Financial Reporting Robotics

1. FINANCIAL REPORTING ROBOTICS MARCH 2017 MANUAL TO AUTOMATED ACROSS PROCESSES

2. TABLE OF CONTENT 2 FINANCIAL REPORTING ROBOTICS SUMMARY INTRODUCTION TO ACCENTURE’S REGULATORY REPORTING INTRODUCTION TO ROBOTIC PROCESS AUTOMATION AND METHODOLOGY HIGH LEVEL ROBOTICS IMPLEMENTATION Copyright © 2017 Accenture. All rights reserved. HOW TO GET STARTED04-06 07-08 03 09-11 12-18 APPENDIX 19-20

3. HIGH PERFORMANCE FINANCIAL REPORTING FRAMEWORK Consolidating frameworks, processes, and technology create efficiencies across reporting functions. External / Internal Reporting • Same data can be used to populate reports across the regulatory landscape and for internal purposes reducing redundant activities MIS / Shareholders • With more accurate reporting results, financial results can be produced faster Functions • Cross function transparency can be created allowing for the dynamic integration of new systems BrokerDealer AssetManagement Insurance CapitalMarkets Bank Reporting Regulatory (External) OCC FDIC NCUA FRB SEC CFTC CFPB FHFA FINRA NAIC ESFS Basel Functions Risk Treasury Finance Human Resources Control Line of Business External Data (Market) Legal Organization • Overarching controls and governance to help manage risk, with well communicated roles and responsibilities Technology • Seamless user experience to investigate, manage risk, and create new information and data BENEFITS OF CONSOLIDATION Internal Management Information System (MIS) and Shareholders Informational Sr. Management Operations Board Actuals Forecasting Support Organization Technology Workflow ModelingPolicy Training RCSA Procedures Resource Location Audit Business Rules Performance Metrics Calculators Aggregation Web Services Reporting Engine Technical Rules Batch Management Workflows and Requirements Copyright © 2017 Accenture. All rights reserved. 3 Potential Robotic Process Automation Candidate Process Sourcing and Validation Reconciliation Adjustments Transformation Distribution Data Management Investigation and Analysis Security / Audit / Controls Workflow and Requirements • Straight through processing of information across all systems to help meet reporting needs

4. FINANCIAL REPORTING PROCESS CAPABILITY MODEL Level 1 Level 2 Level 3 Level 3 – Sub Category Manual activities impact key areas of the reporting process slowing efficiency, increasing risk, and making it difficult to audit reporting. CORE WORKFLOWS AND REQUIREMENTS SUPPORTING WORKFLOW AND REQUIREMENTS Security / Audit / Control Investigation and Analytics Sourcing and Validation AdjustmentsData Management TransformationsReconciliation Report Preparation CannedEntitlementsData Sourcing Controls TransactionMetadata Management Formulas Drill Down Data Masking Capital ManagementTechnical Aggregated Capital Thresholds and Materiality Quality Assurance Report Changes and Maintenance Internal Quality ControlExternal Ad HocBusiness Derivation Rules Regulatory Thresholds SOX PerformanceData Accuracy Aggregation Rules Escalation Criteria Operations MarketRule Confirmation Escalation Tracking Retention and Archiving Operational DashboardManual UploadLineage and Traceability Error Resolution RiskModel Approval RCSAControls Model Definition and Enhancement Break Thresholds Versioning DerivationsResolution Restatement Data Quality Pro Forma ControlsAdjustment ApprovalData Approval Cross Report Metrics Model Governance Security ReportsSourcing Adjustment InventoryData Governance Calculations Mapping to General Ledger Data Mapping Validation Rules Research Variance Commentary AuditDatasets Report Submission AnalyticsException Tracking Aggregation Attestation Policy and ProceduresCapital Results Narrative Copyright © 2017 Accenture. All rights reserved. 4 Potential Robotic Process Automation Candidate

