Governance, Risk, Compliance & Trust

1. Governance, Risk, Compliance & Trust Presentation to KPMG May 20, 2009 By Alex Todd AlexTodd@TrustEnablement.com

2. Agenda • GRC & Systemic Risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

3. Governance Risk & Compliance Drives Principled Performance® by enhancing corporate culture and integrating governance, risk management, and compliance processes. • Governance • set and evaluate performance against objectives • power to authorize a business strategy and model to achieve objectives • Culture • establish an organizational climate and mind-sets of individuals that promote ethical behavior, trust, integrity and accountability OCEG graphicremovedfromthis location • Risk Management • proactively identify and rigorously assess and address potential obstacles to achieving objectives • identify and address risks that the organization will step outside of mandated and voluntary boundaries • Compliance • proactively encourage and require compliance with established policies and • detect noncompliance and respond accordingly Source: The termPrincipled Performance is a registeredtrademark of the non-profit think tank OCEG and isdefined in their position paper, Red Book (seehttp://www.oceg.org/view/RB2Project).

4. OCEG Business Case Governance OCEG graphicremovedfromthis location Compliance & Ethics Programs Risk Management Culture ERM Social Responsibility Compliance Programs IT Governance Ethics Programs Source: OCEG

5. OCEG Objectives OCEG graphicremovedfromthis location “Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed” - OCEG Source: OCEG

6. OCEG Objectives

7. OCEG Business Case OCEG graphicremovedfromthis location Society Customers Investors Regulators

8. What does the world look like?

9. Systemic Risk

10. Agenda • GRC & Systemic Risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

11. Maturity Model Golden Rule BUSINESS Sustainability Uncertainty Leadership Collaboration Risk Management Profit

12. Uncertainty Risk Management Innovation

13. Risks & Uncertainties Risk Uncertainty Reward Possibility

14. Risk-Reward & Uncertainty-Possibility Risk Reward Profiteering High profit margins Economic bubble • Tactical Risk • Price gouging • Strategic Risk • Premium brand • Systemic Risk • Externalizing risk Uncertainty Possibility • Tactical Uncertainty • New market • Strategic Uncertainty • New offering • Systemic Uncertainty • New business model • Revenue growth • Competitive advantage • New value

15. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

16. Trust = Acceptable Uncertainty Trust Definitions Trust is a person's willingness to accept and/or increase their vulnerability by relying on implicit or explicit information.

17. Certainty Acceptability Develop Trust Protect Trust Interpretive Sources of Trust Subjective assertions of the source of the information or third parties. Empowerment Relying party’s ability to choose. Trust Enablement®Framework Experiential Sources of Trust Personal experiences of the relying party or those of objective witnesses. Motive Forces Factors influencing the actions of the beneficiary (trusted party). Risk Management 2.0 Risk Management Proficiencies Aptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology). Risk Transference Mechanisms and processes that transfer risk away from the relying party.

18. A Management Innovation Trust Enablement® is both a management philosophy and a technology for business best practices. It fills a business practices void by counterbalancing risk management based control mechanisms that preserve trust, with those that develop trust, and thereby provides a complementary, foundational, new management competency. It serves to fundamentally change the leadership mindset from an inside-out to an outside-in orientation.

19. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

21. TrustEnablement.com

22. Offerings

23. Public Policy & Economic Development

24. Corporate Governance & Investment

25. Policy & Strategy

26. Risk Management

27. Information Technology & Security

28. Online Transactions & Web 2.0

29. Organizational Development & Change Management

30. Leadership, Collaboration & Innovation

31. Marketing & Sales

32. Supply Chain Management

33. Other Initiatives

34. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

35. Opportunity

36. How are we the cause in the matter? Alex Todd Trust Enabling Strategies AlexTodd@TrustEnablment.com