Title : Fraud Investigation & Detection Centralization

1. Business Area: Security & Fraud Title:Fraud Investigation & Detection Centralization Fraud Investigation and detection efforts today are managed out in the various groups. Each group executes the functions differently and at varying levels of rigor. HSBC could benefit form an increase both in consistency and control by pursuing a centralized strategy of managing these functions. In addition, a centralized utility strategy could provide economies of scale that could generate reductions in overall FTE and / or create bandwidth for increased efforts in other areas. To reduce the number of locations used for these functions from XX (depending on final scope) to 2 or 3 while increasing the use of migration to reduce costs when possible. Target (at a high swag) for FTE reduction or reallocation as a starting figure would be 15% of the approximately 1000 seats or 150 FTE. HBIO HBUS HFCA HBCABank of Bermuda Compliance AML* TFS * TBD Executive Sponsor: Kevin Lampeter Key Stakeholders: Art barger and Simon Hales SCI Manager: Chris Columbia Team Members: TBD HBIO Steve Lemezis HBUS Kathleen Gatens. Hard Save based on the on the 15% of 100 FTE if all were reduced and not allocated: 150 FTE x $80 Fully loaded = $12 mm Soft saves due to: Implementation of best practices HNAH wide. Increased bandwidth from economies of scale Increased knowledge and cross training all TBD 7/16/08 12/01/09 TBD Dial in: 1-866-771-2495 PC: 1111152