PowerPoint Presentation

Managing business riskLauren Alderton

Managing your business risksGood afternoon and welcome everyone, for those of you I have met before, you will know I dont think it was much of a coincidence that the solution in question today was named Intelligent Office. For those I havent met, before, my name is Lauren Alderton and I started life at Intelliflo working along side the support team taking calls from existing users. I later moved into the training department where the questions were quite different like 'how do I log on'. I now support the sales team where the queries are a total different kettle of fish.But one thing is consistent of all 3 groups, How can we manage risk? 1

ObjectivesIncome reconciliationWorkflow audit trails Compliance

Whether or not I think intelligent office is aptly named, the Objective today is to explain how software like Intelligent Office can help mitigate risk within the business.The specific objectives Ill be delving into areIncome reconciliation & RMAR How IO supports the Automated income reconciliation process and how key elements of RMAR reporting can be produced, saving time and mitigating riskDiary management, workflow audit trails and document designer - how the IO workflow capability can be used to support their business processes in order to deliver tailored, consistent, robust processes, protecting an organisation from missing vital servicing dates evidenced to both the client and regulator Compliance- How the inbuilt compliance tools will provide a framework to support the advice process, ensuring new business cases are only submitted and file checked when required.

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How do we define Risk?We categoriesRiskasthe potential of losing something of value. Valuessuch asphysical Healthsocial status, emotionalwellbeingorfinancial wealth

How do we define Risk/whatis Risk?We categoriesRiskasthe potential of losing something of value. Valuessuch asphysical health,social status, emotionalwellbeingorfinancial wealth,canallbegained or lost when taking risk.Risk can also be defined as theinteraction withuncertainty.Uncertaintyis a potentialun-predictableoutcomethat everyone faces on adayto day basis.http://en.wikipedia.org/wiki/RiskIn Financial Services there are many different types ofriskto manage, but are we really aware of all theexternalrisks were exposed to?Andhow can we ensure we protect ourselves. Can we prepareto manage so many risks, would technology help?Risk isanunavoidablepart of the investment process, weather that be systematic versus non-systematicdue to Interest rates, inflation, political oroperationrisk,it covers every aspect.In April the total amount of fines paid out by the FCAsince Januarywasover 17 million poundshttp://www.fca.org.uk/firms/being-regulated/enforcement/finesthese figures suggestmaybethere weremore thana feworganisationswho are totally protectedby external risk.In fact we know well never be totally protected, but putting provisions in place to preventunnecessaryRisk may well ensure your firm doesnt fall into the list of nextyearsfines to the FCA.A particular uncertainty for allrelates toRegulatory changes. Industrystandardsmeanthat not onlythe Service and adviceprovided must beadministeredproperly, but that internal process aremanaged in acompliantmannertoo.Firms can protect them self by recruiting the correctEmployee'sand providingadequatetraining and support, but if technology does not support the back bone of theorganisation,unnecessaryriskcan creepback in, exposing gaps in knowledge orlack ofexperience andtrustamong a team.One thing we can be certain of is thatthe industry is constantly evolving.So too is technology and the expectations we hold as consumers

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Can technology help mitigate Risk?Change is coming faster today than ever before

10 million over and above normal product investment for RDR

65% of UKs live EDI traffic automating up to 98%

Can technology help mitigate risk?Some might say, change is coming faster today than ever before and businesses are forced to adapt or surrender.One such example was RDR. RDRsaw the survival of the fittest,wherethe strong prevailed. That begs a question, was it the strong or the most prepared that survived?Intellifloinvested 10 million pounds over and above normaldevelopmentspends on Intelligent Office that year.The glue thatholds the solution together wasborn from an income matching toolso the theory of fee reconciliationand RMARalready existed as part of the main solution,we had toensurehoweverwe were as prepared as possible to take the burden off your shoulders for RDR.

