Introduction to StratexSystems

Introduction to StratexSystems About StratexSystemsOur CommitmentTo 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 MissionTo 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 resultsSince 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

Page #Post credit crunch, Financial Services clients face challenges beyond traditional Risk ManagementLack of an integrated, enterprise-wide solutionToo many spreadsheetsSystems reinforce silo processesCompliance focused risk tools

Intensive and intrusive Regulatory oversightBoard and Senior Management pressurePolitical pressure to reform and do things differentlyBasel 3, Solvency 2, S166Confidence in our approachProven partnersLow RiskKeep us out of the newspaperCost effectiveDeliver strategy Reduce capital provisionReduce operational lossesReduce / eliminate finesEnable the right cultureOperate within AppetitePage #3We have a proven track record of delivering significant business valueImprove 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 losses93%reduction in the volume of losses56%Reduction in High Risk Audit Issues80%Page #Our solution is called StratexPointStratexPoint is an Integrated Strategic Execution and Risk Management solutionBuilt on the ubiquitous SharePoint platformSupports each of the Three Lines of Defence

Comprehensive in nature but modular in deployment Our solution delivers:

High ROIHigh User AdoptionHigh Levels of assurance that your business is operating within appetite StratexPoint is also a proven tool for supporting the 4th Line of DefencePage #We provide one of the most complete strategy execution & risk management solutions available todayLeverage your existing technologyBusiness driven designRisk-Based Performance ManagementBalanced Scorecard & Strategy MapEnterprise & Operational Risk ManagementRisk-Based Internal Auditing1st LineStrategy-focused, Risk Aware culture enabled and embedded2nd LineWork with the business to build competitive advantage3rd LineTake a Risk-based approach to auditing and business assurance

78% of Fortune 500 companiesEvery day for the past five years, 20,000 workers have joined the ranks of SharePoint usersOne in every five knowledge workers now has access to SharePointEasy access to powerful MI & AnalyticsPage #6StratexPoint is designed to support an integrated approach which enables sustainable strategy executionPerformance ManagementRisk ManagementStrategy ManagementAppetite What are we trying to achieve? Are we on track?What is our Risk Appetite?Are we operating within appetite?Governance & CommunicationsCulturePage #A proven ownership and governance model is baked into StratexPoint

The buck stops hereThose with Yes/No authority related to the objective, risk or control.Keep in the loopThose involved prior to decisions or action related to the objective, risk or control.The doersThose 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.

PAccountableResponsible Consult Inform Page #The StratexPoint solution is underpinned by a conceptually sound data modelObjectivesKPIsActionsKey RisksKRIsActionsAssessmentKey ControlsKCIsActionsAssessmentEventsCertificationRisk AppetiteProcessesInitiativesSystemsPeople & RolesAssetsOperational enablers are aligned to strategyEntityBusiness DriversGovernanceCommentaryWorkflowsAudit TrailsBuild a strategy focused, risk aware culturePage #Examples of where our solution has added real and tangible business value60%23%182Op lossesHML seen a 60% reduction in operational losses within 18 months Regulatory capitalHML also seen a 23% reduction in regulatory capitalInitiativesConsolidated global portfolio of major initiatives to enable single view of status & risk

Page #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.

Page #Our implementations follow a clear structure, designed to deliver quick results and develop capabilityWeek 1Week 2Week 3Week 4Q1Q4Q2Q3Project phase: Approx. 2 4 weeks(depending on scope of deployment)Build & testDeploy & HandoverOn-going client engagementDiscovery & DesignQuickly understand the current situation and desired future stateLoad existing dataCustomise reports and analyticsTransfer knowledge and create capabilityPage #Deployed on existing in-house client SharePoint environmentManaged by client SharePoint teamStratexPoint deployment optionsCloudHostedOn-PremiseDeployed on a shared SharePoint environment on the Microsoft Azure platformManaged by StratexSystems team Deployed on dedicated SharePoint environment on the Microsoft Azure platformManaged by StratexSystems team Common platform

Industry strength security framework

Switch between deployment modes

Companion app: (Stratex Studio)

Page #13Our 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)

Page #Q&APage #ScreenshotsPage #Navigator

Page #Example Home Page

Page #Framework Drill Through

Page #Framework Item Ownership

Page #Indicator update (Indicator Trends)

Page #Indicator Update (Indicator Location)

Page #Indicator Update (Add Document)

Page #Commentary (can be made mandatory based on indicator colour)

Page #Indicator Acknowledgement Dashboard

Page #Risk Assessment

Page #Risk Assessment (commentary panel)

Page #Controls Self-Assessment

Page #Controls Self-Assessment overview

Page #Control Certification

Page #Strategy Map

Page #Risk Map Dashboard

Page #More Traditional Risk Heatmap

Page #Risk Heatmap Drill Through

Page #Appetite Alignment Matrix

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Risk and Controls Overview Dashboard

Page #Indicator Dashboard Report

Page #Risk Events ProcessCapture risk events from across the enterprise1.New event RegistrationEstimate the direct and indirect impact of the event 2.EstimationComplete a structured investigation into the event3.InvestigationIdentify root causes for the event and defined continuous improvement activities4.Root Cause Analysis (RCA)Define how the event will be resolved5.ResolutionEnsure approvals are done only by authorised staff6.ApprovalManage the payments related to the resolutions7.PaymentsEnable resolutions to be reconciled to the GL8.ReconciliationCapture Risk Events from across the Enterprise.Workflow-driven process from capture to close.Drive continuous improvement through an analytical approachPage #New Risk Event Registration

Page #Risk Events Overview

Page #47Risk Events Estimation vs. Actual

Page #Risk Event Response

Page #Governance workspace

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