The document discusses enterprise risk and finance solutions from Oracle. It defines enterprise risk and finance as integrating traditional accounting, financial management, risk management, compliance, and reporting on a common decision-making platform. It then describes four sales plays within enterprise risk and finance: finance modernization, risk adjusted performance management, enterprise risk and capital adequacy, and agile financial services analytics. Finally, it provides an example customer implementation for the finance modernization sales play.

1. Enterprise Risk & Finance
Industry Solution
Stuart Houston
Vice President, Financial Services
Version 4 Industry Business Unit
© 2011 Oracle Corporation – Proprietary and Confidential

2. Enterprise Risk and Finance
Definition
The integration of traditional accounting and
financial management, financial performance and
control, risk management and compliance and
reporting functions on a common decisioning
platform.
© 2011 Oracle Corporation – Proprietary and Confidential

3. FSI Solutions – Enterprise Risk & Finance
Sales Plays
Enterprise Risk and Finance
(Solution Set)
Finance Modernization Risk Adjusted Performance Enterprise Risk & Capital Agile Financial Services
(Sales Play) Management Adequacy Analytics
(Sales Play) (Sales Play) (FS Data Management
• Operational Finance Sales Play)
• Performance Mgt • Profitability & Performance • Liquidity/Basel III & IRR
• Integrated ERP & Analytics Management • Capital Adequacy - Basel II, • Data Warehouse
• Planning & Forecasting (incl. Economic Capital • Banking Analytics
B/S) • Operational Risk Transformation
EPM EPM
GBU Tech EPM
ERP Tech
ERP GBU
APPS GBU GBU

4. Financial Services IBU Solution Sets
Solution Enterprise Risk and Finance
Set
Enterprise Risk
and Finance
Risk Adjusted Enterprise Risk Agile Financial
Plays
Sales
Finance
Performance & Capital Services
Modernization
Mgmt Adequacy Analytics
Basel III -
Accounting Profitability Finance & Risk
Capital
Modernization Management Data Warehouse
Adequacy
Points
Entry
World Class
Financial Close Risk Adjusted Liquidity Risk
Business
& Reporting Performance Management
Intelligence
IFRS Planning and Interest Rate
Compliance Strategy Risk
in FS Optimization Management
Financial Crimes
& Compliance

5. Focus Area
Finance Modernization
Delivering
Visibility, Efficiency
and Control to the • Accounting Centralization and Compliance
operational finance • General Ledger Consolidation
process in a highly • Financial Close Management
Automated
manner, allowing the • Reporting and Analytical Transparency
Finance • Disclosure Analytics
Organization to • Data Management and Control
Focus on higher
value partnerships
with the business

6. Focus Area
Risk Adjusted Performance Management
Enable Complete and • Multidimensional Profitability
Comprehensive
Insight into • Unit Cost Development
Performance and • Funds Transfer Pricing
Profitability. Deliver • Economic Capital Attribution
key business
measures Enterprise • Management Reporting and Analytics
Wide to make better • Planning and Forecasting
business decisions

7. Focus Area
Enterprise Risk and Capital Adequacy
Enable a Holistic
View of Risk and • Regulatory Capital Compliance
Compliance leading
to Superior Decision • Market, Credit, Operational Risk
making, Unifying • Stress Testing and ICAAP
Risk • Liquidity and Interest Rate Risk
Identification, Quanti
fication, Stress • Risk Reporting and Analytics
Testing and Capital • Financial Crime and Compliance
Planning processes
across the
Enterprise.