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Income

Developing service statuses allowed our user base to quickly identifygroups or propositionsof client types, while linking configurable charging structures to these propositions presented user with less room for error.Our vision was for you to be able to press a button andsee how many clientsyou have thatpaid ongoing fees,verses fees that were paid from a provider or planform.We tried to model the RMAR as close the FCAs template as possible so the look and feel made for less challengeswhen transpiring the data. To a certain extent we delivered on that prior to RDR,but more was neededfor RDR and the likes of section K's analysis,andso thecleverlynamedRMAR detail report was born. The RMAR detail report allowed users todrill down into not only section ks adviser charges, butclawbacksand profit and loss too. It didnt matter if you were independent or restricted, we had data evaluatingfor both.The simplicity wasgenius, put what you chargein theright client with the right type of Fee and thevualla, theRMAR was basically automated. Another example of changes in the industry wheresoftwarecan enable you to be proactiveand prepared, isthesun set clause and MMR(Not sure if I should go into these, more info is needed)How can technology helpmitigate this Risk?Letstake a closer lookat how technologycan help mitigate Risk byenablingyou tobe more prepared.Web based solutions such as Intelligent Office offer aninternaleco systemhelping you to achieve this edge.We have UK based technology and therefor understand regulationrequirements.We are a single solutionorganisationfocusing on financial services specifically. We take no distraction fromanyother solutions and focus.Manyemployeeshave either come from backgrounds likeyourselvesor have worked with providers and technology companies. Our goals are to enable you to reduceservicingcostswhilestill continuingto grow and maintain a competitive advantage through increased productivity and efficiency.Operational risk is perhaps the most significant risk organisations face.Many financial institutions have spentmillions ofpoundstrying to developtheir ownrobust framework for measuring and managingprocesses such as income reconciliation, client management, Compliancechecking,Yet, in spite of this huge investment, for many firms developing a viableCRMprogramme remains an expensive often unobtainablegoal.With an out of the box solution, this is taken away.Regulatory requirements as well as internaloperationdrivers are causing firms to re asses development of their own tools.This applies not only from a data and systems perspective,but also fromanorganisationalpoint.The digital revolution has created a new generationand feeling towards technology, we all expectmore accessibility, flexibilityand customisation.Weexpect to move seamlessly and inreal timefromboth thephysical and virtual world.IOprovidesthe tools to enable people to work anywhere, anytimeerasing the four walls of the organisation.Takeour earlier point re income reconciliation, Intelligent Office holds a full fee and commission reconciliationtool,what's more the tool is automated allowing statements to be dealt with as quickly as possible. Statement can be reconciledfrom one of 3 ways, EDI- electronic data interchange, CSV and paper statements.EDI's allow statementsto be viewed like normal statements, but are sent to the solution direct from the provider. The EDI can be held in a holding area and 'made live' when the user is ready to work on it. Simply making the statement live will trigger the automated allocation process, linking clients with Advisers, introducers and income types. As the data comes direct from the provider, there is less room for error and heightened accuracy for MI production.Csv's enable users to deal with allocating income where and when providers can't supply EDIs. CSVs take the form of a standard template, put togetheras part of the standard solution, users can either ask providers to send and complete income in the standard template or where online Excel versions are made available, users can simply copy and paste the data into the solutions template and import. Where only a paper statement is made available for example. the client data,data such as name, policy number, income type and amount can either be entered into the CSV template or can be manually typed into the