Timesaver

v5 April 2014
Designed by:
Salahuddin Khawaja
s@decklaration.com
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I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
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joining JP Morgan he spent 11
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I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
Organized Sections Bullets
Over the years MorphApp has evolved and it is increasingly complex to add functionality. Programs have been
launched to strategically change the core platform.

Current State
 ProcessX has evolved over the last 30 years
– Processes and systems have been cobbled together as a result of mergers and acquisitions
 The core platform has had no strategic structural change
 The organization is currently structured in functional silos

Key Issues

 Enhancing or adding functionality is increasingly complex and requires significant effort and cost
 Increasingly difficult to keep pace with the changing business landscape and providing value added services
– It is expected that current and new business strategic initiatives will make increasing demands
 The ProcessX lifecycle has become fragmented which increases internal control risks
 High risk of not being able to meet certain complex requirements

Go Forward Approach
 Launched multiple programs to move towards:
– A single integrated global Platform (from a process and technology perspective)
– The adoption of a “Utility Mindset”
– Leverage Like Functions, Centers of Excellence, Across LOBs
– Holistic business process management (alignment with client, end-to-end control framework etc.)

8
Simple Table
Overall project is green and on track. Planning, Scoping & Analysis and Build are 50% complete. Testing has
commenced and a significant number of defects have been found.

# Phase Status Progress Trend Status

 Vision workshop completed

 Determine critical path Operating Model items
I Planning Green
 Develop high-level roadmap
 Develop detailed 2013 plan

 Selected MVPs for functional delivery to Operations

 Drafted Conceptual To-Be process flows for MVP
Scoping &
2 Green  Performed analysis to validate products supported by MorphApp for the NY Market
Analysis
 Translated the existing BRD into Process Flows
 Drafted “Requirements Catalog” of existing requirements

3 Build Green  Build activities are underway

Operational
4 (Not started)  Documentation of procedures and controls to start
Readiness

 185 defects remain open

5 Testing Amber  104 are under review, 52 are in the process of being
fixed and 29 are ready for retesting

Key Not Started Initiated In Progress Closing Complete

9
Chevrons
Approach to Change – Understanding the future of the Banking Sector and a bank can get there will involve
launching a Strategic Initiative that will have 3 phases.

Approach

Phase I: Phase II: Phase III:

I II III
Strategy Development Future Architecture Roadmap

 Assess internal and external
factors (Risk Appetite,
Regulations, Technology trends
etc)
 Identify change drivers
 Perform a current state
assessment across People,
Process and Technology
 Define the strategic objectives
 Determine future state based
on strategic objectives, change
drivers and leading practices
 Perform Gap Analysis
 Develop business case and
roadmap based on project
priorities, impact, cost and
resource requirements
 Develop methodology for
prioritization and critical path of
the identified projects, and
define resources and cost
implications with executive
inputs
 Implement various program

10
Model 1

A model for strategy development …

Current State Assessment Strategy Development

Economic Environment Organizational Analysis Scenario Analysis

and Forecast Mission, Values and
Vision
Risk Appetite People
Competitive Position
Business Constraints Process
Strategic Objectives

Technology
Regulatory Drivers Industry Direction
Performance Measures
Leading Practices and Targets
Financial Modeling and
Customer Analysis
Technology Trends Planning
Geographical Regulatory Drivers
Considerations
Market Analysis Strategy Formulation
INPUTS OUTPUTS

Line of Asset Commercial Investment Private Securities Treasury

Business Management Banking Banking Banking Services Services

11
Model 2
Maturity Model – A maturity model can be used to help develop the Future State Architecture and perform the
Gap Analysis.

Value / Leader

 “Utility mindset” – Leverage

Like Functions, Centers of
Excellence, Across LOBs
Service / Advocate  Process optimized across
the enterprise and globe to
Effectiveness

support business innovation

Defined / Proactive
 Regionally defined
processes with increased
Initial / Ad hoc automation
 Functional/Product aligned
 Locally defined processes
organization
 Indigenously grown
 Fragmented focus on
organization and
customer experience
technology
 Globally defined and
integrated processes  Technology is a value
enabler and becomes a
 Business and customer
aligned organization core part of the client
offering
 Technology strategy is
developed in conjunction  Focus on customer
with the business strategy experience is embedded in
BAU
 Engaged focus on customer
 Agile business model with a
experience
decreased time-to-market

Past Today Future

12
Call Out
Developing a business case can show management the business imperative and value of adopting a particular
approach.

Components of a Business Case

1 2 3 4 5 6 7

Executive Strategy and Change Drivers Vendor Cost and Risks and Implementation
Summary Current State Evaluation Benefits Derailers Plan
Assessment
(optional)

One of the critical components of the

business case is the Total Cost of
Ownership Model

The financials show the overall

investment, break-even point
and Return on Investment
(ROI).

13
Methodology
The assessment methodology can evaluate coverage across 7 Risk Management Domains and 9 Risk
Categories

Policies,
Compliance /
Strategy Governance Standards & Strategic Financial Stability
Legal
Procedures
Confidentiality
Risk Management Processes Contractual Reputation
of Information
Communication,
Tools and Metrics and Transaction / Integrity of
Training & Business Continuity
Technology Reporting Operational Data
Awareness

Standard domains in an Enterprise Risk Program Risk Over 15 processes expected to cover these
Management Program Domains Categories 9 risks categories

Analysis was completed to determine Assessment Observations & Thematic areas of opportunities to get to
improvement opportunities Approach Recommendations the next level were identified

Interviews Governance and Reporting

Control Objectives Assessment Risk Appetite

Risk Processes and Scenarios Supplier Classification

Governance Model and RACI Analysis Supplier Risk Management Processes
Audit Analysis Other Supplier Risk Management Enhancements

14
List
Changes in technology will play a critical role in ensuring the organization maintains and extends its leadership
position over the next few years.

Disruptors Enablers

Disruptors are technologies that can create sustainable Enablers are technologies in which investments have been
positive disruption in IT capabilities, business operations and made, but which warrant another look. Enablers may be more
sometimes even business models. evolutionary than revolutionary.

1 Social Business 1 Data Analytics (aka Big Data)

2 Gamification 2 Geospatial Visualization

3 Enterprise Mobility Unleashed 3 Digital Identities

4 User Empowerment 4 Measured Innovation

5 Hyper-hybrid Cloud 5 Outside-in Architecture

15
General Timeline

XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX

2003 2004 2005 2006 2007 2008 2009 2010 2011

XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX

XXXXX XXXXX XXXXX XXXXX XXXXX

16
Timeline – Gantt Chart
The best way to plan out a project is to look at the various activities visually. The best tool to do that is a simple
Gantt Chart. A Gantt Chart is a visual representation of the various project activities.

2014 2015 2016 2017

J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

Wave 1
Develop Business Case

Develop Business Architecture Requirements

Design Technical Architecture

Development / Build

System Integration Testing Complete

User Acceptance Testing Complete

Parallel Test Complete

Go-Live

Post Implementation Review

Wave 1 Complete

Wave 2

Wave 3

Wave 4

Today

17
I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
Executive Summary 1 (Situation, Complication, Resolution)
To support the future growth of our business, lower the cost of running the Clearing process, and more efficiently
manage our business we recommend the implementation of the Strategic Enhancement Program (StEP).

