PRMIA Toronto Chapter Event The ALPHA and BETA of Corporate Governance and Risk Oversight

1. PRMIA Toronto Chapter EventThe ALPHA and BETA of Corporate Governance and Risk Oversight Tuesday, March 8, 2011 Alex Todd TEResearch A division of Trust Enablement Inc.

2. Understanding Systemic Risk

3. Risk Management & Systemic Risk

4. Risk Management in a Complex World Risk Management Innovation

5. Trust Enablementfor Risk Management 2.0

6. Strategic Corporate Governance

7. Corporate Governance ALPHA

8. Aspirational Corporate Governance

9. Extra Slides

10. What does the world look like?

11. Business Case Society Customers Investors Regulators

12. Risks & Uncertainties Risk Uncertainty Reward Possibility

13. Risk-Reward & Uncertainty-Possibility Risk Reward Profiteering High profit margins Economic bubble • Tactical Risk • Price gouging • Strategic Risk • Premium brand • Systemic Risk • Externalizing risk Uncertainty Possibility • Tactical Uncertainty • New market • Strategic Uncertainty • New offering • Systemic Uncertainty • New business model • Revenue growth • Competitive advantage • New value

14. Trust = Acceptable Uncertainty Trust Definitions Trust is a person's willingness to accept and/or increase their vulnerability by relying on implicit or explicit information.

15. Certainty Acceptability Develop Trust Protect Trust Interpretive Sources of Trust Subjective assertions of the source of the information or third parties. Empowerment Relying party’s ability to choose. Trust Enablement®Framework Experiential Sources of Trust Personal experiences of the relying party or those of objective witnesses. Motive Forces Factors influencing the actions of the beneficiary (trusted party). Risk Management 2.0 Risk Management Proficiencies Aptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology). Risk Transference Mechanisms and processes that transfer risk away from the relying party.

16. A Management Innovation Trust Enablement® is both a management philosophy and a technology for business best practices. It fills a business practices void by counterbalancing risk management based control mechanisms that preserve trust, with those that develop trust, and thereby provides a complementary, foundational, new management competency. It serves to fundamentally change the leadership mindset from an inside-out to an outside-in orientation.

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

18. Systemic Risk of Nations

19. Agenda • GRC & Systemic Risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

20. Governance Risk & Compliance Drives Principled Performance™ by enhancing corporate culture and integrating governance, risk management, and compliance processes. • Governance • set and evaluate performance against objectives • power to authorize a business strategy and model to achieve objectives • Culture • establish an organizational climate and mind-sets of individuals that promote ethical behavior, trust, integrity and accountability • Risk Management • proactively identify and rigorously assess and address potential obstacles to achieving objectives • identify and address risks that the organization will step outside of mandated and voluntary boundaries • Compliance • proactively encourage and require compliance with established policies and • detect noncompliance and respond accordingly

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

22. Objectives “Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed” - OCEG

23. Objectives

24. Systemic Risk

25. Agenda • GRC & Systemic Risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

26. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

27. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

29. TrustEnablement.com

30. Offerings

31. Public Policy & Economic Development

32. Corporate Governance & Investment

33. Policy & Strategy

34. Risk Management

35. Information Technology & Security

36. Online Transactions & Web 2.0

37. Organizational Development & Change Management

38. Leadership, Collaboration & Innovation

39. Marketing & Sales

40. Supply Chain Management

41. Other Initiatives

42. Agenda • GRC & Systemic risk • Risk-Reward & Uncertainty-Opportunity • Trust Enablement & Risk Management 2.0 • Applications • Opportunities

43. Opportunity

44. How are we the cause in the matter? Alex Todd Trust Enabling Strategies AlexTodd@TrustEnablment.com