1. PRMIA Toronto Chapter Event The ALPHA and BETA of Corporate Governance and Risk Oversight Tuesday, March 8, 2011 Alex Todd TE Research A division of Trust Enablement Inc.

2. Understanding Systemic Risk

3. Risk Management & Systemic Risk

4. Risk Management in a Complex World Risk Management Innovation

5. Trust Enablement for Risk Management 2.0

6. Strategic Corporate Governance

7. Corporate Governance ALPHA

8. Aspirational Corporate Governance

9. Extra Slides

10. What does the world look like?

11. Business Case Regulators Customers Investors Society

12. Risks & Uncertainties

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

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

15. 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). 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. Develop TrustProtect Trust Interpretive Sources of Trust Subjective assertions of the source of the information or third parties. Empowerment Relying party’s ability to choose. CertaintyAcceptability

16. 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.

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

18. Systemic Risk of Nations

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

20. 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 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 Culture establish an organizational climate and mind-sets of individuals that promote ethical behavior, trust, integrity and accountability Compliance proactively encourage and require compliance with established policies and detect noncompliance and respond accordingly

21. Business Case Governance Risk Management ERM Compliance Programs Ethics Programs Compliance & Ethics Programs Culture Social Responsibility IT Governance

22. Objectives “Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed” - OCEG

23. Objectives Outcome Types Desired Outcome BoundaryObstacleUncertainty Meet Business Objectives RevenueLegalityBrandCustomers Enhance Leadership and Organizational Culture TrustIntegrityInsincerityEmployees Increase Stakeholder Confidence Share valueInsider tradingTrustInvestors Prepare and Protect the Organization Avoid adversityRisk toleranceAdverse eventDirectors Prevent, Detect and Deduce Adversity Mitigate damageEthics Unethical behaviour Directors Motivate and Inspire Desired Conduct Desired conductCode of conductNoncomplianceManagement Improve Responsiveness and Efficiency Speed & QualityCostAgilityManagement Optimize Economic and Social Value ValueResourcesFair allocationSociety

24. Systemic Risk

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

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

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

29. TrustEnablement.com

30. Offerings

31. Public Policy & Economic Development

32. Corporate Governance & Investment

33. Policy & Strategy

34. Risk Management

35. Information Technology & Security

36. Online Transactions & Web 2.0

37. Organizational Development & Change Management

38. Leadership, Collaboration & Innovation

39. Marketing & Sales

40. Supply Chain Management

41. Other Initiatives

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

43. Opportunity

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