8. Enterprise Risk and Finance
Industry Best Practices Architecture
Source Accounting and Finance Intelligence
Transactions
Accounting General Close/Capital Finance
Hub Ledger Mgmt Warehouse
General General Consolidation
Ledger Ledger GL
(THICK) (THIN) Portal
Plan & Procurement
Sub Ledgers
Operational Expenses
Forecast
Data Daily Assets
Accounting
Rules Average Close & Payables
Balance Disclosures
Dashboards, Re
ports, Ad Hoc
Performance and Risk
Data Staging Risk & Results
Performance Area OLAP Analysis
Core and
Trading Account & Enterprise
Systems Customer Performance Performance
Management
Mgmt Ledger
Enterprise
Risk Risk Alerts &
Transactions
Management Exception Based
Management
Technology/Hardware Master Data Mgmt Controls, Governance

9. Financial Services IBU Solution Sets
Enterprise Risk and Finance
Sales Plays Lead Economic Bill of Materials Customers
Pillar Buyer
Finance Apps CFO • ERP (Accounting Hub & GL) • Many for selected components e.g. FAH,
Modernization (ERP) • OFSAA-EPM– PFT / PFT BI GL, HFM
• Hyperion -HFM, C&D Mgt. • Implementing full stack
• OFSAA-ERM (Rec Framework, (OFSAA+eBusiness ERP+EPM) – RBS
Hedge Management) • Implementing Operational Finance) –
• Edge – DRM, OPA, GRC Nomura, Scotiabank
• TIAA CREF – (completing GL, OFSAA and
BI.
Risk Adjusted Apps CFO • OFSAA-EPM – PFT, FTP, PFT BI, • Implementing – NAB (FTP & “Management
Performance (OFSAA) ALM BI, BSP Ledger”)
• OFSAA-ERM – ICAAP Analytics, • Implementing – PNC, TIAA CREF, Fifth
Management Economic Capital and/or Basel II Third, USAA
• EPM – HPCM, Planning, B/S • Live – US Bank
Planning, Hyperion Strategic • Many OFSA 4.5 clients for PA, TP (and to
Finance, Scorecard, DRM, BI a lesser degree RM)
Applications
Enterprise GBU CRO or • OFSAA-ERM, ALM, Credit, • Implementing – PNC (Credit Risk, Basel II)
Risk & Capital (OFSAA) GM Treasury Operational, Market, Liquidity, • Implementing – JP Morgan (Liquidity Risk),
Basel II,ICAAP ANZ (ALM for Liquidity Risk)
Adequacy
Agile Financial GBU CIO • FSGBU – FSDW / OFSAAI, Rec • Implementing – BNY Mellon
Services (FSDW) Framework, Basel II Analytics • Implementing – RBS
• Apps – PFT BI, ALM BI
Analytics
• EPM – OBIEE, ESSBASE, DRM

10. Oracle Product Mapping
Finance Financial Management
Infrastructure Analytics
Area Financial Financial
Accounting General Planning Financial
Data Model Ledger Management
Hub Analytics
Metadata Disclosure Capital Asset
Management Management Planning
Framework
Workforce Balance
Mart
Planning Sheet
Management
Planning (UI)
Framework
Computations
and Rules
Framework Analytical Applications ALM
Asset Fund Balance Analytics
Profitability
Liability Transfer Sheet
Data Quality Management Manager Planning (CF)
Pricing
Profitability
Advanced Stress
Security and Liquidity Risk Hedge Analytics
Analytical Testing
User Management Management
Infrastructure
Administration
Hedge
Reconciliation Analytics
Oracle Financial Services Analytical Applications Infrastructure Oracle BI EE
Supporting Solutions Date Governance,
Fusion
Relationship Oracle UPK Essbase Risk &
Middleware
Management Compliance
Open Systems Platform - Oracle Database, Exadata and Exalogic
Components are part of the Oracle Financial Services Analytical Applications Infrastructure Product
© 2011 Oracle Corporation – Proprietary and Confidential

