Global Risk Institute

The Future of Banking and Financial ServicesFriday, June 23, 2017Scotiabank Centre, Toronto

Richard Nesbitt – CEOIntroduction & Framing the Conference

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Our Mission

GRI is the premier risk management institute, that  defines thought leadership in risk management for  financial institutions globally. It brings together leaders  from industry, academic and government to draw actionable insights on emerging risks globally.

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GRI Member Institutions – As of June 2017

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Key Themes: 2015/2017 Comparison

2015 Results 2017 Results

Conduct Risk/Risk Culture Cyber/IT Risk

Systemic Risk Disruptive Technology

Funding and liquidity Risk Risk Governance

Regulatory expectations Asset Management

Stress testing Regulatory Expectations

Cybersecurity/IT risk Conduct Risk/Risk Culture

Disruptive Technology Model Risk

Oil and gas/commodity markets Climate Change

AML risk Funding and Liquidity Expectations

Risk aggregation Stress Testing

Asset Management AML Risk

Climate Change Systemic Risk

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Summary Of Key Risks 2017

2.2%

2.8%

3.9%

4.4%

6.6%

11.6%

11.6%

13.8%

14.4%

17.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%12.0%14.0%16.0%18.0%

GVMT SPENDING & TAXING

OPERATIONAL RISK

WEAKENING GLOBAL TRADE

REGULATORY RISK

OIL PRICES

INTEREST RATES

GEOPOLITCAL

CONSUMER DEBT

HOUSING MARKET

CYBER RISK

Risk Impact

1.7%

3.3%

3.3%

5.0%

8.3%

10.0%

11.7%

11.7%

15.0%

15.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

GVMT SPENDING & TAXING

WEAKENING GLOBAL TRADE

OPERATIONAL RISK

REGULATORY RISK

OIL PRICES

HOUSING MARKET

CYBER RISK

INTEREST RATES

GEOPOLITCAL

CONSUMER DEBT

Risk Prevelance

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Banks Make Money In 3 Ways

1. Net Interest Margin

2. Fees

3. Buy Low and Sell High

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Today’s Conference Addresses

• Operating Environment

• People

• Technology

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Agenda

Gerry McCaugheyMorning Keynote Speaker – Perspectives from the CEO

Greg WilsonPolitical and Regulatory Challenges

Tiff MacklemThe View from the Board of Directors

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Agenda

Mary Frances MonroeBanks Doing Business in the United States

Brenda TrenowdenKeynote Speaker – Women in Banking and Financial Services

Eric Kin‐Ho LeeArtificial Intelligence and Banking

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Agenda

Shawn RoseBank Collaboration with FinTechs

Andrew StuartTreasury, Engine Room Central

Richard GouldingThe Chief Risk Officer Perspective

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Questions and Answers

• We have allocated time for Q&A with each speaker

• Audience has two options for asking questions:

1. Two microphones circulating in the room; please introduce yourself then ask question

2. Submit your question electronically using your phone or tablet via SLIDO• Open your web browser and enter www.sli.do• Enter the event code #FBFS• Type your question and hit send OR vote on questions submitted by audience • Prof. Michael King will ask the question anonymously

Global Risk Institute

The Future of Banking and Financial ServicesFriday, June 23, 2017Scotiabank Centre, Toronto

Richard Nesbitt – CEOIntroduction & Framing the Conference