Situation

 Since September 2007, we have completed the ProgramX Planning & Analysis (P&A) phase, updated the Total Cost of
Ownership (TCO) model, gathered internal & external customer views, and complied a list of key infrastructure projects

 Based on the P&A results the new proposed platform meets our needs and could be implemented within an 18-24 month
period

Complication

 Internal meetings with customer and commerce development teams confirmed that current and new strategic initiatives,
and evolving business needs will continue to put increasing demands on the legacy system

 Enhance customer experience, reduce time-to-market, improve controls and reduce costs

Resolution

 To support the future growth of our business, lower the cost of running Clearing, and more efficiently manage our
business and financial risks the program team recommends the implementation of the Strategic Enhancement Program
(StEP)

19
Executive Summary 2 (Business Case View)
To support the future growth of our business, lower the cost of running the Clearing process, and more efficiently
manage our business we recommend the implementation of the Strategic Enhancement Program (StEP).

Program Status
 Since Sep 2007, we have completed the ProgramX Planning & Analysis (P&A) phase, updated the Total Cost of
Ownership (TCO) model, gathered internal/external customer views, and complied a list of key infrastructure projects
 Based on the P&A results the proposed new solution meets our needs and could be implemented within an 18-24 month
period

Business Imperative
 Internal meetings with customer and commerce development teams confirmed that current and new strategic initiatives,
and evolving business needs will continue to put increasing demands on the legacy system
 Enhance customer experience, reduce time-to-market, improve controls and reduce costs

Financial Summary
 Implementing and operating the new system is essentially cost neutral over a 10 year period
 The 10 year tax effected NPV cost for implementing and operating new system is $XX.X M compared to operating the
legacy system is $XX.X M

Recommendation
 To support the future growth of our business, lower the cost of running Clearing, and more efficiently manage our
business and financial risks the program team recommends the implementation of the Strategic Enhancement Program
(StEP)

20
Executive Summary 3 (Analysis Summary)
The cross functional team has determined that the UAT can be executed in the timeframe
with the resources allocated

Background
 Key Question: is the ProgramX program adequately resourced across key groups to support the UAT phase
 Key Groups: Operations, QA, Development, Finance

Analysis
 A cross functional team performed the following analysis:
 Detailed out the UAT Test Plan (activities, timeline and roles and responsibilities)
 Determine headcount and their % allocation to UAT activities for each group
 Performed test case/scenario analysis in the context of UAT activities, timeline and resource availability
 Developed assessment framework to analyze feasibility of successfully executing the UAT phase
 Analyzed results to come up with a set of conclusions

Conclusion To-Date
 Overall, the team has determined that the UAT can be executed in the timeframe with the resources allocated
 We have reached a common understanding that testing at the scenario level facilitates successful completion within 8 weeks
 21 UAT testers compares favorable to 22 System Testers
 The 8 week UAT test window has no contingency built-in (however, there is a 4 week overall program contingency)

Next Steps
 As per original plan, the UAT resource plan will be updated based on the following:
 Finalization of the UAT Game Plan which will detail out the planned activities
 Agreement on the acceptance and exit criteria
 Finalization of test cases/scenarios (currently test cases for 3 of 14 areas have been developed)

21
I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
List 1 – Simple
The ProgramX system has been operating in a near-full volume production mode for 3 months. The following
metrics illustrate some of the progress that has been achieved across various areas of the program.

1 Design for Growth

2 Design for Efficiency and Centralized Strategic Guidance

3 Design to Balance Flexibility and Integration

4 Design for Robust Governance

5 Design for Collaboration

6 Design for Clear Accountability

7 Design with Market and Customer Focus

23
List 2 – Depicting Numbers

The mobile revolution is underway – enterprises need to capitalize.

Smartphones 1 Billion # of Smartphones worldwide

Mobile Apps 200+ Billion # of Apps downloaded per year

Tablets 96.3 M # of Tablets in the enterprise by 2016 (up from 13.6)

Mobility 75% Ratio of all workers that have some level of mobility associated with their job

PC Shipment -5% US PC Shipments is falling by 5%

App Development 4x Mobile app development projects will outnumber PC projects by 4 to 1

24
Chevrons 1 – Timeline / Roadmap
The future roadmap is a culmination of the ERM enhancement assessment and the actionable initiatives from
the current state assessment and gap analysis.
Vision and Strategic Objectives
Definitions
Defined ERM program
objectives and
enhancements to evolve
the ERM Program to the
next level based on key
internal and regulatory
drivers
Approach
Current State Assessment Recommendations Roadmap Development†
Analyzed the current Identified projects and Develop methodology for
landscape and initiatives to address the prioritization and critical
composition, risk recommendations and path of the identified
categorization realize strategic benefits projects, and define
methodology, and risk resources and cost
management processes to implications with executive
evaluate efficacy of the inputs
current state and identified
gaps. Proposed
recommendations based
on gaps and improvement
areas identified, and
validated with key
stakeholders
25
Chevrons 2 – Process
Supplier Risk Management is broken up into 3 parts: pre-contract, post-contract and close out. It has 9
components.

Event KRI
Management Monitoring

Pre-contract Risk
Sign Contract Risk Close Out
(Due Diligence) Identification
Response

Risk
Controls Assessment
Evaluation

26
Chevrons 3 – Circular

Text Text
Text

Text
Text
Text
Text
Text Text

Text Text

Text Text
Text Text

27
Chevrons 4 – Methodology
The core assessment will occur at the management process level. The management processes can be broken
up into three life-cycle phases, each with a distinct set of control objectives.

1. Pre-contract 3. Post- Contract

2. Contract
(Due Diligence) (Execution)

1.1 Supplier Selection 2.1 Standard Template 3.1 Customer Complaint Management

1.2 Supplier Classification 2.2 Contracting Process 3.2 BSRM Survey

1.3 Reputation/Ref Check 2.3 Performance / Reward 3.3 Performance Management

1.4 Financial Stability 2.4 NDA 3.4 Capacity Management

1.5 Use of Sub-contractors 2.5 Local Legal/Regulations 3.5 Compliance Management

1.6 Compliance practices 2.6 Policies 3.6 Periodic Contract Review

1.7 Information Security 2.7 Right to Audit 3.7 Bankruptcy Monitoring

1.8 Sanction Screening 3.8 Key News Event Monitoring

1.9 Contingency Planning 3.9 COB Assessment

3.10 Contingency Plan Monitoring

3rd Party Collection Demand letter

Collection Placed Start collection
Agency Selected and phone
action
calls

Close Collection process Interim

account reporting

Debt collection Legal

and action (if
remittance necessary)

28
Pyramid 1 – Three Levels

What we are delivering

Program View

Business
Delivery

How we are organized to

deliver
Operational
Delivery

How tech will delivery

Technical
Delivery

29
Pyramid 2 – Multi-dimensional

MISSION

Leading
Bank

VALUES
Performance

Trust Commitment

VISION

Client Service

30
Venn Diagrams

Text Text Text

Text Text

Text Text Text Text

31
Circle 1 – Basic

Shareholders Board

Management Customers

MISSION
VALUES
VISIONS

Employees Society

Regulators Partners

32
Circle 2 – Callouts
Key to getting the certification is getting a deep understanding of the 9 Knowledge Areas and their corresponding
sub-process (a total of 42).

