The document is an agenda and presentation slides for an EVM (Economic Value Management) teach-in at Swiss Re on March 31, 2008. The presentation introduces EVM methodology, figures, and compares EVM to embedded value. EVM is Swiss Re's integrated economic framework used for planning, pricing, reserving and managing the business. It separates underwriting and investment performance, recognizes profits at inception based on expected cash flows, and measures performance after capital costs. Sample EVM calculations and investment performance examples are provided to illustrate the methodology.
This document contains information about a presentation on key risk indicators (KRIs). It discusses how KRIs can help companies anticipate strategic risks from disruptors and better achieve their goals. Examples of KRIs are provided from the energy industry, including indicators for issues like plant maintenance, customer complaints, and wholesale gross margins. The document emphasizes that KRIs should be used to support decision making and drive actions to manage risks.
Enterprise Risk Management and SustainabilityJeff B
An overview of our endeavors at implementing ISO 31000 enterprise risk management and the importance of establishing good risk culture within the company.
Risk Management Procedure And Guidelines PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Risk Management Procedure And Guidelines PowerPoint Presentation Slides. This deck consists of total of forty eight slides. It has PPT slides highlighting important topics of Risk Management Procedure And Guidelines PowerPoint Presentation Slides. This deck comprises of amazing visuals with thoroughly researched content. Each template is well crafted and designed by our PowerPoint experts. Our designers have included all the necessary PowerPoint layouts in this deck. From icons to graphs, this PPT deck has it all. The best part is that these templates are easily customizable. Just click the DOWNLOAD button shown below. Edit the colour, text, font size, add or delete the content as per the requirement. Download this deck now and engage your audience with this ready made presentation.
Having trouble with your enterprise risk management strategy? Map it.Andrew Smart
In 2016, it was estimated that 67% of well-formulated strategies failed due to poor execution and 1 in 3 business leaders rate their firm as poor or very poor at the implementation of strategy.
Like business strategy, the risk management strategy presents execution challenges for the CRO and Risk Management teams.
Paraphrasing the original article that introduced the Strategy Map, in the presentation, Ascendore CEO outlines how the Strategy Map can be used as part of an overall strategy management system to improve the execution of the risk management strategy. This presentation is based on an Ascendore customers use of the Strategy Map for Operational Risk Management.
This document discusses techniques for basic risk identification:
1) Interviewing subject matter experts allows risks to be identified that may not be known to the project team. Brainstorming encourages identifying many risks but must be facilitated properly. The Delphi technique uses anonymous interviews to get expert opinions.
2) Nominal group technique combines individual and group work in a structured process. Crawford slips have individuals privately write risks for fast identification. Analogy identifies risks based on similarities to past projects.
3) Checklists and templates systematize the identification of risks based on historical data from other organizations.
Integrating Risk into your Balanced Scorecard Andrew Smart
Pulling together into a single framework the two separate disciplines of strategy management and risk management, and how it is possible to integrate it with Balanced Scorecard. This presentation provides a practical guide for organizations to shape and execute sustainable strategies with full understanding of how much risk they are willing to accept in pursuit of strategic goals.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Business & consulting toolkits free sample in powerpointDonald Gest
The document advertises business and consulting toolkits created by former consultants from McKinsey, Deloitte, and BCG. It claims the toolkits save thousands of hours of work and allow users to learn best practices from top companies. The toolkits cover various topics like corporate strategy, finance, marketing, and more. Users can access templates, frameworks, and other tools typically used by consultants. The document promotes the toolkits as a cheaper alternative to hiring consultants directly.
This document contains information about a presentation on key risk indicators (KRIs). It discusses how KRIs can help companies anticipate strategic risks from disruptors and better achieve their goals. Examples of KRIs are provided from the energy industry, including indicators for issues like plant maintenance, customer complaints, and wholesale gross margins. The document emphasizes that KRIs should be used to support decision making and drive actions to manage risks.
Enterprise Risk Management and SustainabilityJeff B
An overview of our endeavors at implementing ISO 31000 enterprise risk management and the importance of establishing good risk culture within the company.
Risk Management Procedure And Guidelines PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Risk Management Procedure And Guidelines PowerPoint Presentation Slides. This deck consists of total of forty eight slides. It has PPT slides highlighting important topics of Risk Management Procedure And Guidelines PowerPoint Presentation Slides. This deck comprises of amazing visuals with thoroughly researched content. Each template is well crafted and designed by our PowerPoint experts. Our designers have included all the necessary PowerPoint layouts in this deck. From icons to graphs, this PPT deck has it all. The best part is that these templates are easily customizable. Just click the DOWNLOAD button shown below. Edit the colour, text, font size, add or delete the content as per the requirement. Download this deck now and engage your audience with this ready made presentation.
Having trouble with your enterprise risk management strategy? Map it.Andrew Smart
In 2016, it was estimated that 67% of well-formulated strategies failed due to poor execution and 1 in 3 business leaders rate their firm as poor or very poor at the implementation of strategy.
Like business strategy, the risk management strategy presents execution challenges for the CRO and Risk Management teams.
Paraphrasing the original article that introduced the Strategy Map, in the presentation, Ascendore CEO outlines how the Strategy Map can be used as part of an overall strategy management system to improve the execution of the risk management strategy. This presentation is based on an Ascendore customers use of the Strategy Map for Operational Risk Management.
This document discusses techniques for basic risk identification:
1) Interviewing subject matter experts allows risks to be identified that may not be known to the project team. Brainstorming encourages identifying many risks but must be facilitated properly. The Delphi technique uses anonymous interviews to get expert opinions.
2) Nominal group technique combines individual and group work in a structured process. Crawford slips have individuals privately write risks for fast identification. Analogy identifies risks based on similarities to past projects.
3) Checklists and templates systematize the identification of risks based on historical data from other organizations.
Integrating Risk into your Balanced Scorecard Andrew Smart
Pulling together into a single framework the two separate disciplines of strategy management and risk management, and how it is possible to integrate it with Balanced Scorecard. This presentation provides a practical guide for organizations to shape and execute sustainable strategies with full understanding of how much risk they are willing to accept in pursuit of strategic goals.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Business & consulting toolkits free sample in powerpointDonald Gest
The document advertises business and consulting toolkits created by former consultants from McKinsey, Deloitte, and BCG. It claims the toolkits save thousands of hours of work and allow users to learn best practices from top companies. The toolkits cover various topics like corporate strategy, finance, marketing, and more. Users can access templates, frameworks, and other tools typically used by consultants. The document promotes the toolkits as a cheaper alternative to hiring consultants directly.
Identify risks and hazards that have the potential to harm any process or project. Use content-ready Risk Assessment PowerPoint Presentation Slides to analyse what can go wrong, how likely it is to happen, what potential consequences are, and how tolerable the identified is. With the help of ready-made risk assessment PowerPoint presentation slideshow, use control measures to eliminate or reduce any potential risk related situation. This deck comprises of various templates to control risks such as types of risks, risk categories, identify the risk categories, stakeholder engagement, stakeholders risk appetite, risk tolerance, procedure, risk management plan, risk register, risk identification, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk item tracking, risk impact and probability analysis, risk mitigation strategies, qualitative risk analysis, quantitative risk analysis, risk management process, risk management steps, and more. These templates are completely customizable. You can easily edit the color, text, icon and font size as per your need. Add or remove content, if needed. Grab this easy-to-understand risk assessment PowerPoint templates to figure out what could cause harm to the project, whether the hazards could be eliminated or not, what preventive measures should be taken to control the risks. Download risk assessment PPT slides now to execute the project easily. Behave in a down to earth fashion with our Risk Assessment Powerpoint Presentation Slides. Give them a glimpse of your fact based approach. https://bit.ly/3dCPKul
PECB Webinar: Aligning ISO 31000 and Management of Risk MethodologyPECB
The webinar covers:
• ISO 31000 as the adopted standard, for ISO standards that have risk components, such as ISO 27005 and OHSAS 18001
• Description of Management of Risk (MoR) – how organizations can benefit
• Complementary values that ISO 31000 and MoR bring to each other
• How Risk Managers can evolve a practical approach to carrying out Risk Processes
Presenter:
This webinar was presented by PECB Trainer Orlando Olumide Odejide, an experienced Enterprise Architect and Chief Trainer for Training Heights Limited.
