debt reconstruction/ administration
    • Digital map updates
    Numerous Processes…… Document Processing/Routing Employee Self Service End to End Production Processes Engineering Change Management Exception Handling Expense Claim Fraud Detection & Investigation Funds Management Funds Transfer Process Global Research Production Grant Application Processing HR & payroll processes Incoming mail processing Invalidity Payments Processing; Invoice Processing Leasing Process Licensing & Permitting Life Insurance Processing Loan deferral process Loan Origination and Tracking Loan Processing Logistics Tracking Meter Reading; Customer Complaints Mobile Number Portability Mortgage Processing New Business Processing New Product Development New Product Roll Out Online Freight Booking Online Registrations Order Fulfilment Order Management & Provisioning Order Processing Outsourcing (BPO Payment Tracking Payroll & Pension Queries Pension Fund Mgt. Pension Processing Performance Measurement Personal Loan Origination Police Healthcare Claims Processing of exam results Procurement Management Records Management Road trenching permit system Rural Payments Sales Force Automation Sales Order Processing; Security clearance processing Service Desk Settlement of Disputes Settlement of petitions/ appeals Software Development Processing Standard upgrades STP Student Loan Processing Student Registration Subsidy requests Superannuation Funds Administration Supply Chain Management Tax Applications Technical catalogue processing Trade Finance Treasury Bill Auction Process Unemployment Benefits Vessel Registration Process Insurance ………… .. Insurance Retail Banking Investment Banking Utilities Manufacturing Retail Transport Telecom Public Sector Oil & Gas Pharmaceuticals Travel Education Media Healthcare Distribution
  • 14. Implications
    • Status
      • 190 identified
        • HR 8
        • Treasury 15
        • Materials 22
      • 42 documented and made public
      • 53 under discussion
    • Operations
      • 10s of processes
      • 1000s of process instances
      • 100s of audit instances
      • 50 challenges
    • Review
      • 10s process owners
        • 100s processes participants
    How to track ? Who is responsible ? Track each quarter ?
  • 15. Agenda
    • Corporate Governance - Need for Compliance
      • Clause 49
    • Framework for Compliance (COSO) & Implications
    • Newgen Compliance Manager
  • 16. Compliance Management Framework for Documenting the Process Monitoring Workflow Owners Risks Participants Responsibilities Status Audit Trails Risk Aggregation Controls Publishing Versioning Operational Audit Challenge Resolution Process Audit Risks Approvals Mitigation Plan Newgen Compliance Manager
  • 17. Process Management
  • 18. NCM : Process Management
    • Map organization hierarchy
    • Map and document processes across functions and within functions
    • Auto-create process documentation with related flowcharts
    • Send process for approval
    • Publish process documentation post approval
  • 19. Risk Assessment Process Management
  • 20. NCM : Risk Management
    • Set Responsibilities
    • Schedules assessments
    • Categorize risk
    • Update Risks
    • Track risk mitigation status
  • 21. NCM Risk Management Cont/-
    • Capability to assess risk during
      • Policy/Process formulation
      • As part of internal audit
      • As part of separate risk assessment exercise
    • Capability to categorize risk
      • Reputation
      • Operational
      • Strategic
      • Financial
      • Others
  • 22. Controls Process Management
  • 23. NCM : Controls Management
    • Associate controls to identified risks
    • Calculate mitigation cost
    • Assess residual risk
  • 24. Audit Process Management
  • 25. NCM : Audit Management
    • Set Audit responsibilities
    • Set Audit schedules
    • Initiate “Challenges” route
    • Initiate “Deficiencies” route
    • Initiate “Non Compliance” route
    • Generate action plan and responsibilities for above
    • Generate audit report
  • 26. Monitoring Process Management
  • 27. NCM : Monitoring
    • Newgen Compliance Manager generates comprehensive reports including
      • Status of Internal control / Processes
      • Gross Risk
      • Residual Risk
      • Risk Assessment schedule
      • User-Activity mapping
      • Audit schedules and reports
      • Challenges and Deficiency reports
  • 28. The Complete Picture Process Management
  • 29. About Newgen
    • Leading Business Process Management Solutions (BPM) Provider
    • Core Competency in Imaging, Document Management (DM), Workflow Management (WfM) and Software Product Development
    • Ranked amongst top 10 software product companies (Dataquest (Gartner) in 2003)
    • Largest (39.5%) market share in the DM and WfM market in India (Frost & Sullivan 2003 Knowledge Management Report)
    • 700+ person years and $ 25+ million investment in creating IP in Imaging, DM and WfM technologies
    • Technology Licensing to leading Japanese and American Scanner Mfg.
    • ODC for Konica Minolta, Canon and Citigroup Private Bank
    • 550 + installations worldwide
  • 30. Thank You Newgen Software Technologies Ltd. A-6, Qutab Institutional Area New Delhi - 110067, India Tel: +91-11-26963571 Fax: +91-11-26856936 [email_address]