1. Enterprise Wide Risk Management as Applied to the U.S. Operations of Fortis

2. Organizational Background –Established the role of Chief Risk Officer for the entire organization including both the banking and insurance businesses. Heads Central Risk Management. –Elevated the position to the Executive Committee level of Fortis. –Responsible for Credit, Market, Operational, Liquidity and Reputational Risks. Also Chairs the Policy Committees covering Credit and Market Risk. Helps forecast Liquidity Management. Helps to establish firm-wide risk appetite. –Responsible for tracking and reporting all Credit and Market Risk positions and reporting to the Executive Committee. –Responsible for the oversight of the implementation of Basel II for the entire organization.

3. Next Steps –Established a Chief Risk Officer within each Business Line reporting jointly to the Head of the Business Line and to the Fortis Chief Risk Officer. –Established Regional Chief Risk Officers who report to the Business Line CRO and the Local CEO/Country Manager who in turn reports to the Business Line Head and Chief Operating Officer. –Our key measurement criteria is risk weighted capital and its return on both a Basel I and Basel II basis. –Key risks to follow: Credit, Market, Operational and Liquidity. –Key role and responsibilities for Risk Managers and their teams: 1.Approvals – Limits, Products, Deals, etc. 2.Monitor and measurement of all local risk profiles and reporting to Head Office. 3.Following the growth of business to make sure we have the appropriate resources to follow all risks. 4.Anticipate downturns and problems in all risk portfolios and recommend appropriate action.