Introduction to StratexSystems

1. Introduction to StratexSystems

2. About StratexSystems Our Mission To provide an integrated strategy and risk management solution which enhances strategy execution by 5%, enhance capital efficiency by 15% and reduce operational losses 25% while providing 100% confidence that your business is operating within appetite. • Our Commitment • To enable your firm to; • enhance strategy execution by 5% • enhance capital efficiency by 15% • reduce operational losses 25% • while providing 100% confidence that your business is operating within appetite. One client’s results “Since HML commenced its initiative to implement an enterprise-wide risk management framework in March 2008, we have reduced our Pillar 2 capital by 81.2% while delivering a 94% reduction in the value of errors and a 63% reduction in the volume of errors” – Head of Enterprise Risk, Homeloan Management Limited

3. Post credit crunch, Financial Services clients face challenges beyond traditional ‘Risk Management’ Confidence in our approach Proven partners Low Risk Keep us out of the newspaper Cost effective Deliver strategy Reduce capital provision Reduce operational losses Reduce / eliminate fines Enable the right culture Lack of an integrated, enterprise-wide solution Intensive and intrusive Regulatory oversight Too many spreadsheets Board and Senior Management pressure Systems reinforce silo processes Political pressure to reform and do things differently “Operate within Appetite” Compliance focused risk tools Basel 3, Solvency 2, S166

4. We have a proven track record of delivering significant business value • Improve EBITA by 5% • Reduce Regulatory Capital by 15% • Reduce Operational Losses by 25% • 100% confidence that your business is operating within appetite. What value would this have to your business? “Your underlying approach [Risk-based Performance Management] reflects how we want our regulated firms to manage their businesses.” - Lead Supervisor, A European Central Bank 93% reduction in the value of losses 56% reduction in the volume of losses Reduction in High Risk Audit Issues 80%

5. Our solution is called StratexPoint StratexPoint is an Integrated Strategic Execution and Risk Management solution Built on the ubiquitous SharePoint platform • Our solution delivers: • High ROI • High User Adoption • High Levels of assurance that your business is operating within appetite Supports each of the Three Lines of Defence Comprehensive in nature but modular in deployment StratexPoint is also a proven tool for supporting the 4th Line of Defence

6. We provide one of the most complete strategy execution & risk management solutions available today… Easy access to powerful MI & Analytics 1st Line Strategy-focused, Risk Aware culture enabled and embedded 2nd Line Work with the business to build competitive advantage 3rd Line Take a Risk-based approach to auditing and business assurance Business driven design Risk-Based Performance Management Balanced Scorecard & Strategy Map Enterprise & Operational Risk Management Risk-Based Internal Auditing Leverage your existing technology • 78% of Fortune 500 companies • Every day for the past five years, 20,000 workers have joined the ranks of SharePoint users • One in every five knowledge workers now has access to SharePoint

7. StratexPoint is designed to support an integrated approach which enables sustainable strategy execution Strategy Management What are we trying to achieve? What is our Risk Appetite? Performance Management Risk Management Are we on track? Are we operating within appetite? Appetite Governance & Communications Culture

8. A proven ownership and governance model is ‘baked into’ StratexPoint “The doers” Those people working on delivering the objective, managing the risk or applying the control. “The buck stops here” Those with Yes/No authority related to the objective, risk or control. P Responsible Accountable Inform Consult “Keep in the picture” Position(s) that need to know about decision or action related to the objective, risk or control. “Keep in the loop” Those involved prior to decisions or action related to the objective, risk or control.

9. The StratexPoint solution is underpinned by a ‘conceptually sound’ data model Entity Business Drivers Objectives Risk Appetite Processes Initiatives Systems People & Roles Assets Operational enablers are aligned to strategy KPIs Actions Key Risks KRIs Actions Assessment Events Key Controls Governance Commentary Workflows Audit Trails KCIs Actions Assessment Certification Build a strategy focused, risk aware culture

10. Examples of where our solution has added real and tangible business value 60% Op losses HML seen a 60% reduction in operational losses within 18 months 23% Regulatory capital HMLalso seen a 23% reduction in regulatory capital 182 Initiatives Consolidated global portfolio of major initiatives to enable single view of status & risk

11. One firms view of how we compare to our competition Based on our market scan, StratexPointprovides best of breed functionality at a lower cost and with faster implementation – Cognizant, Nov 2012.

12. Our implementations follow a clear structure, designed to deliver quick results and develop capability Project phase: Approx. 2 – 4 weeks (depending on scope of deployment) • Quickly understand the current situation and desired future state • Load existing data • Customise reports and analytics • Transfer knowledge and create capability Discovery & Design Build & test Deploy & Handover On-going client engagement Week 1 Week 2 Week 3 Week 4 Q1 Q2 Q3 Q4

13. StratexPoint deployment options On-Premise • Deployed on existing in-house client SharePoint environment • Managed by client SharePoint team • Common platform • Industry strength security framework • Switch between deployment modes • Companion app: (Stratex Studio) Hosted • Deployed on dedicated SharePoint environment on the Microsoft Azure platform • Managed by StratexSystems team Cloud • Deployed on a shared SharePoint environment on the Microsoft Azure platform • Managed by StratexSystems team

14. Our solution is deployed in a range of Financial Services clients (sample below) • who are regulated by a range of global regulators A Global Investment Bank Central Bank/Financial Services Regulator (x2)

15. Q&A

16. Screenshots

17. Navigator

18. Example Home Page

19. Framework Drill Through

20. Framework Item Ownership

21. Indicator update (Indicator Trends)

22. Indicator Update (Indicator Location)

23. Indicator Update (Add Document)

24. Commentary (can be made mandatory based on indicator colour)

25. Indicator Acknowledgement Dashboard

26. Risk Assessment

27. Risk Assessment (commentary panel)

28. Controls Self-Assessment

29. Controls Self-Assessment overview

30. Control Certification

31. Strategy Map

32. Risk Map Dashboard

33. More Traditional Risk Heatmap

34. Risk Heatmap Drill Through

35. Appetite Alignment Matrix

43. Risk and Controls Overview Dashboard

44. Indicator Dashboard Report

45. Risk Events Process 1.New event Registration Capture risk events from across the enterprise • Capture Risk Events from across the Enterprise. • Workflow-driven process from capture to close. • Drive continuous improvement through an analytical approach 2.Estimation Estimate the direct and indirect impact of the event 3.Investigation Complete a structured investigation into the event 4.Root Cause Analysis (RCA) Identify root causes for the event and defined continuous improvement activities 5.Resolution Define how the event will be resolved 6.Approval Ensure approvals are done only by authorised staff 7.Payments Manage the payments related to the resolutions 8.Reconciliation Enable resolutions to be reconciled to the GL

46. New Risk Event Registration

47. Risk Events Overview

48. Risk Events – Estimation vs. Actual

49. Risk Event Response

50. Governance workspace