1. CREATING CERTAINTY IN TIMES OF INCREASING UNCERTAINTY

2. Kennington Our objectives To assure you risk is good. To convince you of the value of compliance risk assessment. To tell you how we do it.

3. Kennington Risk The opportunity to secure gains or suffer losses.

4. Kennington Major risk drivers Economic cycles Human frailties Technology changes Community expectations Market sensitivities

5. Kennington Some areas of risk Regulatory Financial Political Ethical Contractual & project

6. Kennington Risk management Continuous control over the incidence and impact of risk.

7. Kennington Compliance The culture and discipline necessary to demonstrate risk is being competently managed.

8. Kennington Compliance risk The extent to which compliance is being achieved.

9. Kennington Why bother? Due diligence Perceived competence Demonstrable competence Best practice governance Insurance premium reductions Cost containment generally

10. Kennington Our competencies International financial markets Technology & systems Accounting & business structures Liability management & insurance

11. Kennington What we do Understand your business Assess compliance risk Recommend strategies Develop action plans Oversee implementation

12. Kennington How we do it Investigate objectively Reference Aust Standards AS 4360 - Risk management AS 3806 - Compliance programs Collect evidence Substantiate practices Recommend improvements Supervise implementations

13. Kennington What we don’t do Assume we know your business. Ignore your expertise. Give you formula solutions. Abandon you before satisfactory remedies are in place.

14. Kennington Where you benefit Improved compliance Reduced risk & costs Greater certainty going forward Board & employee assurance Positive market perception Investor confidence Shareholder value

15. Kennington Engaging us Confidential briefing Credentials & fee proposal Four-stage process Business familiarisation Compliance risk assessment Remedial strategy development Implementation supervision

16. Kennington Copyright © The Kennington Alliance Pty Ltd 2003 The foregoing presentation is copyright. Except as permitted by applicable copyright legislation, no part of it may be reproduced or distributed in any form or by any means without the express written permission of the copyright owner, The Kennington Alliance Pty Ltd (ABN 82 095 273 144). Email: info@thekenningtonalliance.com