solution. If the CSV method is used, it can be re used each month depending on regularity of the income received and used asa data referenceexercise, rather than data input. Statements are never deleted and thus provide a full audit trail right back to the first days IO was used to match income.The automatic allocation for any of the mentioned statementexamples works in exactly the same way. Intelligent Office uses sophisticated matching criteria to marry up client records with expectations overnight. The Expectation, be that a client or provider paid fee or Commission payment,can be entered againstthe clientas part ofa mandated workflow. It is not a requirement to capture expectations in IO, but we recognisethe added benefits in recording such data to aid reportingsuch as ageddept.and new business. Matching criteria such as name and policy number must be exact in order to perform a one to one match. It is also a requirement to have any new business in a status of at least 'Submitted to provider' to reconcile the income. Enforcing such rules reduces the risk of income being paid or credited to advisers before the required internal workflows have been met.Should data not match exactly, an exception or Unallocated' item will be identified. Unallocated items generally relate to differences in name or policy references. It might be thatthe married or maiden name hasnt been updated at either the adviser or provider end, or an additional reference number or suffix has added to the policy. Either way, should an exception remain unallocated, users still have the tools to manually allocate. (Note: it would be good to add the year to date figure for auto allocated incomes for existing users on the slide).Cash reconciliationcan also be automated with web solutions such as IO. Money doesn't come via the system or through us as a provider, we don't take cuts of any assets under management, all thatis required is for you to tell the solution when monies have been received. Once added to the system the cash receipt will link automatically to the statement updating income reports and dashboard from 'submittedincome' to 'received income'. FCI (fee Commission Income) reports can be run per adviser, introducer, group andorganisation level. Dashboards enable lighter touch users to see a summativeoverview of income submitted and receivedagain at adviser,organisation or group level. Specific incomeMI drillsdown to exact client names dates and policy info much like the RMAR discussed earlier.IntelligentOffice can also be used to close off a particular period end, so should your month end fallexactly as the last bits of income arereceived on the last day of each calendarmonth or if you prefer more flexibility,IntelligentOffice caters forflexibility.Much like the providersstatements never being deleted, cashrecipes, MI and Month end Audits are all available with specific filters to provide an infill of data right back to the initial data entry.Supporting MIreports will identify unallocated items, expected opportunities andpipelineincome. Havingdata such as this at the click of a button de risks an organisation to a certain extent itself, the added extra that the system is then automated prevents errors occurring so the data output is not only correct and there when ever needed, but it alsofreesup time of the person previously carrying out the allocation exercise.By providing solutions such as this,technology enables you to focus on the social aspect of your businessproviding more time to service clients and less time worrying about submitting reports.Itsnot just about the time it saves, its the accuracy thats produced, whichletsface it, is the difference between you being included in that 17 million fine or not. Reports such as the RMAR detail report allow businessesto identify trends andunderstand the impacts those trends impose on a business,such as theproviders you work closely with or theservices you can offer your clients. Software helps firmsovercome issues identified by introducingautomated andinnovative revenue models, helpingfirms tolowercostand introducenew business models. With the right strategies and vision, it is possible to welcome and conquer, rather than fear and evade inevitable regulatorychanges,knowing solutions like IO have their eye on the ball too,helping you buildathriving business.http://www.pwc.com/gx/en/technology/index.jhtml5

