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Ensuring Regulatory Compliance: Expert Tips for Aligning Your SAP System with MCA Requirements It’s been almost a year since the Ministry of Corporate Affairs (MCA) , India introduced a new set of guidelines to companies on April 1, 2023, aiming to bring transparency and restrict or reduce data manipulation of books within the company. This prompted SAP clients to initiate new processes such as enabling audit trails and change logs. However, many customers are still unsure about what they need to do. A survey conducted by ToggleNow between September 2023 and March 2024 found that 7 out of 10 customers attempted to implement the rules, but they might not have completed all the necessary steps. Here’s how companies are dealing with the situation: What the Requirement says? Enable audit trail of every transaction. How are companies handling it today? Companies are enabling the SM19/SM20 audit logs. What is the Challenge? Enabling SM19/SM20 audit logs will not only occupy lot of space, but also impacts the system performance. Requirement: Creating an edit log of each change made in books of account along with the date when such changes were made. How are companies handling it today? This is a standard feature of SAP where the change logs are captured in the following tables: CDHDR: Change document header table CDPOS: Change document item table SCDO: Change document object table SCDO2: Change document object table (newer version) TCURR: Exchange rates table (used for currency conversion) T000: Clients table (tracks changes to client-specific data) T001W: Plant parameters table (tracks changes to plant-related data) T001L: Storage locations table (tracks changes to storage location data) Challenge: While this is a standard feature, users in SAP can still delete these logs, which need to be secured. Many of the clients haven’t implemented additional security features to protect the edit/change logs. Know more In conclusion, the management of audit logs such as SM19/SM20 presents challenges, as enabling them may consume significant storage space and affect system performance. Despite being a standard feature, users in SAP can still delete these logs, highlighting the necessity for enhanced security measures. Many clients have not implemented additional safeguards, leaving the system vulnerable to unauthorized alterations. Furthermore, users with administrative privileges can easily disable or erase audit trails, while wider authorizations enable the posting of backdated entries. Debug authorizations are often overlooked, granting users access to SE16 with debug capabilities, compromising data integrity. Moreover, changes made through RFMs and in debug mode lack timestamp records, necessitating stricter controls. The deletion of change and edit logs underscores the imperative for robust authorization controls. To mitigate risks, RFMs and RFCs must be secured to prevent unauthorized access and alterations. Absolutely! Evaluating your SAP system to ensure compliance with the Ministry of Corporate Affairs (MCA) requirements is crucial for maintaining transparency and data integrity within your organization. Our team of experts specializes in SAP systems and regulatory compliance, and we’re here to assist you every step of the way. Here’s how ToggleNow can help: 1. Comprehensive Assessment: Our team will conduct a thorough assessment of your current SAP system to identify any gaps or areas that need improvement to meet MCA requirements. 2. Customized Solutions: Based on the assessment findings, we’ll tailor solutions specifically for your organization to ensure compliance with MCA guidelines while optimizing system performance and security. 3. Implementation Support: Our team will provide hands-on support during the implementation phase such as authorization adjustments, guiding you through the process of configuring your SAP system for additional changes to align with MCA requirements effectively. Read more: https://togglenow.com/blog/expert-tips-for-aligning-your-sap-system-with-mca-requirements/ #sap role design best practices #sap security role design best practices #sap security role design document #role design in sap security #sap role redesign #sap role design #sap security role redesigning #redesign of sap authorizations

Navigating the Future of GRC and Access Governance in SAP Ecosystems A New Era of Security and Access Governance Governance, Risk, and Compliance (GRC) and Access Governance are undergoing major changes due to digital growth and stricter regulations. As organizations connect more data and systems, they’re shifting from isolated security practices to proactive, integrated compliance processes. Raghu Boddu, founder of ToggleNow and a seasoned leader in SAP GRC, has observed these shifts closely. “Fifteen years ago, most companies didn’t treat security as a separate function—it was part of Basis administration,” Raghu explains. “Today, security is essential, and organizations know it’s crucial for protecting data, compliance, and brand reputation.” New Market Realities and Demand for Integrated GRC Solutions SAP has long been at the forefront of GRC, offering tools to help both finance and IT teams tackle compliance challenges. Solutions like SAP Access Control and Identity Access Governance (IAG) provide the flexibility to manage today’s security needs while adapting to future ones. As businesses adopt hybrid and multi-cloud systems, managing security across different platforms has become more complex. This is where SAP’s Business Technology Platform (BTP) shines. BTP connects SAP and non-SAP applications seamlessly, creating a secure, compliant ecosystem. “BTP and SAP Identity Services have changed the game for multi-cloud environments,” says Raghu. “Today, integration is nearly seamless thanks to SAP’s open APIs and connectors. This has allowed companies to manage security across hybrid systems without needing extensive customization.” Regional Insights: GRC Maturity and Market Growth The GRC and Identity Access Management (IAM) markets vary widely across regions, shaped by local regulations and market maturity. In the U.S., SoX compliance has driven strict GRC standards for years. Many American companies have developed sophisticated GRC processes, particularly around data security and financial compliance. Meanwhile, regions like India are rapidly catching up. “The growth potential in India is huge,” Raghu shares. “Over the last five years, Indian businesses have started treating GRC as essential, not optional.” In both the U.S. and other markets, companies are increasingly adopting automation and hybrid identity solutions to handle complex regulations. This shift reflects a global move toward integrated compliance, with GRC becoming a core business priority rather than a “tick-the-box” function. As Raghu adds, “It’s inspiring to see GRC prioritized as part of strategy, not just an audit requirement.” The Future of GRC: AI-Driven Compliance and Embedded Solutions a) AI and Automation in GRC Automation and AI are quickly transforming GRC from a reactive function into a proactive one, identifying risks before they become problems. With AI-driven GRC, systems can automatically analyze data to help companies detect potential compliance issues and manage risk more intelligently. SAP’s GRC tools with AI simplify compliance processes and improve decision-making, allowing teams to focus on strategic priorities. Raghu highlights the potential of AI in GRC: “AI has incredible potential in the GRC space. It’s about giving businesses more power to manage risk with accuracy, while reducing manual efforts and errors.” b) Embedding Compliance into Daily Processes Looking forward, GRC will be embedded directly within applications and workflows, constantly monitoring for risks and responding to threats as they arise. Raghu envisions this future: “In the next five years, GRC as a standalone system may fade. Instead, it will be part of daily workflows, where applications flag risks and suggest controls in real time. AI will automate many compliance tasks, cutting down manual efforts.” He adds, “Imagine GRC as a tool that proactively flags a potential access issue based on historical patterns—like a security recommendation engine. This proactive risk management approach is where AI will make the most impact.” About Raghu Boddu and ToggleNow: Innovating in GRC and SAP Integration Raghu Boddu, founder of ToggleNow, has over two decades of experience in SAP GRC and has witnessed the industry’s evolution firsthand. He started ToggleNow to address complex GRC challenges, helping companies make compliance efficient and accessible. With solutions that streamline risk management and improve security, ToggleNow has become a trusted partner for organizations operating in SAP environments. Read more: https://togglenow.com/blog/navigating-the-future-of-grc-and-access-governance-in-sap-ecosystems/ #sap role design best practices #sap security role design best practices #sap security role design document #role design in sap security #sap role redesign #sap role design #sap security role redesigning #redesign of sap authorizations