This complete presentation has a set of thirty two slides to show your mastery of the subject. Use this ready-made PowerPoint presentation to present before your internal teams or the audience. All presentation designs in this Risk Analysis PowerPoint Presentation Slides have been crafted by our team of expert PowerPoint designers using the best of PPT templates, images, data-driven graphs and vector icons. The content has been well-researched by our team of business researchers. The biggest advantage of downloading this deck is that it is fully editable in PowerPoint. You can change the colors, font and text without any hassle to suit your business needs.
Integrating Strategy and Risk ManagementAndrew Smart
"A Holistic Approach to Managing Risk amidst Global Uncertainty"
The RMA/Cass Business School
10–14 February 2013
Advanced Risk Management Programme
Organised by Andrew Smart & Nicholas Hawke
In today’s fast-moving, complex environment, risk executives must cultivate an understanding across all risks and businesses. Business problems are multifaceted, interrelated, and increasingly global. Executives must possess enhanced skills to identify and address a wide range of risks with an integrated approach and enterprise-wide perspective.
The RMA/Cass Advanced Risk Management Programme, led by the faculty at Cass, one of the UK’s top business schools, exposes participants to a rigorous, yet inspiring blend of theory, practice and cutting-edge research, instilling knowledge and skills applicable to the real world of global business. In addition to its focus on the known and quantifiable risks of credit, market, and operational, the programme concentrates on the unknowable and difficult to measure risks, including business, strategic, and reputation. Cass has excellent links to the City of London firms and institutions and is able to complement Cass faculty with guest faculty and senior level business practitioners, considered by their peers to be industry thought leaders
Areas of focus for The RMA/Cass Advanced Risk Management Programme include:
• Risk management as a strategic competitive strength
• An integrated approach to risk management
• Fostering a culture and climate that openly communicates risk
• A framework for rapidly responding to known risks and unraveling the complexities of the unknown
• A focus on risk informed by global perspectives.
Operational Excellence Models, Strategies, Principles & ToolsAurelien Domont, MBA
Toolkit Downloadable at www.slidebooks.com | Created By ex-McKinsey & Deloitte Consultants | Download and Reuse Now 10+ Operational Excellence Models, Strategies, Principles & Tools.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
The document outlines the risk management process and procedures for a company. It introduces risk management and identifies types of risk categories. It then describes the procedure for managing risks, which includes risk planning, identification, assessment, monitoring and tracking. Tools and practices for risk analysis are also covered, along with engaging stakeholders. The document closes with an overview of the risk management lifecycle.
This document summarizes a website that provides information and resources for project managers on risk management. It includes definitions of project risk, descriptions of the risk management process and tips for identifying, prioritizing, and managing risks. Specific topics covered include risk identification techniques, using a risk matrix, the risk register form, and different strategies for responding to risks such as mitigation, transfer, avoidance and acceptance. Flowcharts and diagrams are provided to illustrate risk management concepts and processes.
Introducing KRI model know your customersBaby Sirota
This document introduces key risk indicators (KRI) models for managing customer credit and risks. It discusses how KRIs can be used to measure and visualize risks through business intelligence dashboards. Specific KRIs are identified for credit risk, such as late payments, credit limits exceeded, number of bank accounts, and life expectancy in a given sector. The KRI dashboards would provide an interactive interface to examine individual high-risk customers and make informed decisions about credit management. Customized KRI models and business analytics solutions are offered to help clients optimize performance and decision-making.
The underlying premise of enterprise risk management is that the Company exists to provide value for its stakeholders – customers, employees, and shareholders. Like any business, every Company faces some uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. These capabilities inherent in enterprise risk management help management achieve the Company’s performance and profitability targets, and minimize loss of resources. Enterprise risk management helps ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the Company’s reputation and associated consequences. In sum, enterprise risk management helps the Company get to where it wants to go and avoid pitfalls and surprises along the way. Enterprise risk management encompasses:
• Aligning Risk Appetite and Strategy
• Enhancing Risk Response Decisions
• Reducing Operational Surprises and Losses
• Identifying and Managing Multiple and Cross-Enterprise Risks
• Seizing Opportunities
• Improving Deployment of Capital
• Leveraging Talent, Structure, Process, and Capital
The document discusses understanding and articulating an organization's risk appetite. It begins by defining risk appetite as the amount of risk an organization is willing to take on in pursuit of its strategic objectives. It then discusses how a clearly understood and articulated risk appetite statement can help align decision making with risk management. The document provides an overview of developing a risk appetite statement, including aligning the risk profile with business plans, determining risk thresholds, and getting board approval of a formal risk appetite statement. It emphasizes linking the risk appetite to performance monitoring and reporting to assess compliance with the stated risk appetite.
Go to www.slidebooks.com to access the editable version in Powerpoint and Excel of this Business Toolkit created by former management consultants from Deloitte and McKinsey.
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Operational Risk Assessment Powerpoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of twenty four slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below.
Business Continuity Management PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Business Continuity Management PowerPoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with fifty-two slides is here to help you to strategize, plan, analyze, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Business Continuity Management PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
This document outlines a risk management module that describes the risk management lifecycle and procedures for managing risk. It discusses introducing risk management and identifying risk categories. It then covers the full procedure for managing risk, including planning, identification, assessment, monitoring, and tracking. It also addresses stakeholder engagement, including risk appetite and tolerance. Finally, it discusses tools and practices for risk analysis, impact analysis, risk mitigation strategies, and qualitative and quantitative analysis. The overall document provides an overview of a comprehensive risk management process.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
Embedding RCSA into Strategic Planning and Business StrategyAndrew Smart
Embedding RCSA into Strategic Planning and Business Strategy
This presentation was prepared for the New Generation Operational Risk: Risk Culture and Business Conduct Behaviour conference in Helsinki, Finland.
In this presentation, Ascendore CEO, Andrew Smart outlines how to integrate Risk & Control Self Assessment into the Strategic Planning and Business Strategy.
Based on the Risk-Based Performance Management approach, during this presentation an integrated approach to strategy and risk management is outlined, with risk appetite playing a central role.
Enterprise risk management frameworks help organizations manage uncertainty and introduce strategic management frameworks to address risks. These include frameworks for corporate foresight, business planning, enterprise architecture, risk management, and performance management. Futures studies techniques like horizon scanning and analyzing drivers of change can provide insights to inform risk management and strategic decision making.
Governance Culture & Incentives- Fundamentals of Operational RiskAndrew Smart
Governance, Culture & Incentives. -Fundamentals of Operational Risk. This presentation provides some practical tools to answer three key questions and create alignment.
How are insurers investing and what are the most effective investment objectives out there?
POINTS OF DISCUSSION
• Solvency II has had marginal effect on asset allocation decision making
• Insurers are seeking out good quality loans, property, infrastructure and direct lending opportunities
• Insurers portfolios looking to generate higher yields in a risk controlled way
• InsureTech is on the rise and here to stay
The number of victims of disaster events in 2014 was one of the lowest recorded, even though the number of natural catastrophes was the highest ever in a single year; 336 events, 189 were natural and 147 man-related.
