Protect your Business February 2018 Show of hands – Who here wants to protect their business? We are here to talk to you about the importance on managing and identifying your risks and what it means to your business.

Ellen Bessner, Babin Bessner Spry LLP Preparing for an interview with compliance, a regulator or client’s counsel is key because your licence, reputation and livelihood are all at stake. Ellen Bessner, Babin Bessner Spry LLP Ellen Bessner is an experienced commercial lawyer Author of “Advisor at Risk” – a roadmap to protecting your business. It’s not something you normally think about but the health and value of your business depends on it. 2

Of course no risk – likely means no rewards But managed risk – likely means more bigger rewards I am talking about the risks that you control – for example, documentation

Agenda 1 2 3 Value your business Risk management and your business Best practices Normally people think value equals “How much do I make from my business, but there’s more! Manage your risk Some best practices to protect the value of your business 3 4

Value Your Business CREDIBLE PROFESSIONAL TRUSTED SUCCESSFUL Manage your business in a way that is… CREDIBLE PROFESSIONAL TRUSTED The more you are these 3 things – the more value you have SUCCESSFUL

Value your business Manage Risk Know your business Know your products Few or no controls Know your business Know your products Loss of clients’ trust Know your clients Reputational damage Know your compliance obligations E.& O. claims Best practices and training Legal fees and damages Treating Customers Fairly Regulatory investigation Fines There are things that value your business and there are things that put that value at risk. Warnings, supervision, termination Manage Risk 6

Know your compliance obligations Know your business Know your products Know your clients Know your compliance obligations Knowing your business, knowing your products, and know your clients – is value Knowing your compliance obligations, best practices and training while treating customers fairly – is are less damaging than …..(next slide) Manage Risk Best practices and training Treating Customers Fairly 7

Regulatory investigation Warnings, supervision, termination Loss of clients’ trust Reputational damage Few or no controls E.& O. claims Legal fees and damages Regulatory investigation Having few or no controls which de-values your business. Fines Warnings, supervision, termination 8

Risk management and your plans Risk management requires you to evaluate your business risks and helps reduce risk by adding controls. Regulation and industry best practices help you control your risk. 1 Close Gap/Risk 4 LIST YOUR RISKS 2 VALUE YOUR BUSINESS Risk mitigation : List your risks – examples on the next slide Understand Compliance Requirements – This is the reason you are here today Identifying your controls – what controls do you have in place that helps reduce risk ? Example: controls as easy as following regulations and best practices Document equals close gap – not having consistent files and not documenting your processes – drives down the value of your business. UNDERSTAND COMPLIANCE REQUIREMENTS DOCUMENT 3 IDENTIFY YOUR CONTROLS

Examples of Improving Your Business BUSINESS ACTIVITY SUSTAINABLE BUSINESS RISK CONTROL DEVELOPING A LEAD CASL non-compliant communication Consent Unsubscribe Document Email Text Efficient SALES PROCESS Complaints Chargebacks Reputation Disclosure KYC FNA Reason why Document Suitable Sale Here are some examples to help improve your business CASL – understanding social media Sales Process – document, document, document, as part of meeting your client there are templates, rules and reasons why it is important to document. KYC – A control that helps you identify your client FNA – Back up to the math (How much) Reason why document - The purpose (i.e. insurance to protect mortgage

Best practices Build your risk strategy Create habits to keep your business fit Develop your controls Understand Compliance Requirements Why all this? Carriers care about your business Regulators care about your business Bridgeforce cares about your business What about you? Do you care? Look for helpful tools and guidance documents Educate yourself and stay connected with today’s compliance and best practices

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