1. The New Risk Management 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL.

2. The New Risk ManagementTABLE OF CONTENTS1) Broadened Risk Management2) The New Risks3) Risk Management Capabilities Process Technology4) Summary & Questions 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 3. Broadened Risk ManagementSource: Accenture 2011 Global Risk Management Study 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 4. Broadened Risk Management Risk Management used to be protecting againstchanges in FX, Interest Rates, CommoditiesThen we started paying more attention to 2002 Internal controls 2008 Liquidity and Counterparties 2011 Supply Chain 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5. Broadened Risk Management1) Foreign Exchange Risk2) Interest Rate Sensitivity3) Liquidity Risk4) Counterparty Risk5) Operational Risk6) Supply Chain Risk 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6. The New RisksForeign Exchange RiskWhat is new? Globalization More revenues/costs exposed to foreign currency Stakeholder scrutiny FX gains/losses no longer tolerated post FAS133 Rate volatility Increases justification for effective hedging 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7. The New RisksInterest Rate SensitivityWhat is new? Interest Rates fairly flat Credit spreads are bigger Due to risk managementconcerns of lenders 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8. The New RisksLiquidity Risk The risk of not knowingwhat you need to know(a.k.a. Lack of Visibility) Since 2009 Effective Cash Forecasting #1 or#2 Risk Management Priority Why? 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9. The New RisksLiquidity Risk The risk of not knowingwhat you need to know(a.k.a. Lack of Visibility) Since 2009 Effective Cash Forecasting #1 or#2 Risk Management Priority1) If you dont know where cash is, dont know what risks it is exposed to2) If you cant plan ahead, you are reacting 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10. The New RisksCounterparty Risk If not the biggest priority, its #2 2008 surprised us with unforeseen failuresand retrenchments Tightening of liquidity downstream and lastingeffect on risk perceptions Inclusion of CVA measure in FAS157 great exampleof change in actions Demand for Total Exposure by Bank reporting 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11. The New RisksOperational Risk Sarbanes-Oxley made uscare about controls Some say nothing new introduced just anew reason to focus on the accountabilitystakeholders already expected Many adopted (or updated) technology tosatisfy SOx 302/404 Increased concerns about spreadsheets 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12. The New RisksSupply Chain Risk Risk of SC disruption more strategic concern Treasury becoming more responsible for theFinancial Supply Chain Many supply chain risks are beyond Treasury What can be controlled Supply chaindisruptions due to lack of liquidity Enter: Supply Chain Finance 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 13. What Do We Do? Accenture study: 10% of organizations areRisk Masters Risk Management capabilities superior to their peers Viewed Risk Management as driver of business benefit (more so than their peers) 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14. What are Risk Management Capabilities?= Combination of Process and TechnologyExamples Collaboration across teams Increased sophistication of modeling Going beyond compliance Integration across business units Visibility across the business Invest in continuous improvement 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15. What are Risk Management Capabilities?= Combination of Process and TechnologyBusiness Benefits cited by Risk Masters Collaboration across teams Increased sophistication of modeling Going beyond compliance Integration across business units Visibility across the business Invest in continuous improvement 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 16. What Do We Do? Accenture study: 10% of organizations areRisk Masters Risk Management capabilities superior to their peers Viewed Risk Management as driver of business benefit (more so than their peers) 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 17. What Do We Do? Accenture study: 10% of organizations areRisk Masters Viewed Risk Management as driver of business benefit (more so than their peers) Risk Management capabilities superior to their peers 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 18. What are Risk Management Capabilities?= Combination of Process and TechnologyBusiness Benefits cited by Risk Masters Collaboration across teams Increased sophistication of modeling Going beyond compliance Integration across business units Visibility across the business Invest in continuous improvement 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 19. What are Risk Management Capabilities?= Combination of Process and TechnologyTechnology is an enabler 1) Productivity 2) Facilitate Changes inprocess, workflow,policies Visibility into exposures Measurement tools Reliability 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20. Broadened Risk Management1) Foreign Exchange Risk2) Interest Rate Sensitivity3) Liquidity Risk4) Counterparty Risk5) Operational Risk6) Supply Chain Risk 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 21. Risk Management CapabilitiesForeign Exchange (& Commodities)1) Process 2) Technology Identify Exposures ERP Net Exposures Treasury Mgmt Systems (efficiently) Hedge Risk Mgmt Systems Measure Effectiveness Spreadsheets*3) Objectives Full visibility Integration Automation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22. Risk Management CapabilitiesInterest Rate Sensitivity1) Process 2) Technology Identify Exposures Risk Mgmt Systems Measure Sensitivities Treasury Mgmt Systems Hedge or not to Hedge Market Data Source Measure Effectiveness Spreadsheets*3) Objectives Full visibility Integration Automation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 23. Risk Management CapabilitiesLiquidity1) Process 2) Technology Actuals ERP Forecast Treasury Mgmt Systems History Bank Portals/SWIFT Measure Accuracy Spreadsheets*3) Objectives Full visibility Integration Automation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 24. Risk Management CapabilitiesCounterparty1) Process 2) Technology Exposures* Banking Portals Counterparties Treasury Mgmt Systems Market Data/Metrics Trading Systems Consolidated Reporting Spreadsheets*3) Objectives Full visibility Integration Automation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 25. Risk Management CapabilitiesOperational1) Process 2) Technology Processes Not manual Duties No re-keying Controls Not spreadsheets*3) Objectives Documented Auditable Controlled 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 26. Risk Management CapabilitiesSupply Chain1) Process 2) Technology Supply Chain Finance Bank SCF Platform Multi-Bank SCF Platform3) Objectives Full visibility Integration Automation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 27. Risk Management CapabilitiesSupply Chain FinanceSCF is actually three things:1) Mechanism to improve working capital of suppliers (and reduce risk of disruption)2) Technique to extract liquidity from the supply chain3) Opportunity to standardize terms to suppliers 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 28. Risk Management CapabilitiesSupply Chain FinanceReducing Risk of Disruption SCF programs offer early payment at better rate than (smaller) supplier could get on their own If suppliers need cash to keep going, SCF probably their best option Can support growth too For high growth suppliers, decreasing DSO means more rapid investment and scalability (e.g. Apple) 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 29. Risk Management CapabilitiesSupply Chain FinanceSCF is actually three things:1) Mechanism to improve working capital of suppliers (and reduce risk of disruption)2) Technique to extract liquidity from the supply chain3) Opportunity to standardize terms to suppliers 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 30. Summary Economic events have broadened risks to be managed Treasury has more risk management responsibilities More focus on treasury to: Perform proactively Collaborate internally Scale globally 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 31. Summary Heightens need for technology to deliver: Visibility Automation Sophistication Integration 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 32. Summary New technology tools and platforms makeintegration easier Multiple systems can feel like one system Single Sign On (SSO) Web Services (or similar) 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 33. Questions? treasury@kyriba.com kyriba.com 1-855-KYRIBA-0 twitter.com/kyribacorp linkedin.com/company/kyriba-corporation 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 33