Understanding SAP Identity Access Governance (IAG) SAP IAG serves as a comprehensive framework within the SAP ecosystem, designed to manage user access, control risks, and ensure compliance with regulatory standards. Its primary focus lies in governing user access across various SAP applications that are hosted on-premise and cloud along with other non-sap systems such as Azure ID, and platforms. Key Components of SAP IAG SAP IAG offers 5 key services as outlined in the below figure: 1. Access Analysis Service Similar to SAP GRC, SAP IAG also has powerful capabilities to assess and mitigate access risks associated with user permissions. It conducts thorough analysis, identifying potential risks and vulnerabilities within the access structure. A clear definition of risks are displayed for each of the users enabling the Business Owners to take better decisions on managing the risks for each of the user. 2. Privileged Access Management (PAM) Service PAM Service is similar to GRC Access Control Emergency Access Management aka Firefighter, a specialized solution designed to manage critical access by controlling, monitoring, and securing the SAP systems from unauthorized changes using privileged accounts. It focuses on a more controlled assignment and management of accesses which has business impact. PAM ensure compliance with regulatory standards, thereby fortifying the overall security posture of an enterprise. 3. Role Designer Service Role Designer service in SAP Identity Access Governance (IAG) is a pivotal tool facilitating the creation and management of user roles within an organization’s access governance framework. It enables administrators to design, customize, and maintain role structures, aligning access with specific job functions or departments. Leveraging SAP Role Designer, businesses can streamline access provisioning by defining business roles, assigning parameters. 4. Access Request Service The Access Request service feature enables users to request access rights based on predefined roles for various applications integrated to SAP IAG. It streamlines the process, ensuring quick and accurate provisioning while maintaining control. Access Request supports predefined workflows and can provision to various on-premise, and cloud applications such as SAP BTP, SAP SAC etc., For a list of systems that are supported, Click here 5. Access Certification Periodic access reviews are crucial for compliance. SAP IAG automates access certification processes, allowing designated individuals to review and confirm user access rights periodically. How Access Governance can be enhanced with SAP IAG? Streamlined Access Requests and Approvals SAP IAG simplifies the access request process by providing a user-friendly interface. Users can easily request specific access rights aligned with their job responsibilities. These requests are then routed through customizable approval workflows, ensuring compliance with defined policies before granting access. Risk Mitigation through Access Analysis With its robust risk analysis capabilities, SAP IAG identifies and evaluates potential risks associated with user access. It conducts in-depth assessments, highlighting access combinations that might pose security threats or regulatory non-compliance. This proactive approach enables organizations to mitigate risks effectively. SAP IAG offers refinement options such as Simple Refinement, and Advanced Refinement in addition to the regular Mitigation options. Further, the SAP IAG Ruleset is delivered with risks related to APO, BASIS, HR, R3, SRM, S4HANA On-premise, S4HANA Cloud, ARIBA, SuccessFactors, Fieldglass, and IBP. For more details on the supported systems, refer to SAP Note – 2782388 – IAG – How to load default standard ruleset? Automated Access Reviews and Certifications Manual access reviews are time-consuming and prone to errors. SAP IAG automates these processes, scheduling periodic access reviews and certifications. This automation ensures that user access remains aligned with current job roles and business needs, reducing the risk of unauthorized access. Role-Based Access Control (RBAC) SAP IAG facilitates Role-Based Access Control, a method of managing access based on job roles, referred to as Business Roles in IAG. It streamlines access provisioning by assigning roles that are pre-analyzed, and all the relevant mapping is done. This approach simplifies access management while reducing the risk of excessive access rights. Read more: https://togglenow.com/blog/sap-iag-for-enhanced-access-governance/ #sap role design best practices #sap security role design best practices #sap security role design document #role design in sap security #sap role redesign #sap role design #sap sod analysis tool #sap sod analyser

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