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Your Risk. In Focus
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Innovative Risk Solutions
Watchtower™
SaaS Solution
Credit ReviewCredit Stress
Testing &CECL
Regulatory Compliance
Operational & Model Risk
Services
IT/CyberAssessments
Strategic& Capital Planning
Risk-BasedCapital Stress Board
Governance
Risk Culture Advisory
Financial Services Clients
in Banking, Credit Unions, Insurance, Mortgage Banking,
& Wealth Management
Veteran Bankers, Risk Experts & Former Regulators with Extensive Experience
Merger & Acquisition
Support
Asset Resolution
Founder and CEO
Improve Your Risk Culture
Risk &
Performance
Monitoring
Risk Governance
• Risk Governance
• Board Structure
• Management
Committees
• Risk Appetite
• ERM Policy
• Board Training
• Risk Appetite
• Performance & Risk
Continuous Monitoring
• Risk Aggregation
• Risk Profiles
• Key & Emerging Risks
• Risk Improvement
Activity Tracking
• KRIs & KPIs Tracking
• Board Reporting
• Risk Assessments
• Strategic Plan and
Imperative Monitoring
(KSIs/KPIs)
• Monetize/Stress
Financial Impact of
Key Risks
• Stress Loan Portfolio
& Key Risks (IRR, etc.)
• Risk-Based Capital
Simulations
• Peer Benchmarking
• Independent Audit
and Loan Review
Results
• Regulatory Exam
Results
• Issue Tracking
Aligned to Risk
Categories
• Alignment of
Auditable & ERM
Entities
ERM Watchtower Integrated Solution
• Risk/Return Analysis
• Economic Capital
Allocations
• Product Pricing
• Executive
Performance &
Compensation
• Risk Attribution
Profitability Analysis
• Merger & Integration
Risk Impact
• New Product Risk &
Performance
Level 1 Level 2 Level 3 Level 4 Level 5
Independent
& External
Validation
Strategic &
Capital Planning
Advanced
Decision Making
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We have the Solution – Let’s Get Started
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Control Your Business – Drive Accountability Result: Stable Earning Growth & Increased Shareholder Value
• Online Dashboard Creates Transparency
• Easy to Understand Board and Management Reports
• “Risk System of Record” (Supports BCBS 239)
Actionable Information for Board and
Management Oversight
• Aggregate by Risk Category, Business Line & Company
• Understand Changes in Risk Profile over Time
Improve Your
Risk Profile
• Risk Appetite Development, Reporting and Monitoring
• Continuous Monitoring of Risk and Performance
Risk Appetite Management
• Strategic Imperative Tracking
• Drive Accountability for Results and Related risk
Successful Delivery of Strategic Imperatives
Your Risk Ecosystem – In Focus
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Identify Your Critical Business Indicators to Monitor Vital Signs
Key Strategic Indicator - KSI
20-30 Strategic Plan Targets
Key Performance Indicator - KPI
30-40 Targets Relative to Budget or Peers
Key Risk Indicator - KRI
80-120 Metrics Tied to Objectives, Key Risks or Material Loss Events
Key Control Indicator (KCI)
Compliance Indicators (CI) and Key Control Questions (KCQ)
Measures Quality of Risk Management
or Control Effectiveness of Key Risks
Critical Business
Indicators
Get Control and Assign Accountability Establish a “Risk System of Record”
Key Risk System ofRecord
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ProprietaryAggregation Methodology
Quantitative Sources
• KRIs & KPI’s (Entered by Owners)
• Call Report (SRA Feed)
• Peer Data and Macroeconomic Data (SRA Feed)
• System Data (SRA’s Standard API)
Qualitative Sources
•Risk Self Assessments(OCC RAS System Included)
• Existing Risk Assessments Uploaded
• Internal Audit, Loan Review and Compliance Results
• Regulatory Exam Results
Report Generation
• Board & Management Reporting
• Dynamic Risk Appetite Monitoring
• Risk Profile Changes • Key Risks and Trends• Strategic Plan Monitoring• Performance Monitoring• Capital Trigger Monitoring• Product Performance• Peer Benchmarking
ERM Watchtower™
SRA’s Proprietary Risk Aggregation Methodology
SRA’s Seven Pillarsof Performance & Risk Aggregation
(Supports BCBS 239)
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Performance & Risk Aggregation Framework to Create Risk Profiles(Enterprise, Business, Department or Process)
ERM Watchtower™ has a Patent Pending in 120 Countries
Ratio-based scalar measurements are normalized across enterprise
Utilizes a Standard Algorithm to Aggregate Information
Aggregation of Resultant Data (Strategic Layer of Data: KSIs, KRI’s & KPI’s);focus on a Critical Data Only