5. ACCENTURE REGULATORY REPORTING OFFERINGS Accenture has developed a set of eight key regulatory offerings to tackle current challenges in the regulatory reporting space. Copyright © 2017 Accenture. All rights reserved. 5 DESCRIPTIONVALUEPROPOSITION Regulatory Reporting Dashboard Standard dashboard components measuring the effectiveness of data processing and measurement of data improvement over time. User Defined Tool Assessment Approach Develop an approach for the assessment of manual tools for determining a tactical and strategic elimination strategy. Integrated Reporting Tool Set Implementation Framework outlining the standard process, capabilities, and technology components required to streamline reporting and centralize finance data for straight through processing. Data Quality Management Develop standard data quality management operating model (framework) for the identification, investigation, and resolution of data quality issues. Capability Design & Data Sourcing Development and design reporting processes and capabilities. Document key steps for data processing, populating reports and collecting key reporting data attributes. Target Operating Model and Governance Create target operating model and governance structure for regulatory reporting capability to allow for clear roles and responsibilities, ownership, process documentation, and governance. Regulatory Reporting Vendor Implementation Support the client’s implementation of regulatory reporting tools through vendor selection, business and functional requirement gathering, tool configuration, and testing/go live support. • Increase automation • Improve report accuracy • Improve data quality • Reduce time to change • Reduce manual data • Increase automation • Improve report accuracy • Improve staff usage • Reduce manual data • Increase automation • Improve report accuracy • Improve staff usage • Reduce manual data • Improve data quality • Improve report accuracy • Improve data quality • Reduce regulatory actions Improve governance • Increase data oversight • Reduce risk • Improve time to report • Increase ownership • Improve governance • Reduce redundant processes and controls • Increase automation and functionality • Improve report accuracy • Reduce manual controls Financial Reporting Robotics Identification of manual processes in the key reporting capabilities. Assessment and implementation of Robots into the regulatory reporting operating model • Increase automation and functionality • Increase productivity and speed to report • Increase security and controls

6. RPA emulates human execution of repetitive processes via existing user interfaces Robots are a virtual workforce controlled by the business operations team RPA sits alongside existing infrastructure, governed and controlled by IT Automated solution can work 24/7 Cuts data entry costs Significantly lower than the cost of offshore staff Robots work with existing IT architecture Double-digit reduction in error rates Robots can be trained by business users WHAT IS ROBOTIC PROCESS AUTOMATION (RPA)? Robotic process automation (RPA) offers a fast, cost-efficient and easy-to-implement solution to help organizations address repetitive and time consuming processes that are only partially supported by an integrated system and that hinder business operations flexibility. Copyright © 2017 Accenture. All rights reserved. 6

7. Emulates human execution of repetitive processes with existing applications Robots are a virtual workforce controlled by the business operations teams Robots can be trained by business users via configuration Sits alongside existing infrastructure, governed and controlled by IT Robots work with existing IT architecture – no complex system integration RPA METHODOLOGY ALIGNING ROBOTICS TO PROCESSES Most RPA projects start with an assessment of processes to be considered for automation. This is followed by an analysis of business processes and training of the robots to execute the process. Within 6 – 8 weeks, we are usually able to create a pilot process to demonstrate the benefits of RPA. When is RPA relevant? How do you execute an RPA Project? Discovery Assessment Solutioning Development Testing Rule based / No human judgement Digital trigger and structured, digital data Highly manual / Time consuming High volume At least 2 different systems Not frequent changes in process steps and rules Low exception volume High likelihood of human error What are RPA’s benefits? Payback in 3 months Processing costs reduced 80% No downtimes24/7 Quick Implementation Re-usable process elements Average handling times reduced 40% Human errors eliminated Refocus of staff on customer service Copyright © 2017 Accenture All rights reserved. 7

8. THE REGULATORY REPORTING PROCESS HIGH LEVEL ROBOTICS IMPLEMENTATION ToBeProcess Sourcing and Validation Process: • Conduct Attendance Tracking • Run Business Validations • Run Technical Validations • Manage Exceptions • Investigation and Analytics • Conduct Adjustments Reconciliation Comparing validated information against a general ledger to obtain correct amounts Sourcing / Validation Receive information from sources for accuracy and completeness Reporting Process: • Investigation and Analytics • Variance Analysis • Variance Commentary • Cross Report Reconciliation • Information Approval • Attestation The reporting team can be assigned on reviewing analysis vs conducting exceptions and routine queries for reporting Reconciliation Process: • Aggregate Information to the Appropriate Level • Identify Breaks • Manage Breaks • Investigation and Analytics • Conduct Adjustments Transformation Develop outputs to aggregate and populate information in reports (Calculations, Derivations) Transformation Process: • Calculations • Derivations • Aggregations • Model Governance • Investigation and Analytics AsIsProcess Reporting Review of populated information for variance commentary and report attestation 1. Perform Data Sourcing Service Level Agreement (SLAs) 2. Perform Technical & Business Attribute Validations 3. Review Sourcing & Validation Results 4. Submit Adjustments 5. Review & Approve 4-7 Days 1. Produce Dashboard 2. Review & Investigate Breaks 3. Provide Commentary & Drivers 4. Cross Report & Validations 5. Document Results 6. Review Results 7. Approve Results1. Define Rules 2. Execute Reconciliation 3. Review & Investigate Breaks 4. Provide Commentary / Drivers 5. Approve Results 1. Identify Attributes 2. Perform Transformation 3. Perform Technical Validation 4. Perform Business Validation 5. Review Validation 6. Submit Adjustments / Request Data 7. Submit Adjustments / Correct Exceptions 3-5 Days 5 Days 10 – 20 Days 10 – 15 Days 10 – 15 Days 15 Days 5-7 Days System User RPA Robot Artificial Intelligence (AI) Copyright © 2017 Accenture All rights reserved. 8TO-BE AS-IS