 Develop Project Charter  Collect Requirements

 Develop Project Management Plan  Define Scope
2
 Direct and Manage Project Execution 1  Create WBS
 Monitor and Control Project Work  Verify Scope
 Perform Integrated Change Control  Control Scope
Integration Scope
 Close Project or Phase
Management Management
4  Estimate Cost
 Define Activities 3  Determine Budget
 Sequence Activities  Control Costs
Time
 Estimate Activity Resources Cost Management
Management
 Estimate Activity Durations
 Develop Human Resource Plan
 Develop Schedule
 Acquire Project Team
 Control Schedule
 Develop Project Team
Quality Human Resource 6  Manage Project Team
Management Management
 Plan Quality
 Perform Quality Assurance  Plan Risk Management
5
 Perform Quality Control  Identify Risks
Communications  Perform Qualitative Risk
Risk Management Analysis
Management 8
 Perform Quantitative Risk
 Identify Stakeholders
Analysis
 Plan Communication
7  Plan Risk Response
 Distribute Information
Procurement  Monitor and Control Risks
 Manage Stakeholder Management
Expectations
 Report Performance
9  Plan Procurements
 Conduct Procurements
 Administer Procurements
 Close Procurements
33
Circle 3 – Orbit

X X

X X X

X X

34
Circle 4 – Cross-hair

Company Division

Customer

Invoices

Detailed Reports

Product/
Region
Service

35
Circle 5 – Flow (4 steps)

Heading
[Summary text]

Heading Heading
Focus
[Summary text] [Summary text]

Heading
[Summary text]

36
Circle 5 – Flow (5 steps)

Heading
[Summary text]

Heading Heading
[Summary text] [Summary text]

Focus

Heading Heading
[Summary text] [Summary text]

37
Honeycomb

Major Lines
of Business
2 3

Risk Audit &

Management Risk Review

Risk
Management
4 5

Compliance Operations &

Control Technology
6

Finance

38
Organizational Chart

Name_here
Title_here

Name_here
Title_here

Name_here
Responsibility1
Responsibility1

Name_here Name_here Name_here Name_here Name_here Name_here Name_here

Responsibility1 Responsibility1 Responsibility1 Responsibility1 Responsibility1 Responsibility1 Responsibility1
Responsibility2 Responsibility2 Responsibility2 Responsibility2 Responsibility2 Responsibility2 Responsibility2

Name Name Name Name Name Name Name

Role Role Role Role Role Role Role

Name Name Name Name Name Name

Role Role Role Role Role Role

Pillar_name_here Pillar_name_here Pillar_name_here

39
Cube 1 – Basic

Operation
Integration
Business Requirements

Engineering
Planning
Technical Requirements

Operational Requirements

Regulatory Requirements

40
Cube 2 – Multi-layered

Svc2 Svc 3

App2

Svc1 App1

Cash
Operational
Support and Securities
Control

Capacity Management & Workstream Coordination

Simplified App & DB Infrastructure

Virtualized Operating Platforms

41
Cube 3 – Callout
In order to reconcile each feeder, the teams are working across a number of challenging areas. Each must be
properly aligned in order for the new system to reconcile to legacy system.

An increase in incidents have occurred over Defects continue to be worked through,

the last 3 weeks; delays in schedules limit the (impact: untimely billing, duplicate or missed
review time of business analysts files and rates/tiers issues)

Tiers are being deep dived to ensure they are

working properly
Tiers

Changes are identified during review of daily Rates

Defects
and weekly bill runs
Changes are made in PROD once weekly and
DR twice weekly Matching Rules

Key items within customer setup method must

be maintained
Customer setup

Two change requests for filters are underway

to ensure the proper filtering Filters

42
Architecture – Option 1 – Layered
Broker/Dealer Processing Environment

Manual
interventions &
Relaying SWIFT redundant
SWIFT FAX
other products Gateway
processes built
to overcome
technology and
Product operational
Specific Front Office Back Office shortcomings
Processes & Bank Adjustments
Architectures T+2
T+3
Corporate
Foreign Exchange Reconciliations T+1
Foreign Exchange
Derivatives Bank Adjustments
Consolidations

Foreign Exchange Reconciliations

T+3
T+2
Bank Adjustments Money Market T+1

Money Market Reconciliations Corporate

T+3
Credit
Numerous
Bank Adjustments T+2
Equity T+1 reconciliations
Equity
Reconciliations are required to
Business logic T+3
Bank Adjustments T+2 ensure data
imbedded into Derivatives Derivatives T+1
Reconciliations Corporate integrity
product specific
T+3 Risk
systems Fixed Income
Bank Adjustments
T+1
T+2
Fixed Income
Reconciliations
Firm-wide
operational
information is
Product-Based Reference and Reference Data Books and Records
hard to
Operational Data
assemble
Redundant
Indicatives Corporate quickly and
reference data FX MM EQ Deriv FI
and Accounting GL accurately
sources stored
in product silos

Front Office Reporting Management and Corporate Reporting

Trader Excel Tender P&L Risk and Public & Corporate Other
Positions Based (T+3) Compliance Regulatory Tax

 Technology infrastructure is fragmented, inconsistent and costly to maintain

 Systems are batch cycle oriented, disallowing real-time processing
 Data is inconsistent and redundant, complicating production of enterprise wide risk and performance information

43
Architecture – Option 2 – Pillars
Application Integration
Services
 These services are the “glue” that
hold all other services together.
 They provide seamless integration
and communication capabilities to
ensure reliable transaction
processing
Content Based Routing
Service
Message Transformation
Service
Protocol Transformation
Service
Queuing Service
Transport Services
Application Support
Services
 These services form the core
business engine
 They are represented as running
throughout the infrastructure
providing successful transaction
management capabilities at all times
Data Consolidation Service
Data Enrichment Service
Data Transformation
Service
Data Validation Service
Exception Reporting
Rules Management
Transaction Monitoring
44
System Management
Services
 These services are represented as
the core of the infrastructure.
 They interoperate with all of the
other services and provides system-
wide management to enable
coordination of resources, processes
and technology
Application Management
Capacity Management
Database Management
Disaster Recovery Service
Event Management
Network Management
Output Management
Reporting
Workload Management
Security
Services
 These services are represented as
the core of the infrastructure.
 They interoperate with all of the
other services and provides system-
wide management to enable
coordination of resources, processes
and technology
Access Control Service
Authentication Service
Authorization Service
Encryption Service
Roles & Profiles
Single Sign on
Architecture – Option 3 – Tunnels
The architecture is illustrated as the “pipe” between processing nodes as represented in the functional model. It
is the sole conduit of transactional data across applications both internally and externally.

PORTAL FRONT OFFICE BACK OFFICE

Derivatives Derivatives
Corporate

Equity Equity

Derivative
Fixed Income Fixed Income

Equity
Foreign Exchange Foreign Exchange

Foreign Exchange Derivatives Foreign Exchange Derivatives

Corporate Corporate Corporate
FI
Money Market Money Market Consolidation Risk Credit

FX
Security Services
Application Integration Services
Adapters

Adapters
FX Deriv
Application Support Services

MM System Management Services

Product-Based Reference and Reference Data Books and Records

Operational Data

Indicatives Corporate
FX MM EQ Deriv FI
and Accounting GL

Front Office Reporting Management and Corporate Reporting

Trader Excel Tender P&L Risk and Public & Corporate Other
Positions Based (T+3) Compliance Regulatory Tax

45
Architecture – Option 4 – Multi-component

Future
Components

Message Transport

Message Transformation, Enrichment,

Routing & Error Handling

Legacy Adapters
Optional
Message Repository

Optional Optional

Core Components

Services
Core Components

Core Components
Business Analysis &
Project Management

Core Components
Technical Solution Delivery
Technical Infrastructure Services

Optional Optional

Optional
Services
Services

Real-time for Capital

Markets - SWIFT Offering

46
Architecture – Option 5 – Multi-component and Layers

INVESTMENT ADVISORY CLIENT SERVICE

Web Access
Advisor Workstation
Call Center
Advisor Workstation Web Access
CRM Fees and Invoicing
Call Center
Advisor Workstation Web Access
Client Reporting
Market CRM Fees and Invoicing
- Customer
Account Maintenance Client DataCall Center
Advisor Workstation Client Reporting
Web Access
- Products CRM Fees and Invoicing
CompanyX
CompanyX
Account Maintenance Call Center
Advisor Web Access
Client Reporting
- Delivery CRM Workstation CompanyX Fees and
Private Invoicing
Bank
- Geographies CompanyX Private
Account Bank
Opening Call Center
Client Reporting
International PrivateCRM
Bank InternationalFees andBank
Private Invoicing
Client Reporting
Personal Wealth Management Personal Wealth Management

Institutional (IIG / IFG) Institutional (IIG / IFG)

PRODUCT SUPPORT ORDER PROCESSING ACCOUNTING / CUSTODY

Clearing / Custody
Order Entry Settlement
Analytics
Confirms
Order Routing “Brokerage” Accounting
Trust Accounting (SEI)
Research Brokerage Statements
Order Execution
Compliance
Common Platform Common Platform Common Platform

MARKET DATA

Securities
Reference Data

Common Platform

47
I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
Status Report 1
Overall project is green and on track. Planning, Scoping & Analysis and Build are 50% complete. Testing has
commenced and a significant number of defects have been found.