Enterprise Accessibility & Transparency
Risk Governance, Business Decisions and Feedback Loop
Systems, Data & Process Integrity is Facilitated
ERM Watchtower Utilizes a Best Practice Risk Appetite Framework
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• Board Approves Risk Appetite
Statement Annually
• Risk Appetite Statement Provides
Guide Posts for the Strategic Plan
• Monitor and Report Risk Appetite
Compliance
• Link Key Risk Indicators (KRIs)
and Key Performance Indicators
(KPIs) into Risk Appetite for
Monitoring
• Normalize All KRIs (5 Point Scale)
and create a Risk Profile of Each
Risk Category
• SRA has a Patent-Pending on its
Risk Appetite Methodology
ERM Watchtower is Implemented QuicklyBest “Time to Value” in the Industry
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1st Generation
1990 to Mid-2000
Risk Repositories
Financial Reporting Controls &
Operational Risk
2nd Generation
Mid-2000 to Present
GRC Integrated Systems
Compliance-Driven Approach
AnnualRisk Assessments
3rd Generation
Present & Future
Watchtower™
Continuous Risk & Performance
Monitoring
ShareholderValue Creation
ERM Watchtower™ continuously monitors risk appetite, trends & performance
Risk Software Firms Across the Industry are Moving to SRA’s Watchtower-Enabled Ecosystem
Watchtower™
Risk Ecosystem
• VendorWatchtower
• ByTrust Exchange
• Real Time
• CECLWatchtower
• By CRF Advisors
• CreditWatchtower
• By CreditSafe
• Real Time Commercial Customer Monitoring
• Compliance Watchtower By
Governor• GRC Watchtower
By AppPax
• IRR and Liquidity Aggregator
• By ZM Financial Systems
• Call Report &Macro-Economic
Data
• Any Other Sources with
Watchtower API
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KR
Is/
KP
IsK
RIs/K
PIs
or D
ata
Internal Applications Can Be
Watchtower-Enabled
Watchtower-Enabled Features(API Auto Feeds KPIs or KRIs, Single
Contract, Billing and Sign-On)
Best Book on ImplementingEnterprise Risk Management
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• Best Book on the Market on ERM
• Easy to Understand and not overly
Technical
• Contains a Framework for
Implementing Your ERM Program
• Let’s You Understand How to Make
ERM Relevant to Management and
the Board
• Real Life Experience from a CRO
and now Chairman of the Risk
Committee for E*Trade Financial
• SRA Risk Advisor
• Available on Amazon.com
Best Practice: Develop a 2-3 Year
Roadmap for your ERM Program.
Identify systems, processes,
personnel, reporting and governance.
Critical Board & Executive Reports are Generated
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Watchtower is Cloud Hosted and accessible across many platforms
Risk Appetite Tracking Occurs from the Bottom Up,are Measured on a Common Scale & Aggregated
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All risk data is normalized to a five point scale
Michael B. Glotz, Founder and CEO Strategic Risk Associates, LLC
Before SRA’s founding, Mr. Glotz was a Managing Vice President with CapitalOne Financial Corporation. Mr. Glotz held a number of senior positions withCapital One including Managing Vice President of Corporate Audit and CreditReview Services for Capital One Bank ($80 Billion in Assets at the time),which included the oversight and development of over 100 audit and riskprofessionals. Mr. Glotz also supported the implementation of EnterpriseRisk Management and lead independent assessments of bank acquisitionand integration activities for large-scale mergers.
Mr. Glotz served as Senior Vice President and Strategic Financial Officer forCrestar Bank and later SunTrust Bank through acquisition. During his tenurewith SunTrust Bank he held various senior financial positions includingStrategic Financial Officer and head of Strategic Cost Management.
Mr. Glotz is Risk-Reward Co-Chair of the American Association of BankDirectors and is a faculty member of the Institute of Bank DirectorEducation. Mr. Glotz was a Faculty Professor of the Virginia Bankers Schoolat the University of Virginia where he taught Risk Governance and ERM. Hehas delivered Bank Director training for many State Banking Association andindividually for a number of Board Directors.
Mr. Glotz received a BBA Degree in Business with the University of Wisconsin,an MBA with the University of Richmond and completed the ExecutiveDevelopment Program at Wharton, University of Pennsylvania. He is aCertified Risk Professional (CRP.)
Contact for a Demo:
(804) 317-6586