Total economic losses generated were around USD 110 billion
Identify risks and hazards that have the potential to harm any process or project. Use content-ready Risk Assessment PowerPoint Presentation Slides to analyse what can go wrong, how likely it is to happen, what potential consequences are, and how tolerable the identified is. With the help of ready-made risk assessment PowerPoint presentation slideshow, use control measures to eliminate or reduce any potential risk related situation. This deck comprises of various templates to control risks such as types of risks, risk categories, identify the risk categories, stakeholder engagement, stakeholders risk appetite, risk tolerance, procedure, risk management plan, risk register, risk identification, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk item tracking, risk impact and probability analysis, risk mitigation strategies, qualitative risk analysis, quantitative risk analysis, risk management process, risk management steps, and more. These templates are completely customizable. You can easily edit the color, text, icon and font size as per your need. Add or remove content, if needed. Grab this easy-to-understand risk assessment PowerPoint templates to figure out what could cause harm to the project, whether the hazards could be eliminated or not, what preventive measures should be taken to control the risks. Download risk assessment PPT slides now to execute the project easily. Behave in a down to earth fashion with our Risk Assessment Powerpoint Presentation Slides. Give them a glimpse of your fact based approach. https://bit.ly/3dCPKul
PECB Webinar: Aligning ISO 31000 and Management of Risk MethodologyPECB
The webinar covers:
• ISO 31000 as the adopted standard, for ISO standards that have risk components, such as ISO 27005 and OHSAS 18001
• Description of Management of Risk (MoR) – how organizations can benefit
• Complementary values that ISO 31000 and MoR bring to each other
• How Risk Managers can evolve a practical approach to carrying out Risk Processes
Presenter:
This webinar was presented by PECB Trainer Orlando Olumide Odejide, an experienced Enterprise Architect and Chief Trainer for Training Heights Limited.
This complete presentation has a set of thirty two slides to show your mastery of the subject. Use this ready-made PowerPoint presentation to present before your internal teams or the audience. All presentation designs in this Risk Analysis PowerPoint Presentation Slides have been crafted by our team of expert PowerPoint designers using the best of PPT templates, images, data-driven graphs and vector icons. The content has been well-researched by our team of business researchers. The biggest advantage of downloading this deck is that it is fully editable in PowerPoint. You can change the colors, font and text without any hassle to suit your business needs.
Integrating Strategy and Risk ManagementAndrew Smart
"A Holistic Approach to Managing Risk amidst Global Uncertainty"
The RMA/Cass Business School
10–14 February 2013
Advanced Risk Management Programme
Organised by Andrew Smart & Nicholas Hawke
In today’s fast-moving, complex environment, risk executives must cultivate an understanding across all risks and businesses. Business problems are multifaceted, interrelated, and increasingly global. Executives must possess enhanced skills to identify and address a wide range of risks with an integrated approach and enterprise-wide perspective.
The RMA/Cass Advanced Risk Management Programme, led by the faculty at Cass, one of the UK’s top business schools, exposes participants to a rigorous, yet inspiring blend of theory, practice and cutting-edge research, instilling knowledge and skills applicable to the real world of global business. In addition to its focus on the known and quantifiable risks of credit, market, and operational, the programme concentrates on the unknowable and difficult to measure risks, including business, strategic, and reputation. Cass has excellent links to the City of London firms and institutions and is able to complement Cass faculty with guest faculty and senior level business practitioners, considered by their peers to be industry thought leaders
Areas of focus for The RMA/Cass Advanced Risk Management Programme include:
• Risk management as a strategic competitive strength
• An integrated approach to risk management
• Fostering a culture and climate that openly communicates risk
• A framework for rapidly responding to known risks and unraveling the complexities of the unknown
• A focus on risk informed by global perspectives.
Operational Excellence Models, Strategies, Principles & ToolsAurelien Domont, MBA
Toolkit Downloadable at www.slidebooks.com | Created By ex-McKinsey & Deloitte Consultants | Download and Reuse Now 10+ Operational Excellence Models, Strategies, Principles & Tools.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
The document outlines the risk management process and procedures for a company. It introduces risk management and identifies types of risk categories. It then describes the procedure for managing risks, which includes risk planning, identification, assessment, monitoring and tracking. Tools and practices for risk analysis are also covered, along with engaging stakeholders. The document closes with an overview of the risk management lifecycle.
This document summarizes a website that provides information and resources for project managers on risk management. It includes definitions of project risk, descriptions of the risk management process and tips for identifying, prioritizing, and managing risks. Specific topics covered include risk identification techniques, using a risk matrix, the risk register form, and different strategies for responding to risks such as mitigation, transfer, avoidance and acceptance. Flowcharts and diagrams are provided to illustrate risk management concepts and processes.
Introducing KRI model know your customersBaby Sirota
This document introduces key risk indicators (KRI) models for managing customer credit and risks. It discusses how KRIs can be used to measure and visualize risks through business intelligence dashboards. Specific KRIs are identified for credit risk, such as late payments, credit limits exceeded, number of bank accounts, and life expectancy in a given sector. The KRI dashboards would provide an interactive interface to examine individual high-risk customers and make informed decisions about credit management. Customized KRI models and business analytics solutions are offered to help clients optimize performance and decision-making.
The underlying premise of enterprise risk management is that the Company exists to provide value for its stakeholders – customers, employees, and shareholders. Like any business, every Company faces some uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. These capabilities inherent in enterprise risk management help management achieve the Company’s performance and profitability targets, and minimize loss of resources. Enterprise risk management helps ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the Company’s reputation and associated consequences. In sum, enterprise risk management helps the Company get to where it wants to go and avoid pitfalls and surprises along the way. Enterprise risk management encompasses:
• Aligning Risk Appetite and Strategy
• Enhancing Risk Response Decisions
• Reducing Operational Surprises and Losses
• Identifying and Managing Multiple and Cross-Enterprise Risks
• Seizing Opportunities
• Improving Deployment of Capital
• Leveraging Talent, Structure, Process, and Capital
The document discusses understanding and articulating an organization's risk appetite. It begins by defining risk appetite as the amount of risk an organization is willing to take on in pursuit of its strategic objectives. It then discusses how a clearly understood and articulated risk appetite statement can help align decision making with risk management. The document provides an overview of developing a risk appetite statement, including aligning the risk profile with business plans, determining risk thresholds, and getting board approval of a formal risk appetite statement. It emphasizes linking the risk appetite to performance monitoring and reporting to assess compliance with the stated risk appetite.
Go to www.slidebooks.com to access the editable version in Powerpoint and Excel of this Business Toolkit created by former management consultants from Deloitte and McKinsey.
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Operational Risk Assessment Powerpoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of twenty four slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below.
Business Continuity Management PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Business Continuity Management PowerPoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with fifty-two slides is here to help you to strategize, plan, analyze, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Business Continuity Management PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
This document outlines a risk management module that describes the risk management lifecycle and procedures for managing risk. It discusses introducing risk management and identifying risk categories. It then covers the full procedure for managing risk, including planning, identification, assessment, monitoring, and tracking. It also addresses stakeholder engagement, including risk appetite and tolerance. Finally, it discusses tools and practices for risk analysis, impact analysis, risk mitigation strategies, and qualitative and quantitative analysis. The overall document provides an overview of a comprehensive risk management process.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
Embedding RCSA into Strategic Planning and Business StrategyAndrew Smart
Embedding RCSA into Strategic Planning and Business Strategy
This presentation was prepared for the New Generation Operational Risk: Risk Culture and Business Conduct Behaviour conference in Helsinki, Finland.
In this presentation, Ascendore CEO, Andrew Smart outlines how to integrate Risk & Control Self Assessment into the Strategic Planning and Business Strategy.
