The presentation unifies business value creation and preservation objectives within one framework suitable for use by, and accessible to, all departments of all organizations, in all industry sectors. GRC still focuses too much on preserving trust and social capital and not enough on developing them. The entire premise of OCEG’s GRC initiative is too narrowly focused and therefore incomplete. To use a sports analogy, you can’t win a football game with defense alone. Offensive business practices develop trust and build social capital, encourage risk taking, facilitate collaboration, and stimulate innovation. These elements remain inadequately addressed by the GRC approach to achieving Principled Performance objectives.

1. Governance, Risk, Compliance & Trust Presentation to KPMG May 20, 2009 By Alex Todd [email_address]

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

6. Objectives Outcome Types Desired Outcome Boundary Obstacle Uncertainty Meet Business Objectives Revenue Legality Brand Customers Enhance Leadership and Organizational Culture Trust Integrity Insincerity Employees Increase Stakeholder Confidence Share value Insider trading Trust Investors Prepare and Protect the Organization Avoid adversity Risk tolerance Adverse event Directors Prevent, Detect and Deduce Adversity Mitigate damage Ethics Unethical behaviour Directors Motivate and Inspire Desired Conduct Desired conduct Code of conduct Noncompliance Management Improve Responsiveness and Efficiency Speed & Quality Cost Agility Management Optimize Economic and Social Value Value Resources Fair allocation Society

7. Business Case Regulators Customers Investors Society

8. What does the world look like?

9. Systemic Risk

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

12. Uncertainty Risk Management Innovation

13. Risks & Uncertainties

16. 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

17. 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 Trust Protect Trust Interpretive Sources of Trust Subjective assertions of the source of the information or third parties. Empowerment Relying party’s ability to choose. Certainty Acceptability

18. 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.

21. TrustEnablement.com

22. Offerings

23. Public Policy & Economic Development

24. Corporate Governance & Investment

25. Policy & Strategy

26. Risk Management

27. Information Technology & Security

28. Online Transactions & Web 2.0

29. Organizational Development & Change Management

30. Leadership, Collaboration & Innovation

31. Marketing & Sales

32. Supply Chain Management

33. Other Initiatives

35. Opportunity