press and analyst presentation

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www.frsglobal.comCopyright © 2008 FRS Belgium NV ("FRSGlobal").

FRSGlobal TNG Launch: 31st March 2009

Welcome to members of the press and analyst community

Global Webinar

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Welcome and Introduction, Overview of TNG launchRebecca Bond, VP Marketing, FRSGlobal

RiskPro TNG – module overviewand product demonstrationLazhare Djeffal, Domain Expert, FRSGlobal

Technology overviewKieran Leahy, SVP Product

Online questions - throughout the webinar

Close, exit - press release

Webinar agenda – 1 hour duration

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Founded in 1989, owned by The Carlyle Group and Kennet Partners (since 2006)

400 employees - 20 offices – 5 regions Americas, APJ, Europe, UK & Ireland, Middle East

1500 companies use FRSGlobal solutions- 41 of top 50 banks -

TNG = “Unified risk management and regulatory reporting platform” Unique ‘contract’-centric design for risk profitability and analysis to

overcome silo risk management Only provider of guaranteed coverage for regulatory reporting in over 30

countries

: guarantees compliance

FRSGlobal today: www.frsglobal.com

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Partners & Alliances

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Just a sample of clients from around the world …

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August 2008 - acquired IRIS integrated risk management To incorporate risk management into the existing solution In recognition of increasing demand to integrate risk with regulatory

reporting

December 2008 – acquired Secam+ To become largest supplier of regulatory solutions to Security

Houses as well as our existing banking portfolio

Spent last 8 months: Completing re-development of riskpro (V2.6) onto new platform Extending DataFoundation to include risk data Completing the integration of the risk and reg products

31st March 2009: Launching TNG: The Next Generation

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The Next Generation =

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RiskPro TNG

Risk management system: non silo! X-risk type

• All risk types: ALM, Liquidity, Market, Credit, Basel II, IFRS/IAS, Solvency II, FTP, Economic Capital

X-asset• All contract types: fixed income,

equity, etc Enterprise-wide

• All departments: Treasury, desk etc

How do we achieve this?

1. TNG: new product

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Contract-centric and event-based analysis

Any financial analysis is a combination of: Liquidity Value Income Sensitivity Risk

Market data

Financial eventse1 e2 e3 en… Time

Counter-party data

Behaviour

Contracts

Income

Liquidity

L@R1) E@R2) V@R3)

Sensitivity

Value

Risk1) Liquidity at risk 2) Earnings at risk 3) Value at risk

RiskPro TNG / contract-centric design

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RiskPro TNG / Asset & Liability Management (ALM)

P&L

Assets

t

0

Time

Liabilities

t

0 ...

Yield curve t1 Yield curve t2

Time to MaturityYield curve t0

Yield

Spread

Advanced gap, exposure analytics

Deterministic and probabilistic analytics

Dynamic balance sheet modelling Strategy elements Behaviour

elements

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RiskPro TNG / Liquidity risk

Funding liquidity

Ma

rke

t liq

uid

ity

Funding Behaviour Stickyness Strategies …

Market liquidity Spreads,

Liquidity Sales, Repo’s …

Survival period

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RiskPro TNG / Market risk

Flexibility in methodology

Decomposition by risk category

Full flexibility in respect to holding period and confidence level

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RiskPro TNG / Credit risk

Credit exposure / PFE

Credit loss and loss distributions

Credit VaR Flexibility in

methodology Measuring shortfall risk

Risk aggregation / Economic capital

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RiskPro TNG / Solvency II

Standard and advanced approach covered

High flexibility in replication models for the insurance risk

Insurance risk based on contract centric approach for Life and Non-Life

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STANDARD RE-USABLE COMPONENTS:

Any relational database Any thin client: Web 2.0 Multi-tier J2EE architecture Any OLAP reporting tool

TNG PERFORMANCE Major performance improvement

(x10 ++) Grid-enabled CalculationEngine

(multi-core optimized)

2. TNG: technology platform

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OLAP Cube and dashboard(s)

OLAP Cube

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Dashboard - BusinessObjects

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Lazhare Djeffal - Domain Expert

Demonstration: RiskPro TNG, Liquidity risk

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NEW set of solutions from FRSGlobal that meet the: NEW demands of the financial services industry driven by the NEW regulations and the NEW owners of the firms (governments)

FRSGlobal unified risk and regulatoryplatform/solution All types of risk All country regulations (30+) Risk and Reg = combined! Internal and external reporting

= from the same data source (DataFoundation)!

3. TNG: solution set

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Example of risk and regulatory combined

http://www.frsglobal.com/products/liquidity_solution.html

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Unified risk and regulatory platform: FRSGlobal DataFoundation - “single version of the truth”

• Validated regulatory data +• Risk calculated data

CalculationEngine• Shared between risk and reg

RiskPro and RegPro• Risk management and regulatory

reporting (inc stress testing)

Guarantee• Keep regulatory reports up to date

Centre of Risk & RegulatoryExcellence

The Next Generation of solution

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