Based on the Risk-Based Performance Management approach, during this presentation an integrated approach to strategy and risk management is outlined, with risk appetite playing a central role.
Enterprise risk management frameworks help organizations manage uncertainty and introduce strategic management frameworks to address risks. These include frameworks for corporate foresight, business planning, enterprise architecture, risk management, and performance management. Futures studies techniques like horizon scanning and analyzing drivers of change can provide insights to inform risk management and strategic decision making.
Governance Culture & Incentives- Fundamentals of Operational RiskAndrew Smart
Governance, Culture & Incentives. -Fundamentals of Operational Risk. This presentation provides some practical tools to answer three key questions and create alignment.
How are insurers investing and what are the most effective investment objectives out there?
POINTS OF DISCUSSION
• Solvency II has had marginal effect on asset allocation decision making
• Insurers are seeking out good quality loans, property, infrastructure and direct lending opportunities
• Insurers portfolios looking to generate higher yields in a risk controlled way
• InsureTech is on the rise and here to stay
The number of victims of disaster events in 2014 was one of the lowest recorded, even though the number of natural catastrophes was the highest ever in a single year; 336 events, 189 were natural and 147 man-related.
Total economic losses generated were around USD 110 billion
ICLR: Lessons learned from the 2013 Calgary floods (March 26, 2015)glennmcgillivray
• Internationally, overland flood is the most common natural peril
• Flooding – both riverine and urban - caused by extreme precipitation events –rain and snow – are worsening and will continue to worsen as a result of climate change
• Densification of cities is also a major contributing factor leading to an increase in both frequency and severity of riverine and urban flooding and will continue to be a key factor in the years ahead
• Lessons can be taken from virtually all flooding events, and applied to other high risk areas, regardless of where they are located
• As such, this session will consider the 2013 Calgary, Alberta, Canada floods – Canada’s most expensive natural catastrophe loss ever – as a case study and look at a number of lessons learned from the event.
In June 2013, southern Alberta in Canada experienced extensive damage from riverine flooding. More than 250 mm of rain fell over a 36 hour period just outside the City of Calgary (population 1 million) and rapidly flowed east. These storms also brought heavy rains in many urban centres, overwhelming sewer systems. Total insured losses exceeded CAD 1.7b with economic losses at around CAD 6b, making the event the costliest natural catastrophe in Canadian history. Actions to prevent or reduce the risk of flood damage must include actions to address both riverine and urban flooding. Many of these actions will be outlined in this presentation.
Cyber Versicherung
Philippe Aerni
Head FinPro, Swiss Re Corporate Solutions
Willy D. Stoessel
Head Cyber, Technology & Construction, Swiss Re Corporate Solutions
Überall dort, wo ein Internetanschluss vorhanden ist, gibt es auch ein Risiko. Unabhängig davon, ob sie gross oder klein, öffentlich oder privat ist – fast jede Organisation ist der Gefahr möglicher Schäden durch eine Cyberattacke ausgesetzt. Die meisten von uns werden denken: «Aber die Wahrscheinlichkeit ist doch recht gering.» Tatsächlich ist die Gefahr jedoch sehr real. Umfang und Raffinesse schädlicher Cyberaktivitäten haben erheblich zugenommen, und die Kosten einer Cyberattacke können eine Grössenordnung von Milliarden von US-Dollars erreichen. Wenn das Cyberrisiko nicht aktiv von allen Beteiligten (Unternehmen, Versicherungsträgern, Regierungen und Aufsichtsbehörden) angepackt wird, werden die finanziellen Auswirkungen auf Organisationen weiterhin signifikant sein.
Wir werden eine Einführung in die Versicherungslösungen geben, die derzeit zur Deckung von Risikoexponierungen, die mit dem Cyberspace zusammenhängen, angeboten werden. Wir werden die Herausforderungen skizzieren, mit denen die Versicherungswirtschaft heute angesichts der sich ständig wandelnden Cyberrisikoumgebung konfrontiert wird. Wir werden einige auch in den Medien aufgegriffene Fälle und die Auswirkungen präsentieren, die sie auf eine Versicherungspolice haben. Wir wollen einen Überblick über die derzeitige Zusammenarbeit zwischen IBM und Swiss Re Corporate Solutions geben und die Frage beantworten, wie wir die Zukunft der Cyberversicherung gestalten wollen.
Martyn Parker - Country risk management and financial preparedness for disasersGlobal Risk Forum GRFDavos
1) Country risk management involves identifying, assessing, and implementing prevention, mitigation, and adaptation strategies for natural disasters, with balanced allocation of funds between prevention/mitigation and post-disaster response.
2) Economic losses from natural catastrophes have significantly exceeded insured losses globally, highlighting the protection gap.
3) Risk transfer tools such as catastrophe bonds, index-based insurance, and parametric contracts have increasingly been used by public entities to finance post-disaster costs and support adaptation.
1) The document discusses various frameworks for performance management, including defining performance, setting performance criteria and measures, and developing balanced scorecards.
2) It summarizes Simon's "levers of control" framework which includes beliefs, boundary, diagnostic, and interactive control systems.
3) Otley's five key areas for performance management are discussed - objectives and strategies, performance measures, targets, rewards, and information systems.
The document discusses delivering world class profitability and cost management. It describes how companies can better understand how they make profits and the relationships between cost objects to identify inefficiencies. It also talks about how to support business decisions through simulations and what-if analysis. Finally, it provides an example of how one famous American bank used these techniques.
The document outlines the agenda and materials for Swiss Re's Investors' Day on June 15, 2005. It includes presentations on corporate strategy, Swiss Re's global business, risk management, asset management strategy, capital adequacy and outlook. The asset management strategy section discusses Swiss Re's absolute return approach to investment management, including constructing replicating portfolios to determine insurance liability values and tailoring investments to maximize shareholder returns while considering liability structures. Active management examples provided include equity exposure management and fixed income duration adjustments.
Michael Gowlett presented on implementing Earned Value Management (EVM). He began with an overview of EVM, explaining that it allows organizations to more effectively measure project time, cost, and quality by combining measurements of scope, schedule, and cost. He then discussed why organizations should use EVM to detect cost overruns and schedule slippages early. Gowlett also covered available EVM tools, how to implement EVM through a case study at a bank, and the advantages and benefits of EVM like early warning of deviations and improved project visibility.
This presentation provides some insight in the
business model concept and the factors influencing its sustainability. Some hands-on tools are shown to (1) identify a firm\'s business model, (2) analyse the influence of market developments on the business model, and (3) assess the sustainability of the business model in order to remain competitive on the market.
Presentation by Vida Rozite IEA and Julia Reinaud IIP given during the SEAI forum in dublin, Ireland "Creating the Right Environment for ISO 50001"
More information:
Sourcing Lecture 6 Directing and Shared ServicesFrank Willems
The document provides an agenda and content for a lecture on shared service and directing sourcing. The key points covered include:
- Defining shared services and the goal of a Shared Service Center to improve quality while cutting costs.
- The components of shared services including processes, customers, systems, organization, and how technology, process and organization are interconnected.
- An overview of the directing process including linking customer demand to supplier solutions by understanding customer needs, translating them into solutions, and arranging service delivery.
- A process model for the directing organization consisting of innovation management, change management, and service management process chains derived from the CMMi-ACQ model.
The lecture provides frameworks and examples
Business continuity management (BCM) aims to establish a strategic and operational framework to improve organizational resilience against disruptions. Common issues include a lack of alignment between IT processes and business processes. To address this "gap", organizations should appoint an appropriate sponsor, follow best practices and standards, and regularly test plans. Effective BCM requires a holistic approach led by business needs rather than being delegated solely to IT.
