What is Segregation of Duties and why its play an important role in IAM

 

      

What is a SOD Violation?

        SOD stands for Segregation of Duties. The idea is to split critical tasks among    different people so that no single person has complete control.

  • SOD Violation occurs when one person holds roles that conflict—for example, one employee approving their own expenses.
  • Ex: Imagine if the same person handled both opening a bank account and approving transactions. This lack of separation could lead to fraud or mistakes.

   Where Can SOD Be Used?

    SOD principles can be applied in various business areas:

  1. Financial Processes: Preventing fraud by splitting the tasks of authorizing, processing, and reviewing transactions.
  2. Human Resources: Ensuring that hiring and payroll processes are handled by different individuals.
  3. IT & Security: Separating system administration from security auditing to avoid conflicts of interest.

    Types of SoD Analysis:

    1. Preventive SOD Analysis (Before a Violation Occurs)

  • Ensures conflicts don’t happen before access is granted.

    Ex: When a new employee joins, the system checks if their role has conflicts before assigning permissions. If they request conflicting access, approval is required from higher management.

    2. Detective SOD Analysis (After a Violation Happens)

  • Identifies SoD violations that have already occurred.

    Ex: A monthly audit finds that a finance employee has been approving their own vendor payments, indicating a potential fraud risk.

    3. Simulation (What-If Analysis)

  • Testing hypothetical scenarios to understand how changes might introduce SOD risk.

Ex: A manager runs a simulation to check if assigning a new role to an employee will create an SoD violation before approving the request.

   What is a Mitigating Control and Its Uses?

Mitigating controls are additional measures implemented to reduce the risk when it isn’t possible to completely eliminate a SOD conflict.

  • Uses:
    • Enhanced Monitoring: Automated alerts or periodic reviews to keep an eye on risky transactions.
    • Dual Approvals: Requiring more than one person to authorize a critical action.
    • Audit Trails: Detailed logs that allow tracking of who did what and when.
  • Ex: In a small business, one employee might have to manage both order processing and payment due to limited staff. As a mitigating control, a manager might review all such transactions to ensure nothing suspicious happens.

   What are SOD Reports?

SOD Reports are documents or dashboards that list potential or actual SOD violations. They play a key role in monitoring and improving security and compliance.

  • Uses:
    • Compliance Audits: Providing evidence that proper checks are in place.
    • Risk Management: Highlighting areas where conflicts exist so they can be addressed.
    • Process Improvement: Helping management make informed decisions on role assignments.
  • Ex: A SOD report might reveal that an employee in the finance department is handling both expense claims and reimbursements, prompting a review and reallocation of duties.

    SOD Status Terms Explained:

When tracking SOD violations, statuses are used to indicate the progress of remediation:

  • Open :

    • Meaning: A violation has been detected and is awaiting action.
    • Ex: An audit discovers that an employee has conflicting roles. (like approving expenses and processing payments). This issue is noted as “Open” and awaits further review.

  • In Progress :

    • Meaning: Steps are currently being taken to resolve the violation.
    • Ex: The compliance team is reviewing role assignments and planning necessary changes. The violation status is updated to "In Progress."

  • Risk Accepted :

    • Meaning: The organization acknowledges the violation but chooses to accept the risk for now—perhaps due to limited resources or because additional oversight is in place.
    • Ex: A small company recognizes a minor SOD conflict but determines that the risk is low, especially with extra managerial review. The violation is marked as "Risk Accepted."

  • Closed :

    • Meaning: The violation has been resolved or is no longer relevant.
    • Ex: Once the roles are re-assigned or the risk is formally accepted and documented, the case is marked “Closed,” much like a customer support ticket that’s resolved.

  • Remediated :

    • Meaning: Specific corrective actions have been implemented to eliminate the risk.
    • Ex: The problematic access rights are adjusted and additional safeguards (like dual approvals) are added. The issue is then marked as "Remediated" to show that proper controls are now in place.

Summary

  • SOD Violation: Occurs when conflicting roles are assigned to a single person (risk of fraud/mistakes).
  • Preventive, Detective, & Simulation Analyses: Different approaches to ensure SOD principles are upheld.
  • Mitigating Controls: Extra measures to reduce risk when complete separation isn’t feasible.
  • SOD Reports: Tools to track, analyze, and remediate SOD violations.
  • Status Terms: Indicate the progress in resolving SOD issues (Open, In Progress, Risk Accepted, Closed, Remediated).

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