# Phase Status Progress Trend Status

 Vision workshop completed

 Determine critical path Operating Model items
I Planning Green
 Develop high-level roadmap
 Develop detailed 2013 plan

 Selected MVPs for functional delivery to Operations

 Drafted Conceptual To-Be process flows for MVP
Scoping &
2 Green  Performed analysis to validate products supported by MorphApp for the NY Market
Analysis
 Translated the existing BRD into Process Flows
 Drafted “Requirements Catalog” of existing requirements

3 Build Green  Build activities are underway

Operational
4 (Not started)  Documentation of procedures and controls to start
Readiness

 185 defects remain open

5 Testing Amber  104 are under review, 52 are in the process of being
fixed and 29 are ready for retesting

Status R Red A Amber G Green N Not Started H On Hold C Complete U No Update

KEY Trend Positive Negative Even

Progress Not Started Initiated In Progress Closing Complete

49
 Status Rating G
Status Report 2

Current status is Green for Go Live on Nov 5. Phase 2 scheduled for Q2 2013.

Phase Status Progress Achievements Current Focus / Next Steps

 82% UAT Test Cases completed (75% passed)  Complete UAT by October15th
 58 defects remain open (18 are critical)
Phase IV:
Amber  Total 122 defects have been opened till-date
UAT
 Due to high number of defects UAT Sign off delayed to
Oct 15 (from Sep 28)

 Parallel Plan framework developed; details are being  Complete Parallel Plan by October 5th
Phase V: documented  Finalize action plans to address risks
Green
Parallel Plan  Risk have been identified (environment, reference data  Parallel run to start Oct 16th
etc) and action plans are being developed

 Go-Live and Migration plan being developed  Complete Go-Live and Migration plan by Oct 12th
Phase VI:
Green  Plan developed to communicate to external stakeholders
Go Live during the week of Oct 15

2014 2015
J F M A M J J A S O N D J F M A M J

Build
System Integration Testing

UAT
UAT Completed A

Parallel Testing
R Red A Amber G Green
KEY N Parallel Test Complete
H On Hold C Complete N Not Started
N Phase 2 Go Live
Go Live Nov 5 (TBD)

50
Gantt Chart
The best way to plan out a project is to look at the various activities visually. The best tool to do that is a simple
Gantt Chart. A Gantt Chart is a visual representation of the various project activities.

2014 2015 2016 2017

J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

Wave 1
Develop Business Case

Develop Business Architecture Requirements

Design Technical Architecture

Development / Build

System Integration Testing Complete

User Acceptance Testing Complete

Parallel Test Complete

Go-Live

Post Implementation Review

Wave 1 Complete

Wave 2

Wave 3

Wave 4

Today

51
Gantt Chart – Variations and Symbols

Various variations and symbols can be used to give more dimensions/depth to visual Gantt charts

2014 2015 2016 2017

J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

99%

RAG Milestones
Sprints
R Red

A Amber

G Green

H On Hold
C
Complete
N Not Started

18 Days Additional Symbols

Delay

Build Complete +
(In Stages)

Today

52
Objects – Harvey Balls and Status

Not Started Not Started

Red: Major delay

Initiated R Identified
(3+ weeks delay)

Amber: Slight delay

In Progress A Underway
(1-3 weeks delay)

G
Green: On track (0-1
Closing Significant Progress
week delay)

Complete Complete

Status R Red A Amber G Green N Not Started H On Hold C Complete U No Update

KEY Trend Positive Negative Even

Progress Not Started Initiated In Progress Closing Complete

53
 R Green (On track)
A Amber (At risk)

Dashboard – Overall Project Summary G Red (Off track)

# Key Areas Status Trend Initiative Status

Subcategory Project Name G

Project Name G Project Name G Project Name G Project Name H

Subcategory Project Name G Project Name A Project Name G Project Name A

Strategic
1 G
Initiatives Project Name A Project Name G Project Name G

Subcategory Project Name G Project Name G Project Name G Project Name H

Subcategory Project Name G Project Name G Project Name G Project Name G

Subcategory Project Name G FATCA G Project Name G Project Name C

Project Name G Project Name G Project Name G Project Name G

Subcategory
Tactical Project Name G Project Name G Project Name G Project Name G
2 G
Initiatives
Subcategory Project Name A Project Name A Project Name A Project Name R

Subcategory Project Name G

Project Name G Project Name G Project Name G Project Name G

Subcategory
Project Name G Project Name A Project Name P Project Name G
3 Category 3 G

Subcategory Project Name G

4 Category 4 G Subcategory Project Name G Project Name G

54
Risk/Issue Template
Target
Type Title Description Impact Mitigation Strategy Impact Owner Date Raised
Date
Red

Red

Amber

Amber

Green

Green

55
Actions Item Template
# Item Action Update Owner Date Opened Status

1 Day 2 Items Management requested that the program  Manual Workaround are being tracked; once consolidated
team get firm commitment from the Global will be taken up to the Global Steering Team
Steering Committee that any Day 2 items (i.e.
items that are addressed in the interim by  Day 2 Items being tracked by project teams to ensure Jack June 7 Open
manual work around) will be delivered and delivery
would be outside the BAU budget demand
queue.

2 Production Review issues that resulted in the parallel  Post Mortem and Lessons learned completed on Jul-9
Parallel being turned off on 4-Jul Jane July 5 Closed

56
Project Dashboarding

Risk and Issues are communicated to management via the Dashboarding process.

Overall Status Gantt / Roadmap Additional Comments

Slide 58 Slide 59 Slide 60

Risk / Issue Post Implementation Off-Track Template

Slide 61
Slide 62 Slide 63

57
 RAG Status

Manager: Tech Lead: Initiative Lead:

Initiative Background Current Status Summary

Objective

Achievements Current Focus / Next Steps

Scope

Dependency

Benefits/ROI

Financials

Priority: Risk

Completion Date:

58
 RAG Status

Manager: Tech Lead: Initiative Lead:

Roadmap – Gantt

2014 2015 2016 2017

J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

R Red A Amber G Green

KEY
H On Hold C Complete N Not Started

59
 RAG Status

Manager: Tech Lead: Initiative Lead:

Additional Comments

60
 RAG Status

Manager: Tech Lead: Initiative Lead:

Risks / Issues
Target Close
# Risk / Issue Owner Type Severity Likelihood Open Date Change Mitigation Strategy and Current Status
Date Date

61
 RAG Status

Manager: Tech Lead: Initiative Lead:

Post Implementation Review

Planned Objectives Achieved Objectives Gap / Delta

62
 RAG Status

Manager: Tech Lead: Initiative Lead:

Off Track

Off-track Summary Root Cause Get Well Plan

63
I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
Slides
presented in
this section are
in no particular order …

- 65 -
Business Transformation Approach

A complex business transformation could take multi-years. Not all phase’s depicted below are necessary.