This document provides an overview of Earned Value Management Systems (EVMS). It begins with definitions of EVMS, what it measures, and how it helps assess project performance. It then discusses the key components of EVMS including integration with project management, the 32 criteria in the ANSI standard, and formulas used in analysis. Examples are provided to illustrate EVMS concepts including a cookie baking project. The document concludes with a discussion of software tools to support EVMS implementation.
Business and Strategic Alignment in EA – Practical Guidelines Based on Indust...IASA
Business and Strategic Alignment in EA – Practical Guidelines Based on Industry Best Practices - Dave Guevara
As IASA members we are constantly reminded that architects are responsible for connecting business to IT. Business alignment is indicated in architecture frameworks like TOGAF or Zachman as an important step. However, the challenge comes in getting this done where EA is not top-down driven, short term deadlines always win over strategic efforts and standards like ITIL, COBIT and BPMN help but don’t really answer how There is a great deal of writing about EA, SOA, their benefits and how they need to be driven by business needs. The architect is still left with diverse guidance that provides little practical help on how exactly to conduct line-of-sight alignment between business strategy and system implementation. In this discussion, we will look at this issue from four perspectives:
1. Practical means of determining business value and impact, then creating alignment to your future state architectures.
2. Top-down view using an EA framework.
3. Bottoms up view in a future state architecture
4. Business functional model related to an application functional model
5. Practical suggestions that work now and can scale over time
at ADAPT: AgileEVM Delivering Value within Constrained SystemsBrent Barton
The document discusses Agile Earned Value Management (AgileEVM) as an approach to integrate earned value management with Agile project management frameworks. It describes some of the challenges with applying traditional EVM to Agile projects due to its reliance on fully defined requirements upfront. AgileEVM uses planning packages to forecast future work that is not yet fully defined and refines the plans as more details become known. It also focuses on delivering working software in short iterations rather than intermediate work products.
Earned Value Management and Agile Tips for Success Brent Barton
As the Department of Defense focuses on "delivering 75% solutions in months [instead of] 100% solutions in years" Agile is finding its way into big, traditionally managed programs. This event http://www.afei.org/events/2A01/Pages/default.aspx specifically addresses Agile in Defense. This presentation was an invitation following a successful meeting at the ADAPT meeting.
This presentations tells the story of the Risk-led transformation that HML has undertaken over the last 18 months. It outlines some of the key challenges, how they were overcome and the benefits delivered.
The document provides an overview of a presentation on implementing an Earned Value Management System (EVMS) at a federal agency on a low budget. It discusses EVMS concepts and benefits. It then details a case study where a recession-proof EVMS was developed using existing tools and processes to integrate project scheduling, budgeting, reporting, and analysis with minimal costs. The solution standardized processes, automated data collection and linking of schedules and costs. It improved project performance monitoring, accountability, and success rates.
New York Institute of Management provides Premier Executive Education Solutions. We are committed to advance the management practice and enhance organizational performance by creating and disseminating business knowledge and making it relevant, effective and universally accessible.
To find out more about our Certificate and Course Portfolio of programs please visit www.nyimexec.com
Using Specific Intergovernmental Transfers to Buy Local Results
The document discusses using performance grants to link subnational government performance measurement to management. It presents a basic framework of using indicators to trigger fiscal rewards for subnational governments. An 8-point checklist is provided for designing effective performance grant programs, including ensuring objectives are clear, indicators are measurable and attributable to subnational actions, and incentives are adequate and credible. International examples from countries like Australia, Russia, Indonesia and EU members demonstrate different models of performance grants.
Solvency II is the biggest regulatory change to bring insurers and reinsurers under one regime. It impacts all areas of a business and requires an enterprise-wide initiative. Early adopters are helping set industry standards. The Gain-Line Consortium provides Solvency II expertise and resources to help clients develop customized solutions. Solvency II requires alignment across functions and consideration of multiple stakeholders' priorities through effective risk management.
C.F. Yam, a regional general manager of an insurance company, will give a public lecture on the value of actuaries for management. In the lecture, he will discuss how actuaries can add business value through effective communication and investment knowledge. He will also address how actuaries may need to further develop practical skills to help service the growing annuity market and influence business success. The event details include the date, time, location and registration information for the lecture at the University of Hong Kong.
The presentation comprised the strategy to improve employee performances through compensation and benefit. The presentation also includes case study of FMCG industry.
Value Flow Science - Fitter lifecycles from lean balanced scorecards (2011)Neil Thompson
This document discusses using Value Flow ScoreCards to improve software testing and development processes. Value Flow ScoreCards use six viewpoints (supplier, process, product, customer, financial, improvement) to establish objectives, measures, and initiatives. This helps balance stakeholder needs and do work "well enough." The document also discusses applying lean principles to improve the flow of working software through the development lifecycle and reduce impediments. Overall it promotes using flexible, holistic techniques like Value Flow ScoreCards to define better testing strategies, coverage, and processes.
Investment management is a key function for insurance companies to manage investments backing reserves and capital. Zurich Insurance Group commissions its investment management team to generate superior risk-adjusted returns relative to liabilities for shareholders and policyholders. Investment management creates value through a process that includes asset-liability management, strategic asset allocation, market strategy, asset manager selection, portfolio construction, and efficient asset management. The investment strategy aims to maximize economic objectives while minimizing unrewarded risks in order to create long-term value for stakeholders.
1. Insurance companies hold significant investment assets to back insurance liabilities and capital reserves. Proper investment management of these assets is crucial as it impacts profitability and the ability to pay claims.
2. Insurers aim to balance risk and return in their investments. While higher returns require higher risk, insurers must ensure risks do not jeopardize their ability to meet liabilities.
3. Investment risk for insurers relates to potential mismatches between assets and liabilities due to market changes. Insurers practice asset-liability management to monitor and control this risk exposure.
The document is from a meeting between analysts and the Chief Investment Officer of Swiss Re on April 10, 2002 in Zurich, Switzerland. It summarizes Swiss Re's investment strategy and performance in 2001. Specifically, it notes that Swiss Re increased its investments in US fixed income securities and US dollar exposure in 2001. It also reduced the duration of its North American bond portfolio as interest rates were expected to decline. Additionally, the document shows that Swiss Re gradually increased its equity exposure in 2001 by purchasing stocks on market dips and not renewing hedges.
Swiss Re held an analysts' meeting on April 26, 2001 in Zurich, Switzerland. The document discusses Swiss Re's 2000 investment results, including that the investment result exceeded expectations at CHF 9.1 billion. It also discusses Swiss Re's more conservative asset allocation in 2000 with a reduction in equity exposure and increase in fixed income investments. Additionally, it notes that Swiss Re earned a substantial return in excess of market indices in 2000 while taking limited risk.
Investment Management – a creator of value in an insurance companyFelix Schlumpf
Insurance companies generally recognise the importance of separating the responsibilities for managing their insurance businesses from managing the investments backing their reserves and capital. Due to the scale of investments in an insurance company’s balance sheet and the impact of investment results on its profitability, the management of these investments is a key function in an insurance company that can create significant value for the company’s policyholders and shareholders. To accomplish this value creation, Investment Management at Zurich uses a systematic and structured investment process focusing on the value drivers that matter most.
