Risk Systems Achieving a Singular View of Trading Operations Worldwide Pascal Emile Global Head of Market Risk Technology 13 July 2004

Risk Systems 1 Risk Systems Dresdner Kleinwort Wasserstein DrKW is the investment bank of Dresdner Bank AG and a member of the Allianz Group Headquartered in London and Frankfurt, with offices in leading international financial centres such as New York and Tokyo, it employs approximately 6,000 people around the world DrKW provides a wide range of investment bank products and services to European and international clients through its Corporate Finance & Origination and Capital Markets business lines

Risk Systems 2 Risk Systems Our Approach to Risk Systems DrKW uses a combination of packaged software and bespoke development to provide systems solutions to business problems that need to combine financial information across products, business lines and locations into a consistent and current view of the enterprise

Risk Systems 3 Risk Systems Our Approach to Risk Systems DrKW uses a high performance calculation and information delivery platform in a real-time, event-driven and component-based J2EE architecture to provide a financial information backbone across its trading floors This financial information backbone provides the data to support all market and credit risk reporting requirements across the trading floors

Risk Systems 4 Risk Systems Our Partner To provide this backbone DrKW uses bespoke software from Yolus, a software company founded by banking and IT professionals and that was spun-off from DrKW. Yolus designs and build robust, extendible and highly scalable real-time management information and decision support systems for the financial services industry

Risk Systems 5 Risk Systems Risk Applications Our risk applications connect directly with the IT systems already in place: we engineer solutions that deliver value to business lines by extending the capabilities of their existing IT assets rather than replacing outright

Risk Systems 6 Risk Systems Delivering the Benefits This approach helps the bank to: Manage trading risks Increase capital efficiency Lower operating costs Lessen operational risks Deliver higher levels of service to internal and external clients

Risk Systems 7 Risk Systems Risk Systems High Level Objectives To collate financial information published by the bank’s front-office position keeping and risk systems To calculate consistent aggregate P&L and risk figures across products, business lines and locations in real-time To give users the capability to drill-through and analyse position level information To be deployed in one location and used globally

Risk Systems 8 Risk Systems Risk Systems in Dresdner Kleinwort Wasserstein Delivery to the front-office a real-time view of the bank’s trading activities around the globe Delivery to the back-office one consistent source of position, P&L and risk information across products, business lines and locations for the whole back-office

Risk Systems 9 Risk Systems Core Components Online Data Server Intelligent Caching Real-time Vector Aggregation Managed Business Components Data Cross-Reference Service Data Hierarchy Service Data Explorer Overall System Manager Security & Access Control Manager

Risk Systems 10 Risk Systems Real-Time Trading Risk Management

Risk Systems 11 Risk Systems Deployment Roadmap

Risk Systems 12 Risk Systems A Controlled Environment The applications are deployed with tools to benchmark the system for increasing data volumes, throughput rates and client connections: to know how the application will perform as demands on the system increase.

Risk Systems 13 Risk Systems One Data Source for All Risks This solution enables the organization to share its data and rapidly communicate results of calculations to businesses around the globe The Market Risk data backbone provides a single platform on which additional risk and control systems can be connected for: P&L Explanation Scenario Analysis Market Risk VAR Liquidity Risk Management & Control Trading Counterparty and Issuer Risk Control Back-office reconciliations

Risk Systems 14 Risk Systems Extended Risk Management Solution

Risk Systems 15 Risk Systems A Federated Real-time Collaborative Enterprise