2014 2015 2016 2017

J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

Phase I: Strategy Assessment I

Phase II: Business Case

II
and Roadmap

Phase III:
III
Vendor Selection

IVPhase IV:
Program
Implementation

66
Business Transformation Approach – Details

High-levels steps of the 4 phases are detailed below.

Approach

Phase I: Phase II: Phase III: Phase IV:

I II III IV
Strategy Assessment Business Case & Roadmap Vendor Selection Program Implementation

 Define overall vision and  Develop business case
strategic objectives
 Perform a strategy &
current state assessment
across People, Process
and Technology (identify
gaps)
 Determine target state
based on strategic
objectives, change
drivers and leading
practices
 Document high-level
and roadmap based on requirements; issue RFI
project priorities, impact, and RFP
cost and resource
 Conduct Deep Dive
requirements
Assessments
 Conduct reference calls &
customer visits
 Performed independent
research
 Performed due diligence
 Develop methodology for
prioritization and critical
path of the identified
projects, and define
resources and cost
implications with
executive inputs
 Sign agreements with
vendors (MSA, SOW etc)
 Implement various
program and project
initiatives.

67
Strategy: Plan to Change

Mobile applications should be developed using a methodology tailored for mobile devices

Approach

I Define II Design III Develop IV Deploy

 Defined mobility goals  Develop mobile use  Develop various mobile  End to end testing
(revenue, efficiency, cases products
 Launch various mobile
customer experience  Process requirements  Develop/modify services products
etc.)
 User interface  Mobile web
 Integrate mobile with
 Define business case and  Data requirements existing channels  Mobile app
prioritize the roadmap
 Develop overall solution  System Testing  Blog
 Budget approval architecture  Social Media
 Current state assessment  Develop wireframes
of Mobility infrastructure Prototype critical features
 Develop launch approach

68
Program Vision and Strategic Principles
The Program Management Office (PMO) vision and associated strategic objectives guide all change related
activities.

Program Office Vision

Manage and execute all change initiatives to help maintain a

leadership position in Trade Processing.

Strategic Objectives

1 Continuously improve efficiencies (initially by consolidating processes and systems)

Tier 1 2 Address existing and new regulatory requirements

3 Partner with key stakeholders to drive enhanced experience and new functionality

4 Ensure a structured and methodical approach is in place to manage change

Tier 2 5 Streamline processing business and technical architecture to increase time to market

6 Enhance organizational capabilities

69
Strategy Development Framework
Approach to Strategy Development – A strategy can be developed based on a current state assessment in
conjunction with a set of external/internal inputs.

Current State Assessment Strategy Development

Economic Environment Organizational Analysis Scenario Analysis

and Forecast Mission, Values and
Vision
Risk Appetite People
Competitive Position
Business Constraints Process
Strategic Objectives

Technology
Regulatory Drivers Industry Direction
Performance Measures
Leading Practices and Targets
Financial Modeling and
Customer Analysis
Technology Trends Planning
Geographical Regulatory Drivers
Considerations
Market Analysis Strategy Formulation
INPUTS OUTPUTS

Line of Asset Commercial Investment Private Securities Treasury

Business Management Banking Banking Banking Services Services

70
Maturity Model
Background
 The Finance Department has played a critical role over the years from both a revenue and business support perspective
 We have evolved globally as a result of marketplace demands, mergers and acquisitions and changes in regulations
 The existing platform has been developed in an unstructured manner, resulting in a fragmented lifecycle
 Varying drivers have resulted in a compelling business case to strategically re-architect the platform

Value / Leader

 “Utility mindset” – Leverage

Service / Advocate
 Globally defined and
integrated processes
Defined / Proactive
 Business and customer
Effectiveness
Like Functions, Centers of
Excellence, Across LOBs
 Process optimized across
the enterprise and globe to
support business innovation
 Technology is a value
enabler and becomes a core

 Regionally defined aligned organization part of the client offering

Initial / Ad hoc
 Locally defined processes
 Indigenously grown
organization and technology
processes with increased
automation
 Functional/Product aligned
organization
 Fragmented focus on
customer experience
 Technology strategy is  Focus on customer
developed in conjunction experience is embedded in
with the business strategy BAU
 Engaged focus on customer  Agile business model with a
experience decreased time-to-market

Past Today Future

71
Forrester’s Mobile Maturity Model
Background
 Everyone needs a mobile strategy, but what is the right approach and what are the appropriate objectives and metrics? To help
product strategists and executives in charge of defining their company’s mobile consumer approach build winning mobile strategies,
Forrester has created a mobile maturity model.
 Developing a mature mobile consumer strategy will help firms more easily adapt to new consumer behavior and to anticipate the
disruption that mobile consumer technologies will increasingly create.

Value / Leader

Service / Advocate
 Models excel at most of the
 Practitioners are companies core mobile disciplines and
that have agreed on a  Models are often large firms
Defined / Proactive shared mobile vision and are that have committed
starting to implement it
Effectiveness

 Experimenters have
Initial / Ad hoc
 Novices are the least mature
mobile organizations
launched different mobile
initiatives and have
experience with different
technologies but lack a clear
vision of what they want to
achieve via mobile
significant resources to
successfully. mobile and have top-level
 Usually companies that executives championing
understand the disruptive mobile efforts.
potential of mobile, even
though they haven’t yet
dedicated significant
resources to it.

Past Today Future

72
Business Case
Developing a business case can show management the business imperative and value of adopting a particular
approach.

Components of a Business Case

1 2 3 4 5 6 7

Executive Strategy and Change Drivers Vendor Cost and Risks and Implementation
Summary Current State Evaluation Benefits Derailers Plan
Assessment
(optional)

One of the critical components of the

business case is the Total Cost of
Ownership Model

The financials show the overall

investment, break-even point
and Return on Investment
(ROI).

73
Process Analysis – SIPOC
SIPOC Framework is a Six Sigma tool used for process analysis and can be used to perform a current statement
assessment.

S I P O C

Suppliers Inputs Process Outputs Customers

Provider of inputs to Materials, resources A structure ser of Products or services The recipients of the
the process or data required to activities that transform a that result from the process outputs
execute the process set of inputs into specified process
outputs, providing value
to customers and
stakeholders

Process is typically broken into 5-7 steps

Start Step 1 Step 2 Step 3 Step 4 … Step X End

74
SIPOC Analysis – Example
Process – File Interfaces
Definition
File Interfaces contain batch detail transaction files extracted from the various source systems or are manually created utilizing the manual upload process. Interfaces are developed and
maintained by Technology

Supplier # Issue/Concern
 Business unit source applications
 Source systems
Data Quality and Integrity:
 Input data has missing data (in the interface file). The input data frequently has
Input
invalid customer names, invalid dates, etc
1
 MorphApp Transaction files  Lack of source ownership/responsibility on the delivery of the interface files
 There are 75 Interfaces with 20+ source feeding systems  Lack of automated tools to track file delivery from source systems
 Lack of appropriate controls at source systems such as reconciliation processes
Process before files are transmitted

 In the majority of cases data extracted from source system is not filtered Exception Management:
 Internal control processes are not standardized and most of the exceptions are not
 Interfaces are owned by the source applications except for SystemY and SystemZ
auto generated.
 The five largest sources for transaction data files are A, B, C, D and E
 There are 36 exception reports (5are automated) in the report verification process
 Interface data is extracted from various sources (e.g. Oracle Tables, flat files) with
2 which are categorized by Job name and ID.
no overall standardization
 Manual reports are organized specifically by process and are performed on a daily
 File interfaces have different delivery frequencies (e.g. daily, weekly, etc.)
and weekly basis
 Interfaces are automatically reconciled/validated for the following:
 High number of false positives impacts the time spent on reviewing the exception
- Number of records
reports
- Date and time stamp
- File duplication through audit history
 File that do not meet variance are sent to feeders or an exception report is created
Standardization and Lack of Controls in the Environment:
3
 Limited standardization of interface files
 Interface logic is hard coded without proper documentation
Customer

 DepartmentX
Flexibility and Extensibility:
 Quality of the interface file coding impacts performance and maintenance
Output 4  Overuse of “Generic Tables” instead of control cards
 Various exceptions reports  Highly manual process of keying revenue for users
 The output of the file interface is a non-standard flat file that is passed on as input  Reliance on hard coding and generic tables
into the feeders

75
Rationale for Platform Upgrade
Varying drivers have resulted in a compelling business case to strategically re-architect
the processing platform.