The document discusses Zurich Financial Services' investment management strategy. It notes that a clear mission and disciplined approach have allowed them to create long-term value while managing risks and using capital efficiently. Their framework has also helped them deal with challenges like low yields and debt crises. Analysis shows their ALM-focused strategy achieves consistent excess returns relative to liabilities and peers, positioning them well for market uncertainties. Their mission provides clear focus to steer the portfolio through turbulent times.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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BONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
Swiss Re - EVM - slides 2006
1. ab
Economic Value Management (EVM)
Teach-in
31 March 2008
ab
Today’s agenda
Welcome and introduction Susan Holliday
EVM methodology
EVM figures
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 2
2. ab
Today’s agenda
Welcome and introduction
EVM methodology George Quinn
EVM figures
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 3
EVM methodology
ab
Economic steering at Swiss Re
Economic Value Management (EVM) is Swiss Re’s integrated economic
measurement and steering framework used for planning, pricing, reserving
and managing the business
Consistency throughout the
Target performance cycle:
setting
Strategy Planning Target setting/planning/
pricing/reserving
All measurements used Capital allocation/capital
throughout the performance budgeting
cycle are based on EVM
methodology Performance
Performance measurement/
Pricing compensation
measurement
EVM Teach-in Tracking
31 March 2008 renewals
Slide 4
3. EVM methodology
EVM results are meant to respond
ab
to three basic questions:
Are our underwriting activities creating economic value on a stand-
alone basis?
Are our investment activities creating economic value after risk
adjustments?
Can we assess different underwriting and investment opportunities on
a like for like basis?
EVM profit is the common measure of economic value creation that
guides steering decisions
EVM Teach-in
31 March 2008
Slide 5
EVM methodology
To answer these three questions,
ab
the EVM framework…
Splits performance of fund raising activities (underwriting) and fund
investment activities (asset management)
Recognises all profits on new business at inception, changes in
estimates as they occur, and excludes future new business
Values assets and liabilities on a market consistent basis
Reflects best estimates
Measures performance after capital costs (i.e. cost to shareholders of
taking risk)
EVM Teach-in
31 March 2008 The following slides illustrate how these
Slide 6 principles apply in EVM ...
4. EVM methodology
Separation of underwriting and
ab
investment activities
Separation of
underwriting and Splits performance of fund raising activities (underwriting) and fund
investment investment activities (asset management)
activities in line
with basic financial Overall economic
economics balance sheet
principles
Economic
Market liabilities
value
assets
Economic
Asset management net worth Underwriting
balance sheet balance sheet
Replicating Replicating Economic
Market portfolio Asset management pays portfolio liabilities
value underwriting risk-free
assets returns for the funds that
Economic are raised
net worth
EVM Teach-in
31 March 2008 - Investment decisions - Underwriting decisions
- Management of
Slide 7 existing business
EVM methodology
ab
Replicating reinsurance liabilities
Replicating portfolios Expenses, taxes, and Underlying business cash
frictional costs flows
The replicating portfolio provides the
cash flows needed to meet expected
future payments
Cash flow years 1 2 3 4 5
The choice of replicating instruments Discount
depends on the financial market risk back at risk
exposure embedded in the liabilities free rate
A simple example: Discounted economic cash flows
Expected mortality claims payments (equals market value of replicating portfolio)
in 5 years can be replicated by a 5
year zero-coupon bond with the
same maturity and payout
Net Economic
The market value of the bond today replicating = value of
equals the economic value of the
EVM Teach-in portfolio liabilities
expected claims payments
31 March 2008
Slide 8 Market value of replicating portfolio = Economic value of liabilities
5. EVM methodology
ab
Measurement of underwriting activities
A standard replication example (I/III)
Example Recognises all profits on new business at inception
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Premium
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 9
EVM methodology
ab
Measurement of underwriting activities
A standard replication example (II/III)
Example Measurement is based on market prices and best estimates
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Premium
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 10 Transfer price of funds (TPF) = risk free rates at inception
6. EVM methodology
ab
Measurement of underwriting activities
A standard replication example (III/III)
Example Measures performance after capital costs (includes a projection of capital costs)
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Capital costs
Premium -90
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 11
EVM methodology
ab
Measurement of underwriting activities
Insufficient premium income
Example A contract that generates an EVM loss at inception should be declined
EVM calculation EUR thousands Inception Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
for a Continental
European
Premiums
proportional
motor contract at Claims
inception Expenses
Taxes
New
business loss Capital costs
at day 1 Future exp.
cash flows 1 870 -443 -482 -410 -349 -278 -214 -45
EVM loss: -60
4%
4.25%
Premium Production 4.5%
received at cost 4.75%
inception -1 930 4.9%
1 870
EVM Teach-in 4.9%
31 March 2008 5.1%
Slide 12
7. EVM methodology
ab
Illustration
Did underwriting activities generate economic profit?
CHF thousands
New business profit after capital costs 300
PV of premiums 2 600
PV of claims -1 840
PV of commissions -110 EVM value of new business
PV of expenses -110
PV of taxes -150
PV of capital costs -90
Previous business profit after capital costs 59
Change in premiums 60
Change in claims 20
Change in EVM value of
Change in commissions -5
Change in expenses -4
previous years business
Change in taxes -8
Change in capital costs -4
Total profit 359 Release of capital costs and
Release of capital costs 100 risk-free return on
shareholders’ funds
Income before capital costs 459
EVM Teach-in
EVM profit is defined as total return generated for shareholders after
31 March 2008 allowing for capital costs. An EVM profit of zero means that all production
Slide 13
costs including the cost of capital are covered
EVM methodology
ab
Measurement of underwriting activities
Focus on profit recognition in EVM
EVM B/S TPF at T0 EVM recognises all profits at inception based on the present value
of all future expected cash flows
Market
value of Economic
repl. liabilities
Subsequent experience variances are recognised as previous years
portfolio development
EVM previous years results are calculated as the present value of
An upward shift of the yield
curve has a symmetrical the difference between previous and revised cash flow estimates
impact on both sides of the
underwriting balance
sheet:
Total EVM profit is the sum of new business and previous years
profit
EVM B/S TPF at T1
Market Changes in interest rates do not affect the underwriting result on
value of Economic
repl. liabilities the in-force book, as the projected cash flows are matched by the
portfolio risk free replicating portfolio
EVM Teach-in
31 March 2008
Slide 14
8. EVM methodology
ab
Investment performance in EVM
Interest rates affect EVM Overall economic
investment results only if balance sheet
the actual investment
portfolio does not fully Economic
Market liabilities
match the replicating
value
portfolio and economic net assets
worth Economic
Asset management net worth Underwriting
In case of a full asset balance sheet balance sheet
liability match, changes in
interest rates have Replicating Replicating Economic
Market portfolio portfolio liabilities
symmetrical effects on both value
sides of the balance sheet assets
Economic
no change in economic net worth
net worth
The EVM investment result depends on the actual investment mix compared with the benchmark
EVM Teach-in
portfolio
31 March 2008
Slide 15
EVM methodology
ab
Investment activities
Performance calculation in EVM
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before capital costs after capital
investment costs costs
return
Benchmark return
EVM Teach-in (return on minimum
31 March 2008
risk portfolio)
Slide 16
9. EVM methodology
ab
Example 1
Full ALM match and interest rates go down
Assumption: Actual investment portfolio (consisting of risk-free
bonds) matches benchmark in terms of currency structure and
duration
Scenario: Parallel decrease of global interest rates of 100bps
Balance sheet is largely immunised against changes in interest
rates
CHF bn
4.0 -4.0 0 0 0 0
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
EVM Teach-in return
31 March 2008
Slide 17
EVM methodology
ab
Example 2
Long duration position and interest rates go down
Assumption: Actual investment portfolio (consisting of risk free
bonds) has a longer duration than the benchmark. The balance
sheet is exposed to interest rate risk
Scenario: Parallel decrease of global interest rates of 100bps
Swiss Re’s actual investment portfolio outperforms the benchmark
CHF bn
-4.0 -0.2
