introduction to stratexsystems. page 2 about stratexsystems our commitment to enable your firm to; ...

Introduction to StratexSystems

About StratexSystems 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. 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. One clients 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

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

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

We provide one of the most complete strategy execution & risk management solutions available today Leverage your existing technology Business driven design Risk-Based Performance Management Balanced Scorecard & Strategy Map Enterprise & Operational Risk Management Risk-Based Internal Auditing 1 st Line Strategy-focused, Risk Aware culture enabled and embedded 2 nd Line Work with the business to build competitive advantage 3 rd Line Take a Risk-based approach to auditing and business assurance 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 Easy access to powerful MI & Analytics

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

A proven ownership and governance model is baked into StratexPoint The buck stops here Those with Yes/No authority 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. The doers Those people working on delivering the objective, managing the risk or applying the control. Keep in the picture Position(s) that need to know about decision or action related to the objective, risk or control. P P

The StratexPoint solution is underpinned by a conceptually sound data model Objectives KPIsActions Key Risks KRIsActionsAssessmentKey Controls KCIsActionsAssessment Events Certification Risk Appetite ProcessesInitiativesSystems People & Roles Assets Operational enablers are aligned to strategy Entity Business Drivers GovernanceCommentaryWorkflows Audit Trails Build a strategy focused, risk aware culture

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

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

Our implementations follow a clear structure, designed to deliver quick results and develop capability Week 1Week 2Week 3Week 4Q1Q4Q2Q3 Project phase: Approx. 2 4 weeks (depending on scope of deployment) Build & test Deploy & Handover On-going client engagement Discovery & Design Quickly understand the current situation and desired future state Load existing data Customise reports and analytics Transfer knowledge and create capability

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)

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 reduction in the value of losses 93% reduction in the volume of losses 56% Reduction in High Risk Audit Issues 80%

S TRATEX R ISK M ANAGEMENT Q UICK S TART Deployment of a risk and controls framework for a single business unit Risk management reporting and dashboard suite 15 StratexPoint licenses (for one year) Read only users are free of charge 10 days deployment consultancy and training 90 Day Risk Management Deployment and Embedding Roadmap 3 x Quarterly health checks post initial deployment Consultant allocated to the project

Screenshots

Navigator

Example Home Page

Framework Drill Through

Framework Item Ownership

Indicator update (Indicator Trends)

Indicator Update (Indicator Location)

Indicator Update (Add Document)

Commentary (can be made mandatory based on indicator colour)

Indicator Acknowledgement Dashboard

Risk Assessment

Risk Assessment (commentary panel)

Controls Self-Assessment

Controls Self-Assessment overview

Control Certification

Strategy Map

Risk Map Dashboard

More Traditional Risk Heatmap

Risk Heatmap Drill Through

Appetite Alignment Matrix

Risk and Controls Overview Dashboard

Indicator Dashboard Report

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

New Risk Event Registration

Risk Events Overview

Risk Events Estimation vs. Actual

Risk Event Response

Governance workspace

introduction to stratexsystems. page 2 about stratexsystems our commitment to enable your firm to; ...

Documents

risk appetite

riskbased approach

integrated strategy

risk aware culture

partners low risk

appetite slide

line strategyfocused

appetite stratexpoint