1. PRECISE. PROVEN. PERFORMANCE. © 2011 Moore Stephens LLP Association of Financial Mutuals: Corporate Secretaries Forum The Board and strategic risk April 2011 Governance Risk and Assurance

2. It’s real and its personal

3. Changing world Increased regulation New laws e.g. Bribery Act Impact of economic climate Increased stakeholders expectations

4. Challenges for the Board Individual Directors Accountability versus responsibility Leadership – clear direction Compliance culture Appetite for risk

5. Board responsibilities Communicate and cascade Challenge and support Stakeholder assurance Proportionate control

6. Good governance Greater focus on governance across sectors Links to performance Stand out from competition Sources of assurance

7. Practical action Risk management framework Risk identification Reporting, monitoring and management information Practical tool

8. Rhiza – Key features Drives the risk management methodology in line with best practice Provides clear ownership of risks and controls at board and management level Simple, flexible and cost effective Provides evidence of a dynamic process and effective monitoring

9. Rhiza – main menu

10. Rhiza – risk register

11. Rhiza – controls and tests

12. Rhiza – issue management

13. Rhiza – reporting

14. Thank you Any questions?

15. Sarah Hillary Partner, Governance Risk and Assurance E mail: sarah.hillary@moorestephens.com Telephone: 0207 334 9191 Robert Noye-Allen Partner, Governance Risk and Assurance E mail: robert.noye-allen@moorestephens.com Telephone: 0207 334 9191 Moore Stephens 150 Aldersgate Street London EC1A 4AB