5.0 0.8 -0.1 0.7
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
EVM Teach-in return
31 March 2008
Slide 18
10. EVM methodology
ab
Example 3
Investment in corporate bonds and spreads widen
Assumption: Actual investment portfolio (consisting US AAA-rated
corporate bonds) underperforms the benchmark (credit spreads
widen). The balance sheet is exposed to credit risk
Scenario: Total return of corporate bond portfolio: 1.3%
CHF bn
1.8
-4.0 0.3
-1.9 -0.2 -2.1
EVM Teach-in
Mark-to- Cost of Tax credit, fx, EVM income Capital EVM loss
31 March 2008 market funds expenses before costs after capital
Slide 19
investment capital costs costs
return
EVM methodology
ab
Example 4
Assets partially invested in equities
Assumption: Actual investment portfolio consists of 8% equities
(S&P 500 index) and 92% risk-free bonds. The balance sheet is
exposed to equity risk
Scenario: S&P 500 annual total index return: 15.8%
Swiss Re’s actual investment portfolio outperforms the benchmark
CHF bn
-4.0 -0.4
5.4 1.0 -0.5 0.5
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before capital costs after capital
investment costs costs
EVM Teach-in return
31 March 2008
Slide 20
11. EVM methodology
ab
Capital costs in EVM
EVM capital costs consist of:
1. Risk free return on capital representing
shareholders base cost of capital
2. Market risk premium (MRP) representing
the shareholders’ expected excess returns
on market risk exposure, applicable to all
business activities that generate systematic Total required
market risk return on capital
3. Frictional capital costs (FCC) representing
shareholders required compensation for
agency costs, cost of potential financial
distress and regulatory/illiquidity costs
EVM Teach-in
31 March 2008
Slide 21
EVM methodology
ab
EVM and market consistent embedded
value (MCEV) have significant commonalities
EV EVM MCEV
Market consistent ✘ ✔ ✔
Separate presentation of assets and
liabilities ✘ ✔ ✘
Explicit charges for capital costs and
credit risk ✘ ✔ ✔
Applicable to all products ✘ ✔ ✔
EVM Teach-in
31 March 2008
Slide 22
12. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures George Quinn
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 23
EVM figures
ab
EVM 2006 income statement by business unit
Property & Life & Financial Group
CHF m Casualty Health Markets items Total
Profit
New business profit 1 695 391 995 -71 3 010
Previous years business profit 137 328 0 225 690
Total profit after capital costs 1 832 719 995 154 3 700
Release of capital costs 1 578 1 007 857 99 3 541
Income before capital costs 3 410 1 726 1 852 253 7 241
EVM 2006 is unaudited
The EVM production process is not subject to the same control environment as annual
EVM Teach-in
and quarterly US GAAP reporting
31 March 2008
Slide 24
13. EVM figures
ab
Drivers of 2006 EVM results
Property & Casualty
– New business profit CHF 1 695m, driven by low natural catastrophe losses and
improving pricing, terms and conditions
– Previous years business profit CHF 137m, reflecting moderate net positive claims
development
Life & Health
– New business profit CHF 391m, driven by GE Life UK transaction and improved
margins on traditional
– Previous years business profit of CHF 328m reflecting positive experience variances
and claims projections due to favourable mortality and morbidity developments
Financial Markets
– Total EVM profit CHF 995m, driven by strong returns in fixed income, equities and
alternative investments
Group items
– Total EVM profit CHF 154m, mainly driven by favourable pension fund performance
and improved diversification leading to lower frictional capital costs
Insurance Solutions
EVM Teach-in
31 March 2008 – The Insurance Solutions acquisition was accounted for as a 2006 balance sheet
transaction that added CHF 1.9bn to economic net worth
Slide 25
EVM figures
ab
EVM 2006 investment result
EVM 2006 investment result of Financial Markets
CHF bn
-4.0 -0.4
6.2 1.8 -0.8 1.0
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
return
EVM Teach-in
31 March 2008
Slide 26
14. EVM figures
ab
2006 Group economic net worth
Group economic net worth (ENW) is the difference between the
Overall economic market value of assets and the economic value of liabilities
balance sheet
ENW is the EVM estimate of shareholders’ funds
Economic
Market liabilities At 31 December 2006, ENW was CHF 39.2 billion
value
assets
Economic
net worth CHF bn
39.2
30.9
EVM Teach-in US GAAP shareholders' equity EVM economic net worth
31 March 2008
Slide 27
EVM figures
ab
EVM 2006 capital by business unit
Property & Life & Financial Group
CHF m Casualty Health Markets items Total
EVM capital (average) 18 104 12 183 4 381 219 34 887
EVM capital is the measure of capital that is required to support the
business
EVM capital is projected until the business runs off, and serves as
the basis for the allocation of capital costs
EVM capital takes internal risk, regulatory and rating agency capital
requirements into consideration
EVM Teach-in
31 March 2008
Slide 28 Figures reflect the new reporting structure introduced for 2007 GAAP reporting
15. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM George Quinn
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 29
From Embedded Value to EVM
ab
EV to EVM – different presentation & terminology
EV EV - alternative presentation EVM
Assets Embedded
Value Economic
Marked to backing Statutory
liabilities liabilities
market statutory liabilities Market Market
liabilities value value
EV required CoC assets Embedded assets Economic
Market capital Value net worth
value Excess NW Embedded
Value
VIF
Consider these Re-present
components separately
Embedded
Statutory Value
liabilities liabilities
Net these components
EVM Teach-in VIF off against each other
31 March 2008 CoC
Slide 30
16. From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (I/III)
Swiss Re’s Life & Health portfolio under EV and EVM is compared below (values as at 31 December
2006)
Step 1: Re-present EV results in EVM format (per before)
No change in value from this step
EV EV - alternative presentation
Assets Embedded
backing Statutory Value
Marked- statutory liabilities Market liabilities
to-market liabilities value
assets Embedded
EV required CoC CHF 22.6bn
capital Value
Excess NW Embedded
Value
VIF CHF 22.6bn
EVM Teach-in
31 March 2008
Slide 31
From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (II/III)
Step 2: Adjust assets and capital allocated under EV to be consistent with the allocation of assets
and capital to the insurance operation under EVM (= replicating portfolio + EVM capital)
This step only represents a change in notionally allocated assets, i.e. no “real” value
created/destroyed in this step
EV (EV asset allocation) EV ’ (EVM asset allocation)
Embedded Embedded
Market Value
Value
Market value liabilities
liabilities
value assets
assets (EVM basis) Adj Embedded
Value CHF 12.2bn
(EV basis) Embedded
Value CHF 22.6bn
EVM Teach-in
31 March 2008
Change in notional asset allocation
Slide 32
17. From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (III/III)
Step 3: Remaining measurement differences reflect the aggregate impact of the different EV &
EVM methodologies across the total Life & Health portfolio (as at 31 December 2006)
EV ’ (EVM asset allocation) EVM
Embedded
Economic
Market Value Market liabilities
value liabilities value
assets assets
Adj Embedded Allocated
(EVM basis) (EVM basis)
Value CHF 12.2bn economic
CHF 12.2bn
net worth 1)
Although the overall adjusted EV and EVM are similar, there may be substantial differences between
sublines and territories
EVM Teach-in
31 March 2008
Slide 33 1) Equal to L&H EVM capital
From Embedded Value to EVM
ab
Life & Health EV to EVM – 2006 earnings
New business profit 2006 (CHF m) EV EVM
is higher under EV New business profit 664 478
due to projection of
Previous business profit
investment income
Operating assumption changes 409 377
on higher yielding
assets Experience variances -35 -40
Profit after capital costs 1 038 815
Expected return on in-force 1 116
Expected return on ANW 336
Investment variances -35
Economic assumption changes -88
EVM capital costs 995
Corporate centre expense allocations in EVM but not EV -84
EV earnings/EVM income before capital costs 2 367 1 726
EVM Teach-in
31 March 2008 Main differences are capital allocation, capital costs, and assumed
Slide 34
investment returns (details see appendix)
18. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM
Summary George Quinn
Questions & answers
EVM Teach-in
31 March 2008
Slide 35
Summary
ab
Summary and outlook
EVM is Swiss Re’s internal economic framework for performance
measurement and steering
EVM allows comparison of performance across all lines of business
EVM framework:
– Splits performance of investment and underwriting activities
– Recognises all closed book profits at inception (excludes franchise
value)
– Values all assets and liabilities in a market consistent way
– Reflects current best estimates
– Measures performance after allowing for capital costs
2006 Group economic net worth CHF 39.2 billion, 2006 EVM
income before capital costs CHF 7.2 billion, EVM profit after capital
costs CHF 3.7 billion
EVM Teach-in
31 March 2008 2007 EVM figures will be disclosed with Q1 2008 results on
Slide 36 6 May 2008
19. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM
Summary
Questions & answers George Quinn/John Baxter
EVM Teach-in
31 March 2008
Slide 37
ab
Appendix
EVM Teach-in
31 March 2008
Slide 38
20. EVM methodology
ab
EVM definition of new business
General principle
EVM recognises all expected cash flows from contractual obligations at inception.