11. Oracle Financial Services Analytical Applications
Performance Management and Finance
Profitability Funds Transfer Pricing Consolidation Accounting Hub
Activity-Based Costing Budgeting and Forecasting Reconciliation
Credit Risk Analytical CRM
Retail Credit Risk Pricing Management Portfolio Analytics
Loan Loss Forecasting Performance
Corporate Credit Risk Hedge Management Management Customer Profitability Marketing Analytics
IFRS 9 – IAS 32/39
Treasury Risk RAPM Service Analytics
Market Risk Balance Sheet Planning
Asset Liability Management
Liquidity Risk Stress Testing Channel Insight
Risk Customer Channel Usage
Regulatory Capital Management Insight
Channel Performance
Basel II
Retail Portfolio
Risk Models and Pooling
Stress Testing Know Your Customer
Economic Capital
Economic Capital ICAAP Governance
Advanced (Credit Risk) & Compliance
Operational Risk
Economic Capital
Regulatory Compliance (Financial Crime) Governance and Compliance
Anti-Money Laundering Fraud Detection
Operational Risk
Broker Compliance Trading Compliance
11
© 2011 Oracle Corporation – Proprietary and Confidential

12. Building Blocks
Shared Components across Applications
FINANCIAL SERVICES BUSINESS INTELLIGENCE
Reports Alerts Dashboards Embedded
Unified Analytical Metadata
FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORKS
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL
Pre-Integrated/
Data Common Objects Common Dimensions High Volume
Extensible
Sources
© 2011 Oracle Corporation – Proprietary and Confidential

13. Building Blocks
Shared Components across Applications
PROFITABILITY ASSET|LIABILITY BALANCE SHEET BASEL II CUSTOMER
& FTP PLANNING
MANAGEMENT MANAGEMENT REG CAPITAL INSIGHT
FINANCIAL SERVICES BUSINESS INTELLIGENCE
Reports Alerts Dashboards Embedded
Unified Analytical Metadata
FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORKS
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL
Pre-Integrated/
Data Common Objects Common Dimensions High Volume
Extensible
Sources
© 2011 Oracle Corporation – Proprietary and Confidential

14. Oracle Financial Services Analytical Applications
High Level Process Flow
Staging Area Application-Specific Processing Area Results Area
Common
input area
Analytical Calculations Results for
for
consumption
analytical Cash Flow Engine
apps
Data Model
© 2011 Oracle Corporation – Proprietary and Confidential Slide 14

15. Oracle Financial Services Analytical Applications
High Level Process Flow
Staging Area Application-Specific Processing Area Results Area
Profitability Profitability
Analytics
General
Ledger Funds Transfer Pricing
ALM
Asset Liability Analytics
Products Management
(instruments)
Economic Capital Market Risk
Analytics
Other Liquidity & ICAAP
ICAAP
Basel II Analytics
Common Cash Flow Engine
Infrastructure and Data Model
© 2011 Oracle Corporation – Proprietary and Confidential Slide 15

16. Financial Service Analytics Application Data Model
Staging Processing Data Marts
Instruments
Common Staging Area 15. Mortgage Offsetprocessing
App-specific App-specific result tables
Tables Accounts
Facts Dimensions
ALM MR aCRM ALM MR aCRM
1. Current Accounts 16. Futures Contracts
2. Product
Savings Accounts 17. Options Contracts Basel II
COA FTP CR Profitability Basel II
3. Processors
TD Contracts Product 18. Repo-Contracts
PFT OR GRC CR OR
4.Transactions
OD Credit Lines 19. Fct Swaps
Org Shared ProcessingTables Shared output tables
Accts 20. Forex Contracts
Ledger
5. Loan Contracts Customer 21.T2TBreakLedgerStat
Funding Exposures Account
6. Credit
Exposures Cards 22. Borrowing Summary Tables
Instruments (29)
7. Campaigns
Mortgages 23. Forward Rate
8. Leases Agreement Common Dimensions, Hierarchies, Master Tables
Master Data
9. Mortgage Backed 24. Insurance
COA Org Time Series Data
Securitization
Time Series Data 25. Investment (Rates, Indicators, risk
(Rates, Indicators, risk
10. Bills Contracts
factors etc) 26. Annuity
Product Customer factors etc)
11. LC Contracts tables 27. Trusts
Display Codes/Master
12. Guarantee 28. Retirement
13. Mutual Funds Common Metadata
Accounts
14. Money Market 29. Other Services
Contracts
© 2011 Oracle Corporation – Proprietary and Confidential