Move to a process driven

construction that is region agnostic
Highly disjointed and has become
increasingly costly to maintain (30
Process years of accretive development)
Deliver a solution which supports a Driven
growing global business footprint Setup
Aging
Globalization
Systems

A renewed focus on increasing

Compliance with regulation is operational efficiency
becoming complex
Operational
Regulation
Efficiency

Pressure to quickly deliver

Maintain and extend our functionality to support new
competitive, business and Industry Time-to- business, products and services
operational leadership Leader Market
Customer
Experience

A more efficient process will improve the

experience of internal and external stakeholders.

76
Derailers – Key Implementation Risks
As with any large undertaking, we foresee a series of risks that can potentially derail various programs and
projects under the PMO umbrella.

1 Accelerated implementation approach

2 Resources constraints

3 New regulations or changes to existing ones

4 Budget

5 Key Dependencies on multiple external initiatives

7 Vendor dependencies for some program

8 Organizational strategy changes

9 Shift in priorities

77
Roadmap Development Approach

A structured and methodical approach was used to develop the roadmap.

Roadmap Development Approach

Part III
Part I Part II Part IV
Prioritization and
Project Templates Project Consolidation Roadmap Development
Dependency Analysis

 Request Project owners to  Consolidate project  Perform cost/benefit analysis  Develop strategic roadmap
complete Project scoping information to determine prioritization
 Identify initiative
interdependencies

78
Project Template

Simple template to gather high-level project information.

Project Name  X Information Accuracy

Operational Efficiency
Project
 X
Description
Enable Growth N/A

Value Add – External

Project Size High / Medium / Low
Customers

Project Value Add – Internal

High / Medium / Low
Complexity Customers

Project Timing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Customer Experience

2011 2012

Project Impact X Process X System X Organization Security and Reliability

79
Roadmap – Option 1
2013 2014 2015 2016
J F M A M J J A S O N D Q1 Q2 Q3 Q4 Q1/2 Q3/4 Q1-4

Develop Business Case

Select Vendor

Operating Model and

Business Architecture

Scoping & Analysis

(Requirement Definition)

Sprint 0 Complete
(Entry into Build)
Build Complete
(In Agile Sprints)

System Test Complete

UAT Complete

Parallel Test
Complete

Update Business Case

Go Live

Decommission
Legacy System

Post Implementation
Review

80
 Roadmap – Option 2
Point of Departure
Charge and Credit US – Canada HFM
Cards Walker GL
Consolidation and
Travel Related External Reporting
Services
(TRS)
EMEA
Stored Value Products
Walker GL

Operational Data Store

Travel Agency Services

J/APA
Walker GL
 Management Reporting
- Network Services
LA/C
GRS

Management Allocations and

 TRS (GRS)
- Merchant Acquisition Management Reporting
Walker GL
- Merchant Processing

 AEB (Hyperion Enterprise)

Propriety Payment

 Multi-Dimensional (Product,
18  Oracle GL EMEA (Walker)
Installations
FAS GL
Hyperion Enterprise
Customer)
Financial Products and AEB Management
Services American Express Reporting and
- High Net-Worth Bank AEB External Reporting
Affluent Individuals (AEB) 6 Installations
(Outside US) Non-FAS GL

Financial Products and

Services
- Financial Institutions
(Worldwide)

 Oracle GL LA/C
 Foundational Future State Design (Walker)
 Develop Strategic COA
 Review Corporate & BU Processes
 Project Governance and Structure  Financial Accounting
Services Hub
 Pilot GL and Reporting Foundation
 Oracle GL - Ledger Unit 021
 AXP Consolidation Ledger

 External Reporting (FCH) Point of Arrival

 AXP (HFM)
 AEB (Hyperion Enterprise)

 Oracle GL TRS US-

Canada (Walker)

 Oracle GL J/APA
(Walker)

 Oracle GL AEB
(FAS / non-FAS)

81
Vendor Evaluation – Approach

A full blown vendor evaluation could include up to 7 phases.

Phases

Deep Dive Ref. Calls & Independent Total Cost of

RFI RFP Due Diligence
Assessments Customer Visits Research Ownership
Weight

N/A 15 30 15 5 25 10

 Determine RFI  Determine RFP  Develop  Determine  Identify relevant  Determine  Review
approach approach detailed deep customers to be Independent business & historical &
dive agenda & part of the Research technology cost projected
 Draft/issue RFI  Document RFP schedule reference calls organizations components financial data
requirements and visits provided by
 Develop RFI  Develop dive  Schedule and  Refine high-
response  Draft/issue RFP companies or
assessment  Develop conduct level program available via
evaluation framework and assessment Independent timeline
 Develop RFP
Key Activities

criteria & public filings

response scoring framework and Research calls
assessment mechanism scoring  Document High-  Model to
framework evaluation  Create level business
criteria and mechanism determine the
 Conduct deep Independent and technology likelihood of
 Score RFI assessment dive analysis  Conduct calls & Research cost estimated
responses framework bankruptcy
visits assessment
 Create vendor decks  Developed TCO  Assess overall
 Create vendor  Score RFP deep dive  Create Ref. Call model
profiles for financial
 Create vendor assessment and Customer strength based
short-listed based on onside assessment
vendors profiles for on financial data
short-listed reviews deck
vendors

82
Vendor Evaluation – Guiding Principles
A set of principles should be defined to guide the Customer Relationship Manager (CRM) vendor evaluation
process.

Select a flexible, functionally rich, and industry proven package that can support
1 our CRM vision and objectives

2 Work with a strategic partner that is proven in the CRM space

3 Any vendor/solution selected is expected to have a 80 to 85% fit

Limited customization of the CRM product will be undertaken to ensure that

4 inherent product functionality and flexibility is not degraded

Ensure ability to take ownership of product (not source code) and support with
5 minimal reliance on vendor post implementation

83
Option Analysis

Phase Option 1: Go West Option 2: Go East

 Pro 1  Pro 1
Pro  Pro 2  Pro 2
 Pro 3  Pro 3

 Con 1  Con 1
Con  Con 2  Con 2
 Con 3  Con 3

 Conclusion ????

84
Program Implementation – Organization
The Program System Implementation has 4 key roles: Program Office, Business Integrator, Systems Integrator
and Solution Delivery

Program
Office Clearing Development
The organization has department with support from
established a PMO staffed other tech departments is
by Consulting resources. responsible for performing the
Systems Integrator role

Business System Systems

Integrator Implementation Integrator

The vendor will perform the

The Clearing department is application configuration,
responsible for performing customization, module
the Business Integrator role integration, data migration
and documentation of the
vendor software products
Solution Delivery

85
Program Implementation – System Implementation
Program Management
Status Reports
Scope Management
Financial Management Create approach and detailed plans
Risk Management for activities such as ‘Go-Live’
Lead the overall Program
planning, Data reconciliation, UAT
Management stream to monitor Integrated Work Plan
resource planning, Parameterization,
program effectiveness, track progress, Communication Management and UAT game plan with support from
identify program risks/issues, enable
various teams.
creation of mitigation strategies, Overarching Integration
manage change control activities and
UAT Plan Work jointly with QA team to develop
report on program status.
Parallel Testing Plan detailed UAT and Parallel Testing
Knowledge Transfer Plans.