Deferral and fund methods of accounting are not used. In any calendar year, new
business is defined as business with an inception date within the calendar year
P&C
Insurance or reinsurance contracts written or renewed within the calendar year are
recognised as new business. This also applies to multi-year transactions. Future
renewals are not included in the valuation
Life & Health
New business includes: new individual business cessions in the year, renewals of
existing group schemes, increments to existing group schemes, new group
schemes, new blocks of Admin Re business and new cessions in the year on any
Admin Re blocks still open to new business, and renewals of business that is
subject to active annual renewal
EVM Teach-in Financial Markets
31 March 2008
All investment and trading activities are marked-to-market and recognised as new
Slide 39 business
EVM figures
ab
US GAAP vs. economic balance sheet
Group GAAP balance sheet Group economic balance sheet
Business
Investment liabilities
assets Investment
Business
Value assets
liabilities
above B/S
Other
Business liabilities
assets
GAAP equity
Other assets Business
Other liabilities
assets
ENW
Other assets
EVM Teach-in
31 March 2008
Slide 40
21. EVM figures
ab
EVM discount rates
The risk-free discount rates that are used to value insurance
contracts are called transfer price of funds (TPF) rates
TPF rates are based on Libor swap spot rates, reported for 25
currencies and 50 years on a monthly basis
A charge is deducted from Libor swap spot rates for all currencies
and durations, to reflect credit risk in Libor swap markets
EVM Teach-in
31 March 2008
Slide 41
From Embedded Value to EVM
ab
EV & EVM
Balance sheet item EV EVM
Assets Investment assets covering Marked-to-market allowance as Market value
statutory liabilities part of VIF-calculation
Investment assets covering net Market value Market value
worth
Premiums and fees receivable Discounted at risk discount rate Discounted at risk free rate
(RDR)
Retrocession assets Discounted at RDR (allowance Discounted at risk free rate,
for credit risk implied in RDR) with explicit allowance for
counterparty credit risk (CDS
spreads)
Liabilities Claims and benefits payable Discounted at RDR Discounted at risk free rate
Future maintenance expenses Discounted at RDR Discounted at risk free rate
Future tax payments Discounted at RDR Discounted at risk free rate
Options and guarantees Stochastic models Stochastic models
EVM Teach-in
31 March 2008
Slide 42
22. From Embedded Value to EVM
ab
EV & EVM
Balance sheet item EV EVM
Capital cost Financial market risk premiums Implied in RDR Explicit market risk premiums
charges reflecting financial market risk
Risk capital costs Implied in RDR Explicit charge of 4% on ENW
Costs associated with PV of spread between RDR and for frictions related to the cost
conservatism in regulatory investment yield on assets of financial distress, agency
reserves supporting margins in costs and liquidity costs from
regulatory reserves regulatory requirements
Cost of holding additional PV of spread between RDR and
capital required to meet investment yield on assets
regulatory/rating agency supporting required capital
requirements
Tax on Allowed for implicitly The tax on the investment
investment income on economic net worth
income on is an explicit charge in the EVM
capital profit calculation.
Embedded value Shareholders funds (Net Worth) Required capital less Cost of Group economic net worth is
(EV) or economic Capital plus valuation market value of assets less
EVM Teach-in
net worth (EVM)
31 March 2008 differences between regulatory market value of liabilities and
and EV values (VIF) plus surplus capital cost provisions
Slide 43 capital in L&H entities
From Embedded Value to EVM
ab
EV & EVM – comparison of terminology used
Key measures EV EVM
Return-on-capital Internal rate of return (IRR) Economic return on capital
(EROC) = EVM net income /
economic net worth
Shareholder net worth Embedded Value (EV) Economic net worth
Value added by new Value added by new business EVM profit on new business
business
Value added by inforce Operating assumption changes EVM profit on previous years’
business business
Experience variances
EVM Teach-in
31 March 2008
Slide 44
23. ab
Corporate calendar & contacts
Corporate calendar
18 April 2008 144th Ordinary Annual General Meeting (Zurich)
06 May 2008 First Quarter 2008 Results and 2007 EVM (Conf. Call)
05 August 2008 Second Quarter 2008 Results (Conference Call)
08 September 2008 Investors’ meeting (Monte Carlo)
25 September 2008 Investors’ day (Zurich)
06 November 2008 Third Quarter 2008 Results (Conference Call)
Investor Relations contact
Hotline +41 43 285 4444
Susan Holliday +44 20 7933 3890
Andreas Leu +41 43 285 5603
Marc Habermacher +41 43 285 2637
Chris Menth +41 43 285 3878
EVM Teach-in
31 March 2008 E-mail Investor_Relations@swissre.com
Slide 45
Cautionary note on
ab
forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on
certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements typically are identified by
words or phrases such as "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar
expressions or by future or conditional verbs such as "will", "should", "would" and "could". These forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause Swiss Re's actual results, performance, achievements or prospects to be materially different from any future results,
performance, achievements or prospects expressed or implied by such statements. Such factors include, among others:
changes in global economic conditions and the risk of a global economic mortality and morbidity experience;
downturn; policy renewal and lapse rates;
direct and indirect impact of continuing deterioration in the credit markets, and changes in rating agency policies or practices;
further adverse rating actions by credit rating agencies in respect of structured
the lowering or loss of one of the financial or claims-paying ratings of one or
credit products or other credit-related exposures and of monoline insurance
more of our subsidiaries;
companies;
political risks in the countries in which we operate or in which we insure risks;
the occurrence of other unanticipated market developments or trends;
extraordinary events affecting our clients and other counterparties, such as
the ability to maintain sufficient liquidity and access to capital markets;
bankruptcies, liquidations and other credit-related events;
the cyclicality of the reinsurance industry;
risks associated with implementing our business strategies;
uncertainties in estimating reserves;
the impact of current, pending and future legislation, regulation and regulatory
the effect of market conditions, including the global equity and credit markets, and legal actions;
and the level and volatility of equity prices, interest rates, currency values and
the impact of significant investments, acquisitions or dispositions, and any
other market indices ;
delays, unexpected costs or other issues experienced in connection with any
expected changes in our investment results as a result of the changed such transactions, including, in the case of acquisitions, issues arising in
composition of our investment assets or changes in our investment policy; connection with integrating acquired operations;
the frequency, severity and development of insured claim events; changing levels of competition; and
acts of terrorism and acts of war; operational factors, including the efficacy of risk management and other
internal procedures in managing the foregoing risks.
EVM Teach-in not exhaustive. We operate in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance
These factors are
on forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future
31 March 2008
events or otherwise.
Slide 46