Proprietary/Confidential

MovingGovernance,RiskManagementandCompliancefromaCosttoaStrategicBenefit

Presenters

2

KevinMalickiDirectorofProductManagement,HarlandClarke

SamAbadirDirectorofProductAlliances,LockPath®

WhatYouWillLearn

● Howfinancialinstitutionsrealizedifferenttypesofriskandhowtheyaddresstheirrisk

● Howfinancialinstitutionsmanageseeminglydisparatedatatobettermanagedifferent

typesofrisk

● Howcomplianceandriskneedstobemessageddifferentlyacrosstheorganization

● Howefficientandeffectivegovernance,complianceandriskmanagementmoves

beyond‘checkingthebox’toprovidingcompetitiveadvantage

> > >ITRiskManagement

asaCompetitiveAdvantage

Casestudyatalargebank

DisparateDataThroughouttheBusiness

VulnerabilityScanner

ThreatFeed

Tactical&StrategicActivities

BusinessPriorities

PollQuestion- ITRiskManagementMaturity

6

• Notmanaged• Nottiedtorisk

• Attemptatsimilarmanagement• Oneormanyscanningtools,allmanagedindividuallyinthetool• Noinformationabouttheassets

• Assetsclassifiedandgrouped• Metrics/SLAsdefinedandmanaged• Manualassessments• Manualprocess• Limitedscaleduetohighcost• Vulnerabilityassessmentsmanagedindividually

AdHoc Considered Defined

• Assetstiedtocomplianceandinternalcontrols• Assessmenttoolsused• Workflowusedforcommunication• Standardizedreporting• Automationprovidesforscalability• Standardizedprocess• Automaticdeduplicationofscans• Datadriveworkflowtriagescans

Managed

• ITthreatsandriskstranslatedtooperationalrisks• Agileapproachtoriskmanagement–managementdefinedbyrisklevel• Outsourcedprocesseslinkedtostrategicgoals,risks,andprocessrequirements• BusinessContinuityplansextendedtovendors• Riskreportingandanalytics• Integratedauditmanagement

Optimized

BusinessOperationsSupportedbyTechnology

IT Infrastructure

Operations

Value

OperationalRisks

ITRisks

ITSupportsBusiness

RisktoValue

ThreatstoProcessesPutValueAtRisk

ThreatstoSupportingTechnologyPutValueAtRisk

8

§ CRM System§ Marketing

Systems

§ CRM System§ Account

Management

§ Credit Systems§ CRM Systems

§ Accounting Systems

§ CRM Systems

§ Accounting Systems§ CRM Systems§ Trading Systems

TargetedMarketingNew

AccountCreation

CreditProcessing

AccountFunding

TradingandSettlement

IT Threats• System vulnerabilities• Applicatiaon vulnerabilities• Inadequate security• Data integrity

Operational Threats• Poor execution• Reputation• Expensive compliance• Regulatory

5/11/17

ITandBusinessDataAreInputstoRiskManagement

9

GRC

5/11/17

GRCArchitecture

GRCPlatform ContextualizedActionableInfo

BusinessMetrics

• Incidents• KPIs• OtherBusinessRecords

ITMetrics

• VulnerabilityScanners

• WebAppScanners• ConfigurationScanners

• Syslog• SIEM

GRCPlatform

• RiskRegister• RiskThresholds• Workflow• Reporting• Dashboards

ContextualizedActionableInfo

• StaffReports• ManagementReports

• BoardofDirectorReports

EnterpriseData

ITRiskManagementAcrosstheOrganization

11 5/11/17

OperationalReports

Whichassetsaremostatriskto…

● Vulnerabilityfindings?

● Scannerfindings?● SIEMfindings?● Etc.?

Assetprioritization● WhatdoIfixfirst?

Assetriskhistory

ManagementReports

Averageincidentresponsecost?

Areresourcesdeployedeffectively?

Whatistheaveragepatchlatency?

Areassetsenrichedwithbusinessinformation?

BOD/AuditReports

Howmuchvalueisatrisk?

DoIneedtomakeadditionalinvestmentstomanagerisk?

Arecurrentriskmanagementeffortseffective?

BenefitstoITOrganization

● Movefrom“supportingthebusiness”to“partofthebusiness”

● Fasterandmorefrequentfunding

● BetterITandoperationalriskmanagement

5/11/1712

> > >

13 5/11/17

ComplianceManagementasaCompetitiveAdvantage

Casestudyatafinancialservicesorganization

ComplianceManagement

14

Internal/CustomerAudits

Attestations

ManualReporting

SharePoint

TechnologySecurity

LegalRequirements

CustomerRequirements

PublishedPolicy

IntegratedRisk

IntegratedRequirements

RequirementsUpdates

IntegratedControls

IntegratedIncidents

ContinuousMonitoring

Risk-basedWorkflowReview

EfficientEffective

ComplianceManagement

5/11/17

ProblemsWithManualComplianceManagement

15

Customer

State

Internal

Local

National

5/11/17

TheManualProcessandItsResults

16 5/11/17

PollQuestion- PolicyManagementMaturity

17

• Policiesaddressedonacase-by-casebasis

• Policiestemplatesexist• Policiesnotcomplete,• Dependenceonorganizationalknowledge