Release Management
Data Migration
Business Integration Go-Live Plan Technology Integration
Functional Requirements Technical Requirements
Communication Plan Infrastructure
Data Migration Security
Review and QA Vendor Management Review and QA
Vendor Management

Assist with Functional Requirements Management
and the execution of the Communication Plan
(internal/external customers). Manage ongoing data
migration activities. Review design documents to
determine tables/fields required for data migration.
Interface with the new system around:
RTM, Change Control, Contracts,
Requirement Facilitation, Issue
Escalation/Resolution and Communication
Work jointly with Tech to address a variety of
technology implementation areas including
Infrastructure sizing, Data Migration, Environment
management, Security, Performance Testing and
Reporting

86
Business Strategy and the 3 P’s
To manage change the Program Management Office (PMO) is tasked with putting in a disciplined approach
towards: Portfolio Management, Program Management and Project Management.

Business Strategy Program Management

A group of related projects managed

Corporate and Individual Business
unit strategies that define the
direction of the corporation
in a coordinated way to obtain
benefits and control not available
Business Strategy from managing them individually

Portfolio Management

Program Management
Portfolio Management Project Management

The effective, centralized

management (including identifying,
prioritizing, authorizing and
controlling) of a collection of projects
or programs and other work that are
grouped together to meet strategic
business objectives. The projects or
programs of the portfolio may not
necessarily be interdependent or
directly related
Project Management A project is a unique process
consisting of a set of coordinated and
controlled activities with start and
finish dates, undertaken to achieve
an objective conforming to specific
requirements including the
constraints of time, cost and
resources

87
Requirements Traceability Matrix (RTM)
The RTM provides a framework to trace the requirements to the types of testing being performed to ensure
complete coverage. When properly implemented framework will help manage cost and quality.

Reconciliation Deployment
Parallel Testing
Requirements Parallel Test Specifications

Analysis
Business Requirements User Acceptance Testing
User Acceptance Test Specifications

Technical Requirements Design System and Integration

and Detailed Design System/Integration Test Specifications Testing

Development
Coding / Debugging Unit Testing
Unit Test
Specifications

88
Risk Management Framework Domains
A comprehensive Strategic Risk Management (SRM) Framework encompasses seven domains / core building
blocks.

Enterprise strategy that defines the SRM function role, SRM program objectives and establishes
going-forward strategic roadmap
Strategy

Governance SRM oversight structure with well defined roles and responsibilities to manage risks
pertinent to the risk management lifecycle

Policies, Standards and Procedures defining risk management methodology and

Policies, Standards activities, risk tolerance levels and integration points between risk management
and Procedures functions to ensure consistency and quality in program activities

Due diligence and ongoing oversight that a company must exercise

Risk Management Processes* throughout the risk management lifecycle

Tools and technology that drive commonalities in risk management

Tools and Technology process, and support data accuracy, availability and timeliness.

Metrics and reports that provide a comprehensive view of

Metrics and Reporting enterprise risk to the relevant stakeholders across the
enterprise.

Coordinated communication channels and programs to

educate stakeholders of responsibilities at all stages of
Communication, Training and Awareness
the risk management lifecycle.

89
Continuous Improvement – Strategic Roadmap
Successful evolution of Strategic Risk Management (SRM) is achieved by: 1) continuously analyzing the current
state Program components 2) identifying enhancement opportunities 3) updating the strategic roadmap.

1. SRM Program Current State

Analysis
Analyze the current SRM Program, utilizing
industry drivers and the changing risk
1. Current landscape to identify potential enhancements
State Analysis to the current state
2. Analysis
Drivers of Results 2. Analysis of Results
Drivers such as a emerging industry
trends, new laws and regulations, Review potential enhancement
changing threat landscape and risk opportunities with SRM governing bodies and
events are used as input into a additional key stakeholders
current state analysis.

3. Update Strategic Roadmap

3. Update Strategic
Roadmap Prioritize enhancement opportunities based
on benefit.

SRM Program Components

SRM Governance Model Strategic SRM Reporting

Risk Appetite Classification

Risk Management Processes Tools and Technology

Training and Awareness

90
Control Domain Maturity

Control Domain Control Domain Maturity Summary Observations

 The organization has adopted a risk-based approach for operational risk management. However, there
Strategy CS R are additional requirements with respect to the operational classification and identification of critical
processes that should be addressed.

 The organization has established governance, but there are certain items that should be addressed with
Governance CS R respect to the current distributed nature of the governance model and involvement of the Board of
Directors in operational risk management.

Policies,
 The organization Policies, Standards and Procedures appear to satisfy regulatory expectations, except
Standards and R CS
for a procedure for managing exceptions which should be defined.
Procedures

Risk  The organization has established risk management processes and governance activities around
regulatory requirements, but there are certain deficiencies that should be addressed related to the
Management CS R
management of Strategic, Reputation, Transaction / Operational, Continuity of Business / Contingency
Processes Planning risk.

Tools and CS  Consequently, current tools and technologies appear satisfactory from the regulatory standpoint.
Technology

 The organization quarterly issues reports focused on critical processes; but enhancements in reporting
Metrics and CS R with respect to the broader coverage of other critical processes, and the presentation of aggregate risk
Reporting views are recommended.

Communication,  The organization has dedicated, trained staff in several groups / functions that manage critical
Training and CS R processes; however Risk Relationship Managers could benefit from having a more formal risk
Awareness management training, communication and awareness program in place.

Non-existent: Not understood, not formalized, need is not recognized;

Maturity Levels Ad hoc: Occasional, not consistent, not planned, disorganized;
Current Regulatory documented Repeatable: Intuitive, not documented, occurs only when necessary;
CS R
state standards and guidance Non-existent Ad Hoc Repeatable Defined Measured Optimized Defined: Documented, predictable, evaluated occasionally, understood;
Measured: Well managed, formal, often automated, evaluated frequently;
Optimized: Continuous and effective, integrated, proactive, automated.

91
Risk Analysis Methodology
Risk Analysis Methodology maps risks to various assets. The process determines a threat-vulnerability pair and
the existing controls that mitigate the threat. The process then identifies the likelihood of the vulnerability being
exploited, which is used do determine the impact. Then the risk is identified.

Regulation / Business Option

Phase 1: Risk Analysis Asset

Risk
Phase 2: Remediation Option
Analysis

Remediation Options

Phase 3: Cost Benefit Analysis

Cost Benefit

Phase 4: Implementation Decision

92
Risk Analysis Methodology
Risk Analysis Methodology maps risks to various assets. The process determines a threat-vulnerability pair and
the existing controls that mitigate the threat. The process then identifies the likelihood of the vulnerability being
exploited, which is used do determine the impact. Then the risk is identified.

