Investor Presentaiton

Dynamic Risk Assessment What is DRA? Dynamic Risk Assessment (DRA) is an evolution in risk assessment. It considers the traditional measures of risk severity and likelihood - but also considers risk interconnectedness (risks that link together) and velocity (expected speed with which risks will affect operations). The DRA process uses the scientific consensus methodology of expert elicitation to collect the data for analysis, and network theory to connect the organization's risks in a three-dimensional space Potential impact Traditional, two dimensional risk map High Low This individually insignificant risk has hidden systemic significance: it triggers many other risks into existence, all of them more significant than itself Likelihood of occurrence Inter-connected view Likelihood and severity of this cluster exceeds those of this single risk High Connectivity strength: low medium high Likelihood The individually most significant risk exhibits low levels of expected contagion Severity Key features: An evolution in risk assessment Relies on expert elicitation, and advanced data analytics in order to identify, connect and visualize risk in four dimensions Considers the contagion effects of individual risks, and the potential speed with which risks will affect operations Identifies the most acute systemic risks for a business Identifies the systemically most significant risk Provides visibility over how 'structural breaks' (macroeconomic, sociopolitical and other megatrends not necessarily previously observed) impact organization's risk profile Helps to inform clients' forward-looking strategic direction Can inform control design for the prevention, detection and remediation of the risks Informs risk mitigation and response plans in relation to systemic risk Can help increase business resilience and turn risk into opportunity KPMG © 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 42 42

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