9. Copyright © 2017 Accenture. All rights reserved. 9 • The length of time to recover the initial investments in assessment, licenses and development is between ~3 and 6 months • The agile implementation of robots allows clients to recover initial investment in main areas of regulatory reporting • Between 60% and 80% of regulatory reporting processes performed by users can be automated through RPA robots and AI • There are opportunities of automation in areas such as sourcing, adjustments, validations, transformations and reporting • The life cycle of a report (source, transform, aggregate and distribute) can be reduced in 50% to 70% of cases • Sourcing, validations, reconciliation, transformation and reporting capabilities can be significantly improved in terms of days • Around 40% to 60% of resources aligned to the regulatory reporting processes are impacted by robotics • Resources taking exception management, adjustments and drilldown activities are examples of candidates to be impacted by RPA and AI HIGHLIGHTS FROM AUTOMATION IN REGULATORY REPORTING USE CASES Our experience indicates that automation in Regulatory Reporting bring great improvements across processes in terms of speed, efficiency and accuracy High Level of Automation Greater Speed across Processes Resources Impacted by Automation Quick Payback after Initial Investment

10. Improves efficiency, speed and savings ARTIFICIAL INTELLIGENCE ACTIVITIES IN REGULATORY REPORTING A B C D E F G H+ I J+ K + Data Model Regulatory Reporting Capabilities Artificial Intelligence Activities • Analyzes and manages exceptions • Drills down issues and pain-points • Learns new recurring errors • Adjusts data based on breaks • Investigates and comments variances • Produces reports for approval • Analyzes results and report changes • Provides transparency and logs • Measures controls Security, Controls & Audit Sourcing and Validation Reconciliation Data Management Report Preparation Adjustments Transformations Investigation and Analytics Aggregation Calculation Derivation ReferenceTransactional Sourcing and Validation Security, Controls & Audit • Investigates reconciliation breaks • Interacts with lines of business

12. TYPICAL APPROACH FOR RPA PROOF OF CONCEPT Copyright © 2017 Accenture. All rights reserved. 12 Key Activities • Engage process owners to confirm scope of PoC (assuming prior engagement to this point) • Put in place system access, credentials and desktops • Prepare to host necessary applications in a test environment • Confirm that the RPA software can be loaded onto the desktop • Schedule workshop for current state process documentation as necessary • Review candidate processes and confirm RPA suitability • Meet with stakeholders to explain RPA and what will be done in the PoC • Confirm the objectives of the PoC and “success” criteria • Document current state of the process through a workshop with SMSs (subject matter specialists) • Develop the solution design and objects in the RPA technology • Build PoCs • Test proof of concepts with test data • Record a “before and after” to communicate the concept to a larger audience • Demo proof of concept to stakeholders • Document key learnings, point of view on key questions and next step • Document requirements to move RPA solutions into production, including involvement from technology Deliverables • PoC technology requirements are in place • Current state workshops are scheduled for Week 1 • Selected processes • Confirmed objectives and success criteria • Process definition documents • Solution design documents • Working proof of concepts • Demo presentation to stakeholders • Detailed walk through of the RPA solution and how it works and interacts with other applications • Documented key learnings and requirements for production Prepare for Proof of Concept (PoC) Engage Stakeholders and Select Processes Build the Proof of Concept Demo and Capture Lessons Learned Week 0 Week 1 Weeks 2-8 Week 8