17. The Case for Platform and Performance
Liquidity Risk Regulatory Capital Profitability
• New mandates like Basel • Reporting is stressful and • Tighter controls, laws
III are driving need for on- time consuming with little limiting bank fees and
demand answers time for analysis slower revenue growth
driving need for efficiency
• Global events or crises • Performance bottlenecks and cost controls
have near instantaneous leave little margin for
impact error • Need for on-demand view
of costs and profitability –
• Banks need to calculate • Demand for additional move beyond monthly
stressed results in submissions with reporting requirements.
minutes not hours modified assumptions
and calculations • Need for faster and more
• Contingency funding granular review of product
strategies need to be • Demand for advanced performance
iteratively tested in a analytical practices like
practical timeframe stress testing and what-if • Need to quickly response
analyses to market shifts and
changing rates.
Senior executives are left scrambling to bridge key limitations in
• Performance & Scalability
• Responsiveness
• Simulation & What-If Capabilities
© 2011 Oracle Corporation – Proprietary and Confidential Slide 17

18. Extreme Performance in Financial Services
Oracle Profitability Manager to
execute 172 allocation rules
across 250 million accounts
+ 1 billion transactions
Reduction from 48 hrs to 4
hours and 45 minutes.
Oracle Basel II for Regulatory Capital
Calculations on Exadata Database
Machine X2-2 executing Risk-Weighted
Asset Calculations On 65 million
exposures in only 1 hour and 29 minutes
Oracle Liquidity Risk Management on
Exadata Database Machine X2-2 Business-
as-usual liquidity gaps for 370 million cash
flows 65 million accounts in just 69 minutes.
Stressed liquidity gaps in only 10 minutes.
© 2011 Oracle Corporation – Proprietary and Confidential Slide 18

19. Customer and Analyst Credentials
Representative Customers (300+ Globally) Industry Recognition
Oracle Basel II Solution in the Leaders’ Quadrant for
2005, 2006
Celent Group ranks Oracle Basel II as the North
American Leader in Basel II
Tower Group regards Oracle OFSAA as a specialized
and well architected platform
Forrester regards Oracle Reveleus as one of the top
”purpose build” GRC applications
Oracle Financial Services Analytics Highly Commended
in The Banker’s 2006 Technology Awards
Financial Insights regards Oracle as one of leading
operational risk vendors
Tower Group regards Reveleus as the “Crown Jewel” of
i-flexsolutions
Chartis Research ranks Oracle OFSAA among the top
10 Ops Risk vendors globally
Celent ranks Oracle OFSAA as one of the top 3 Ops
Risk vendors worldwide
© 2011 Oracle Corporation – Proprietary and Confidential Slide 19

20. Enterprise Risk and Finance
Marquee Wins – FY10 / FY11
• BOM – GBU, Apps • BOM – GBU, Apps • BOM –
(FAH), BI Apps, GBU, EPM, BI, Te
ch
• BOM – Apps, EPM, BI,
Tech
• BOM – GBU, Apps • BOM – GBU
• BOM – GBU, Apps
• BOM – Apps, GBU
© 2011 Oracle Corporation – Proprietary and Confidential Slide 20

