1. Slide 1 Risk Management and Internal Control in the EU Alternative approaches Robert Hodgkinson 25 October 2005

2. Slide 2 Evolutionary path Manage risk Disclose process Disclose management of risks Disclose effectiveness conclusion Risk management and internal control Financial reporting Compliance Operational and strategic Increasing difficulty Requirements Best practice

3. Slide 3 Matrix for analysing requirements Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

4. Slide 4 Issues for consideration Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance 1 1 1 2 3 4 1 1 1 2 3 4 1 1 1 2 3 4

5. Slide 5 EU Proposed Directives Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

6. Slide 6 Sarbanes-Oxley Section 404 Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

7. Slide 7 Dutch requirements Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

8. Slide 8 French requirements Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

9. Slide 9 Swedish requirements Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

10. Slide 10 UK requirements Types of activity Disclose Manage risks Respond Conclude Identify and evaluate Management of specific risks Effectiveness conclusion Overall process Types of risk Financial reporting Operational and strategic Compliance

11. Slide 11 Risk Management and Internal Control in the EU Alternative approaches Robert Hodgkinson 25 October 2005