13. FOLLOWED BY ROBOTICS FACTORY Copyright © 2017 Accenture. All rights reserved. 13 Robotics Governance Tech Office Discovery Implementation Robot Support Model • Robot management & control • Incident resolution • Adaptations, as required • Continuous improvement • Business continuity • Assessment of suitability and saving potential • Prioritization • Phasing Plan Roles: Business Analyst, Process Leads & SMS, Developer Roles: Business Analyst, Process SMS, Robotics Developer, Tech.Arch. Roles: Robotics Operations IT & Business Specialists • Demand and capacity management • Performance management and Key Performance Indicators • Robotics technical architecture • Automation technical design • Support production capability Roles: Robotics Technology Architect Blueprism® software Specialist • Vendor management and licenses • Change management Pipeline Management • Validate Business Case • Prioritization of processes to be automated • Creation of a roadmap Roles: Business Analyst, Process Leads & SMS, Developer • Process mapping • RPA development • Testing / User Acceptance Testing • Deployment Business Processes for Automation Processes unsuitable for automation A B C D … leading to a cost effective transformation at scale and pace Driving realization of digitization and robotics benefits at scale Leverage the right methods and tools that best fit for each case Increase efficiency and reduce cost-to-deliver and robotics projects Identify dependencies and avoid regrettable spend Establish sustainable change and re-using best practice Reduce average handling times by about 40%, with a 24/7 resilient operation (based on our experience) Reduce run and license costs through rebalancing and higher usability of the robots The robotics factory develops and manages a digital workforce … Robotics factory – General solution information A cost effective and scalable robotics implementation relies on a factory with a structured approach and measurable benefits

14. REGULATORY REPORTING ASSETS AND ACCELERATORS Robotics and Artificial Intelligence Practice Regulatory Remediation and Compliance Transformation Practice Technology Partners Assessment with Accenture RPA methodology and criteria to identify manual processes to be automated Configuration and system integration of automation solution Definition and implementation of Robotics Operating Model By collaborating with Accenture, clients will have access to a global set of subject matter advisors Access to 20+ offerings in regulatory and compliance practice Regulatory Reporting skills across capabilities (Target Operating Model, requirements, workflows…) Accenture is working with clients and third party vendors to expand existing capabilities and assets into an efficient Regulatory Reporting process Blueprism®

15. ACCENTURE CONTACTS Brian Stefka Senior Manager Regulatory Reporting Lead Dallas, Texas brian.stefka@accenture.com Albert Janer Consultant Accenture Finance & Risk New York albert.janer.becerra@accenture.com Charles Babcock Manager Regulatory Reporting Lead New York charles.babcock@accenture.com Samantha Regan Managing Director Global Regulatory and Compliance Lead New York Samantha.Regan@accenture.com Robimon Varughese Senior Manager Accenture Finance & Risk – RPA Lead New York robimon.varughese@accenture.com

16. LEGEND CFPB: Consumer Financial Protection Bureau CFTC: U.S. Commodity Futures Trading Commission ESFS: European System of Financial Supervision FDIC: Federal Deposit Insurance Corporation FHFA: Federal Housing Finance Agency FINRA: Financial Industry Regulatory Authority FRB: Federal Reserve Board NAIC: National Association of Insurance Commissioners NCUA: National Credit Union Administration OCC: Office of the Comptroller of the Currency RCSA: Risk Control Self Assessment SEC: U.S. Securities and Exchange Commission SOX: Sarbanes-Oxley Act Copyright © 2017 Accenture All rights reserved.16

17. This document makes reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. ABOUT ACCENTURE Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network —Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com DISCLAIMER This presentation is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. Copyright © 2017 Accenture All rights reserved. 17

19. Robotics Artificial Intelligence Desktop Automation Robotic Process Automation CognitiveComputing Digital Assistents • Basic Automation • Manual operator initiates a sequence of automated steps • Consolidating data from multiple sources into a single view to complete a process • Jacada Inc, Exhilant Technologies Private Limited (Fusion) • Virtual Workers • Scheduled engine mimics execution of manual user's repetitive activities without requiring intervention or assistance • Applying technology to manipulate existing application software to complete a process • Pegasystems Inc (OpenSpan), Blueprism®, UiPath Ltd, Automation Anywhere, Inc. • Machine Learning • Systems that gain knowledge from data as “experience” and generalize what is learned in upcoming situations • Artificial intelligence and automation technology to change the processes • Accenture Cognitive RPA, IBM Watson®, Nuance Communications, Inc. • Smart Hybrids • Computer-generated character that simulates a conversation to answer questions or queries and provide guidance • Computer-generated conversation to simulate a response to answer questions or queries and provide guidance. • Accenture Automated Digital Assistant, IPsoft Inc. (Amelia) Deciding Assisting Decisions Scripting Assisting Activities Replacing Executing Processes Copyright © 2017 Accenture. All rights reserved. 19 Intelligent automation tools have advanced significantly over the past decade SPECTRUM OF INTELLIGENT AUTOMATION TOOLS

Financial Reporting Robotics

Financial Reporting Robotics

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