• Policieshavebeenstandardized• Policiespartoftrainingprogram• Employeestestedonpolicymatters• Policiesstoredindedicatedshareddrives/sharedspaces

Reactive Controlled Defined

• Policiesaremonitored• Policyeffectivenessmeasured• Policiestiedtoassetsandprocesses• PoliciesstoredandaccessedinGRCtools• AttestationprocessformalizedandinGRCplatform• Policiesmappedtointernalcontrolsandframeworks

Scalable

• Policiesarestrategicallycreatedtominimizecontrolsandremovecontrolrepetition• Policiesreflectstrategicgoalsandriskregister• Policyworkflowskickoffreviewbasedonrisklevels• Policymanagementintegratedwithauditmanagementandincidentmanagement

Optimized

5/11/17

StreamlinePolicyAuditManagement

● HistoryofComplianceDocuments

● CorporateControls

● Incidents

● IncidentRemediation/Acceptance

● RiskManagement

● Technology&SecurityCompliance

18

GRCPlatformManagingComplianceRequirements,

Policies,Incidents,Exceptions,RisksandRelatedTransactions

TypesofData

ComplianceAuditWorkPapers

RelevantEvidence

5/11/17

GRCinAction

19

WorkflowSimplifiesComplexity

AuditImprovement&Simplification

ComplianceSimplification

5/11/17

GRCforCompetitiveAdvantage

20

DecreasedtimespentonCompliance

SavedonpilotprojectIncreasedNumberofZeroFindingAudits

90%>5%

+$500,0000

ProjectManagersmovedtomoney-makingprojects

3

5/11/17

> > >ITVendorRiskManagementas

CompetitiveAdvantage

CaseStudyatafinancialservicesorganization

21

VendorRiskManagementManualProcess

22

+ +

= 30vendors

5/11/17

DemandforVendorRiskManagement

23

IntegraltoSeveralVendorNetworks

IncreasingRegulatoryDemand

5/11/17

PollQuestion- VendorRiskManagementMaturity

24

• Notmanaged• Nottiedtorisk

• Attemptatsimilarmanagement• Random,manualassessments

• Vendorsclassified• Metrics/SLAsdefinedandmanaged• Manualassessments• Manualprocess• Limitedscaleduetohighcost

AdHoc Considered Defined

• Vendorstiedtocomplianceandinternalcontrols• Assessmenttoolsused• Vendorportalsusedforcommunication• Standardizedreporting• Automationprovidesforscalability• Standardizedprocess

Managed

• Vendorriskmanagementisadefinedprincipal• Agileapproachtoriskmanagement–managementdefinedbyrisklevel• Outsourcedprocesseslinkedtostrategicgoals,risks,andprocessrequirements• Vendorduediligencetiedtoprocessrequirements• BCplansextendedtovendors• Riskreportingandanalytics• Fourth-partyriskmanagement

Optimized

GRCinAction

25

WorkflowSimplifiesComplexity

Integrated,dynamicassessments

Dedicatedanalyticsengine

Scalable,robustriskmanagement

5/11/17

Results

26

LimitedStaffandLimitedProcesses

LimitedandRestrictedRiskManagement

SavedandExpandedBusiness

Opportunities

5/11/17

IncreasedProductivity

650%

Effective,EfficientThirdPartyRiskManagement

Summary

● GRCtakesinputsfromacrosstheenterpriseandthirdpartiestoefficientlymanageareas

ofriskandallowthebusinesstofocusonothervaluecreatingactivities

● GRCautomatesmessagingofriskandcompliancedatatostakeholdersacrossthe

organizationinanefficient,effectiveandrisk-specificmanner

● GRCtoolsremovethecomplexityofcomplianceandallowthebusinesstofocusonits

coreobjectives

27 5/11/17

TheGRCSpotlightEcosystem

• Automatebusinessprocesses • Reduceenterpriserisk • Eliminateredundancy

28 5/11/17

GRCSpotlightPlatform

GRCSpotlightAdvantage

29

OperationalRiskManagement

Compliance&PolicyManagement

ITRiskManagement

BusinessContinuityManagement&Planning

AuditManagement

VendorRisk Management

ConfigurableWorkflow

DedicatedAnalyticsEngine

Integrated,Dynamic

Assessments

ConsumerEnterpriseData

andKPIs

5/11/17

Q&AWrapUp

30

Typeyourquestioninthechatpanel

Presentationmaterialsandvideoreplaywillbeprovidedwithinoneweek.harlandclarke.com/LinkedIn

harlandclarke.com/Twitter

www.harlandclarke.com/webcasts

HCGRC-0036-01

KevinMalickiDirectorofProductManagement,HarlandClarke

SamAbadirDirectorofProductAlliances,LockPath®

ThankYou