21. TIAA CREF
Sales Play – Finance Modernization
COMPANY OVERVIEW SOLUTIONS
a Fortune 100 financial services organization that is • Oracle General Ledger and Financial Acctng
the leading retirement provider for people who work in Hub
the academic, research, medical and culture fields. • Oracle Financial Services Analytical
Headquartered in NYC, TIAA CREF serves 3.7 million Applications (Data
active and retired employees participating at more Model, Profitability, Profitability Analytics)
than 15,000 institutions and has $453 billion in • Oracle Business Intelligence
combines assets under management (as of 12/31/10). • Oracle Planning and Strategic Finance
• Net Income: US$ 1.405 billion (2010)
• Employees: 7,2000 EXPECTED BENEFITS
• Single source of consolidated and detailed
finance and management information
MISSION/OPPORTUNITIES
• Efficient and centralized accounting and
• Reduce complex, redundant and costly processes general ledger
prohibiting timely and efficient financial • Comprehensive best practice engines and
close, detailed management information and intelligence for multi dimensional profitability
reporting analytics
• Provide world class configurable solution(s) to the • Enterprise strength and ease of use business
institution for developing performance metrics with intelligence providing transparency and
the necessary transparency to drivers and results actionable data.
• Investment in technologies that will support • Provide technologies and solutions that can
corporate strategy for growth scale for performance and the expected
aggressive growth of the institution.

22. Swedbank
Customer Profile Business Problems
Activities: Retail Banking
Geography: Regional, •Old Backoffice systems (ATLAS) was being
replaced (Calypso), including Accounting Engine
Nordics Europe
•Old GL could not be immediately
Annual turnover decommissioned (basis for reporting)
~ 1.000 Billion € •New GL Structure/Architecture
•Need for new integrated platform for Accounting
Historically being a group of individual & Analytics
(independent) Savings Banks, the largest ones •Not adequately prepared for future sources of
being merged and listed transaction data
•Straight through processing with clear status
Keeping administration for the rest of Savings
tracking
Banks
Business Requirements Project Info
Feed multiple CoAs Status: Live since June 16th 2008
Implementers: Functional setup: Cap Gemini
Support transition from old to new system (no Project Management: Local Partner
immediate cross-over)
FAH functional: Oracle consulting
Keep separate ledger for separate Savings Banks Technical: Oracle Consulting + Customer
Being able to enter Manual Journals
Centralize and store Accounting rules

23. Nomura Holdings – INTERNAL USE ONLY
Sales Play – Finance Modernization
COMPANY OVERVIEW SOLUTIONS
Nomura Holdings is the parent company of Nomura • Oracle Peoplesoft Financials and Expense
Securities, Japan's leading investment bank and brokerage Management
house. The company performs trading, equity and bond • Hyperion Financial Management
underwriting, research, and mergers and acquisitions • Hyperion Profitability & Cost Management
(M&A) advisory services. It also makes private equity and • Hyperion Financial Data Quality Management
venture capital investments. Nomura's largest segment is • Financial Analytics
domestic retail, which provides investment consulting and • Supporting Oracle Technology
brokerage services to consumers in its home market..
Nomura Holdings has operations in more than 30 countries.
In 2008, Nomura acquired the European and Asian
operations of Lehman Brothers, as part of it’s goal to EXPECTED BENEFITS
become a leading Global Investment Bank Objective of Global Financial Architecture(GFA):
• Assets Under Mgt ¥24.7 trillion(FY 2010) • To build the platform to allow for strategic
• Total assets ¥36,692,990 million (FY 2010) decision making through timely and dynamic
• 35,630 employees reporting to executive level personnel
- Daily, accurate management information
MISSION/OPPORTUNITIES - Allow faster adoption to social and
• Become a world class competitive financial services institutional changes
group • Achieve efficient management and cost
• Create Change to contribute to the development of reduction by consolidating multiple IT assets
capital markets and generate growth opportunities and disparate business processes globally.
• Act as a bridge between Asia including Japan and - Cost reduction by server consolidation
Europe and the United States