Asset Assessment

Threat Analysis

Vulnerability Analysis

 Qualitative Impact
 Financial Impact
 Impact Rating
 Threat Identification Existing Controls Assessment
 Classification of Threats
 Threat Likelihood
 Threat Exposure Rating
Likelihood Assessment

 Vulnerability Identification
 Vulnerability Exposure Impact Assessment
Rating

Risk Identification

93
Recovery scenarios

High

Paradise Regained Alpha Markets

 Moderate regulation  Markets overheat
 Markets stabilize  Inflation picks up
 Spending recovers  Market turbulence increases
 Credit conditions improve  Risks proliferate
 Pricing flexibility returns  Product life cycles shorten
Market Growth

Beta Markets Paradise Lost

 Markets shun risk
 Growth recovers slowly
 Government grip tightens
 Innovation retreats
 Vanilla products dominate
 Aggressive regulation
 Zero pricing flexibility
 Escalating defaults
 Quality customers migrate
 Disruption of the card model

Low High
Market Volatility

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Organization Design

Organization Design impacts both productivity and cost in a business.

High

Organization Design is impacting

Optimal Organization Design
productivity
Cost Efficiency

Organization Design based on

Organization Design is eroding margins
unsustainable Business Model

Low High
Operational Performance /
Productivity

95
Business Portfolio 3x3

High
Competitive Position

Medium
Low

Low Medium High

Product/Market Attractiveness

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Emerging Market Growth Framework – Archetypes
Four distinct ‘archetypes’ exist for a company to grow revenue in emerging markets. Increasing capability levels
are required to unlock potential across each archetype.

Assimilator
(Leverage Innovations)
Addressable Market

Creator
(Break Constraints)

Adaptor
(Enhance Competitiveness)

Participant
(Establish Presence)

Capability Sophistication & Scale

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High Level Evaluation of Opportunities
The risk-value matrix provides a visual interpretation of projects across various business units and investment
volume to represent the projects mostly likely to create valuable for an appropriate risk level.

High
Circle size
represents
approximate
cost

Do Now
Value

Plan Now

Reassess

Low High
Risk

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Enterprise Cost Management Potential Initiatives

Cost Management Tradeoffs Cost Management Example Efforts

Cost Level 1 - Incremental  Align, prioritize and rationalize project portfolios

Reduction 1 Short-term Portfolio to increase strategic alignment and reduce
Opportunity Rationalization overall spend

High  Focuses on operational efficiency and cost

performance in a specific functional area – e.g.
Sales Force, Finance or IT
Level 2 -
Transformational  Successful efforts address functional excellence
2
Functionally Focused at the BU and/or enterprise level
Medium Cost management
 A cost focus is either an integral part or added
3
on as a key objective to an already existing re-
engineering effort

Low 2  The pursuit of business performance

Level 3 - Radical improvement through rapid identification and
implementation of cost management solutions,
3 while simultaneously creating value
Division/BU &
1 Enterprise Program  Successful efforts cover many functional areas
Gain

in an holistic, integrated program

Pain Low Medium High

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Options

Exiting the business at least for Many short term marketing, product and
a while operational initiatives driven by a crisis
PMO

Retrench Scramble Innovate

Withdraw

Cutting lines, reducing risk Stepping back and redefining business

and expenses, waiting for and operating models to capitalize on
the storm to pass industry opportunities

100
World Map

101
United States Map

102
I II III IV V VI VII
Introduction Basic Slides Executive Models and Project Frameworks 7 Deck Rules
Summary Objects Management and
Templates Templates Methodologies
7 Deck Rules – Overview

Follow 7 rules to make compelling presentations.

Understand
the Canvas
I
Make it Keep it
Sing Simple
VII II

There are 7 Rules behind the Follow them all to

art and science of creating a 7 DECK4 RULES successfully convey your
great presentations. message.
Leverage VI III Tell a
a Library Story

V IV

Focus on Solve a
Composition Problem

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7 Deck Rules – Benefits

Leverage a tested mechanism to produce excellent presentations in a short time-frame.

7 deck rules provides a It will save you time by

methodical approach to helping you quickly build
building deliverables deliverables

It helps structure your It provides a template so It inspires you with proven

ideas and information in you can focus on the problem solving
solution oriented way. content & not the format. techniques.

Bottom line:
It will help you convey your
message in a compelling
way.

105
Rule I: Understand the Canvas

A typical slide has 6 distinct components.

The Headline is a short title The Lead is a brief, sharp

1 2
describing the slide statement summarizing the slide

The Body is the core part of the

3
slide (also known as the Storybox)

The Company Logo is displayed Page number in the middle of the The Department or Project Name
4 5 6
for branding purposes slide is displayed for branding purposes

106
Rule II: Keep it Simple

Simplicity is necessary to properly convey an idea.

The goal of simplicity is to emphasize the

insightful and remove the distractful
Simple Powerful

Natural tension between simple and powerful,

finding the right balance is the goal

Reducing complexity is in of itself complex and

takes a focused approach
Reducing
Complexity
Continuously Organize, Collect and Reduce
content as the Deck as the deck is being built
Eliminate

107
Rule III: Tell a Story – Storyboarding Depicted

Storyboarding is a simple method to keep the Deck focused and coherent.

1 2 3 4 5

Storyboarding is the A great storyline has an Its easier for the audience In combination, the Slide The storyboard process
method for the creation of engaging beginning, to understand complex Title and the Slide Lead will converts brilliant, abstract
a storyline of a deck insightful content & a clear concepts when explained summarize the entire deck ideas into a coherent
conclusion in a storyline storyline

How these 5 point would be

storyboarded

108
Rule IV: Solve a Problem
A Deck should solve a problem. A methodical approach should
be taken when solving a problem.

Principle 1: Process Principle 2: Organization

A methodical process should be used to find the right viable solution, Divide the problem into smaller discreet parts such that there is no
not just any solution. overlap, no gaps.

Principle 3: Frameworks Principle 4: Focus

Using formal frameworks to structure your analysis will help support the Problems can be complex – typical with little effort a major part of the
conclusions reached. problem can be solved. So focus on what is important.

109
Rule V: Focus on Composition

Follow these 6 principles to ensure writing is informative and direct.

Principle 1: Rules Principle 2: Language Principle 3: Substance

Use correct grammar, punctuation & spelling Use clear, concise and precise language Focus writing on the subject matter

Follow conventional rules Utilize ethical and inoffensive Language Align writing with the deliverable objective

Principle 4: Structure Principle 5: Leveling & Labeling Principle 6: Voice & Tone

Group thoughts into clusters Distill your message (levels of details) Use active voice (vs. passive voice)

Sequence thoughts logically Using headings to label content Express ideas in positive terms

110
Rule VI: Leverage a Library

Why re-invent the wheel when building deliverables? Have a library of slides handy and leverage.

Set 1: One Pager Set 2: Objects and Models

Work bench with basic objects that are frequently used All objects and models that can be used for visuals

Set 3: Executive Summary Set 4: Frameworks and Methodologies

A standard one page executive summary template Established frameworks and methodologies

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Rule VII: Make it Sing

Function (information) and form (design) go hand in hand.

Information Human’s are

Information Design
is power visual creatures

Design your information so it can be

conveyed in an understandable power

Direct the Eyes Choose your Colors Accentuate with Visuals

The slide flow should be understood in a Colors have deep meaning. Use creative diagrams to illustrate – as
flash. To achieve this, structure the slide Choose your colors as would choose your simply as possible – concepts, models
in a way so as to guide the viewer eyes. words – carefully. and processes

112
Keep reading at:
decklaration.com/bullet
s-do-kill
Author’s Message
This deck will save you time, ensure a consistent look-feel and help
you produce a more polished and powerful product.

The purpose of this slide deck is to help you create insightful presentations.

This timesaver has a large number of preformatted slides (40+) that can be
easily leveraged. It also has frameworks and methodologies (35+) that you
can utilize when faced with a challenging problem.

Why re-invent the wheel? Just come here. Leverage.

Or, can’t think of the right way to depict a thought? Brain-cramp? Peruse the
content. This will get the creative juices going.

Happy decking!

114