24. National Australia Bank – INTERNAL USE ONLY
Information Analytics Platform Transformation
Sales Play – Information management, ERM
COMPANY OVERVIEW SOLUTIONS
National Australia Bank is a financial services • Oracle Financial Services Analytical
organisation with over 40,000 people, operating more Applications (Profitability, FTP, ALM Data
than 1,800 branches globally. NAB operates major Model, Profitability Analytics, Corporate and
financial services franchises in Australia, as well as Retail Credit Risk, Basel II, Basel II Analytics)
businesses in New Zealand, Asia, the United
Kingdom and the United States. Each brand is • Oracle Financial Accounting Hub
uniquely positioned but built on a common • Siebel UCM
commitment to providing quality products and
services, fair fees and charges, and relationships built EXPECTED BENEFITS
on the principles of help, guidance and advice. • Support core banking transformation by
• Net income A$4.58 billion (2010) realigning activity execution
• Total assets A$685 billion (2010)
• Provide support for support for multi-branding
and rapid product manufacture independent
MISSION/OPPORTUNITIES of brand
• Assisting exploitation of NextGen Banking Platform • Establish a holistic perspective across
• Drive cost reduction through Process enterprise service focuses – risk
simplification, Technology simplification,Reduction , finance, operational support
in reconciliation and control effort, Reduction in cost • Reconcile information across the required
of change dimensions
• Enhancing individual business capabilities • Leverage industry maturity and development
• Mine the cross enterprise services opportunities to reduce complexity and speed reaction
(particularly Risk , Finance, Capital Management time to market opportunities and regulatory
and Customer Insight) needs

25. Royal Bank of Scotland – INTERNAL USE ONLY
FiRST - Finance and Risk Systems Transformation
Sales Play – Finance Transformation, ERM
About the RBS FiRST Program
• FiRST is a transformation exercise which RBS
has embarked upon with an aim to bring
unification & greater transparency to finance &
risk processes within the bank
• The bank with the success of this program aims
to present a coherent picture to the regulator
(FSA – Financial Services Authority) in the UK
across its risk & finance numbers
• The bank has hired a senior-level executive to
own the unification of risk and finance
• RBS has done an extensive evaluation for
finance, consolidation & risk systems as the Anatomy of the Deal
bank is looking at a player who can invest in
this proposition as a partner & support a Tier1
Split across LOB’s (Net LF), approx. % of deal for each Oracle LOB
global player such as RBS
OFSAA (FSGBU) 27%
• The bank’s aim is to do as minimal ERP
customizations as possible and deploy the out-
ERP II 26%
of-box functionality proposed as part of the
Oracle solution stack Apps EPM 22%
BI 5%
• The bank intends to complete the Technology 20%
transformation exercise by FY 2013
Total 100%

26. Solution Expertise
IBU Enterprise Risk and Finance coverage
Stephen Skrobala, Spain
(EMEA ERF POC)
Nazif Mohammed
(EMEA Geo Lead)
Yadhunath Srinivasan, Singapore
Irma Coetzee (JAPAC ERF POC)
Bill Greene, NY Patrick Ng, Hong Kong
(NAS ERF POC)
Kiran Kesavarapu, India
Mark Smedley, WA
(NAS Geo Lead) Rob Woods, Australia
Frank Siderio, PA
Luis Arturo Diaz, FL Stuart Houston, Hong Kong
ERF Global Solution Manager
© 2011 Oracle Corporation – Proprietary and Confidential Slide 26

27. Enterprise Risk and Finance
Global Contacts
ERF Global Solution Manager Asia Pacific
Stuart Houston Yadhunath Srinivasan
Stuart.houston@oracle.com yadhunath.srinivasan@oracle.com
+852 6016 5399 +65 8112 7152
Based in Hong Kong Based in Singapore
The Americas Europe, Middle-East, Africa
Bill Greene Stephen Skrobala
bill.greene@oracle.com stephen.skrobala@oracle.com
+1 973 960 4796 +34916312801
Based in New York Based in Madrid, Spain

28. Thank You
© 2010 Oracle Corporation – Proprietary and Confidential