Income Demo

WorkflowsHow effective are your business processes?Togain amorecompetitive edge,a sophisticated solutions is required

The use of technology to help Manage Risks within a business ideally is designed to save time like that of the Income matching process.Firms find that they are able to re deploy employee's to assist with other tasks, take on new projects and enhance the all-round service clients receive. Thisenvirablyleads to cost saving too, be that there is now more time to chase income youhaventreceived, identified though MI, or in salarypayments and working hours.

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Workflow

Workflow How effective are your business processesTogain amorecompetitive edge,a sophisticated solutions is requiredWhere technology helps automate particular tasks it also helps to stream line process through the assistance of workflows or document generation.Intelligent Office uses configurable automated workflows to trigger tailored processes when adding new business, updating client details andgenerating leads for example. The configurable workflows are made up of a series of tasks or activitiesall with trigger points for who they should be assigned to, when they should be generated and what documents may need to be generated off the back of a given task. Tasks and documents can even be shared via the Personal Finance portal. Sharing Tasks and documents with a client in this manner means that clients are constantly kept in the looping, linking nicely back to the point made earlier about 'how do you justify the service you offer a client. The portal makes servicing transparent and clear to see an audit trail. Not all tasks forming a workflow would be considered safe for clients eyes, many in-fact would be purely for internal use, reminders to chase providers, ensure the correct Fees have applied, meeting review notes etc. There could be a theory of clean and dirty task- Clean for the client to see, dirty ones for internal use, acting as alerts, reminders and audit trails. The flexibility of workflows present firms with a clean slate of process mapping, right down to the physical wording of the task. Tasks have clear Subjects or task types, directing the exact function- annual review for example, while an editable subject or notes section can be used to extend the tasks requirements. As part of a workflow, once a tasks has been completed it moves from the open activity task list to the activity history list. Organising tasks in this nature makes it easy to see what tasks are outstanding and who has what workload, enabling a firm to see the total audit trail and plan for future enforcement when workloads are predicted to be high. Predictions and forecasting is just another of the many benefits of using technology to manage risk, take the task workload as an example, Firms can reduce the unexpected end of month or annual review dash simply by recording all due reviews against clients at point of entry onto IO, via an automated workflow. The flow triggers the review meeting prep, the reports required to support the review, the physical review date and any follow up action. Now as all of this is recorded automatically, that has taken a user no time at all, but what is clear, is all the clients that have Due task sitting in a list of things to do. Workflows can be dynamic list so if only one of the 4 or 5 tasks is due now, the other tasks will wait in the background until the first task has been completed of is at least in progress. workflows can be configured with transition delays also, so should the next task not need to appear for 5 business days after, allowing for prep time, it allows firms to build a real forecast of how long a given process might take and where more investment may be needed. Everyone in the organisation is following the same process, no client will be missed and further more youre treating customers fairly by governing the same audit trail. (Note: could go into profit and loss)Document generationDocument generation can be an expensive but necessary evil when servicing clients.The social, mobile, analytic and cloud technologies that underpin this new revolution are producing numerous opportunities for companies to generate value in totally different ways and even, indeed, to redefine their businesses. The Personal Finance portal introduced to you earlier today by Nick is just an example of how this change might come about. Tools such as Document designer built into Intelligent Office offer users the ability to re-use data in their back office solution to produce documentation. Re using data ensures accurate data is delivered direct to the client either in the traditional paper format or via the personal finance portal.Document designer is essentially word with an intelligent office add in. The add in is the component that pulls data from the solution into the documentation, the accuracy such tools provider allows configured template to always address the correct information associated with the correct client. Document designer has many additional benefits. Prompts' and repeaters built into templates allows users to select en mass list of data and content such as products for letters or authority or Portfolio/Valuation reports to Fact finds information summarising a review meetings with objectives or goals. Conditions are more powerful in that they relate to specific document sections, take a suitability report for example, conditions can be built around content so that if conditions are identified, particular paragraphs can be used or discarded. A condition might be- the client has been identified to have a valid Will and thus the paragraph summarising this is used, alternatively because a condition has been applied, should the client not have a valid will, the applicable paragraph confining your advice will be used instead. Regardless how simple or complex a document needs to be, as document designer is simply Word at its purest, pretty much any template can be produced.Templets are pulled together by those with potentially restricted access, super users, super users will be able to construct the letter in Administration, while no others users see or have access to it. Once happy the document is promoted to the required group or organisation structure. At the point content needs to change, such as regulatory content, the documents can be demoted and edit or cloned to form another similar template. The end users sees only the content the designer is happy to expose, new sections can be created with draft snippets and even existed content can be locked down so the end user can edit specific sections. Upon generation the documents will save automatically to the client record, there is also a document queue for any such documents that may need multiple investment or proof checking before being possible to share with the client. Either way the profile of the document details the audit trail.Where the traditional method may be used or preferred, users can simply print from the saved document. Enhanced service offering may result in both clients and advisers being comfortable with sharing this data via the Portal, In fact we say feel comfortable is this actually not a more secure way of sharing data? If we go back to that tradition method, great weve used document designer to make sure accurate data is entered into our suitability letter for example, but now were going to print it, put it in the post and how do we know whos opened the report? Did it even make it? The secure Massaging and linked Document vault that feeds data out of intelligent office direct to the portal ensure again another huge tick with the FCA. Just look at how much less post you get from the bank or interactions with providers, in the situation where its too costly to see a client face to face and physically put a document in the correct hands, the Personal Finance portal offers you the next best thing.Any data can be shared via the portal, general communication, ID documents, valuation data, its there to use as you wish, but if this again goes some way to help manage other possible risks you face within the business then it can only be beneficial and can count towards that preparation for when one day, your potential clients are looking at a competitor because they offer a more secure advice journey.8

Workflow and Audit trail Demo

ComplianceIts always at the forefront of our minds

ComplianceAlmost everything discussed in this track, comes back to compliance, Regulatory reporting, Audit tails of Income reconciliation, Document generation and content shrining via the online PFP. Reaching the mass markets of potential and existing clients need to be efficient and cost effective, but compliance must also be at the forefront of our minds. Its compliance after all that encompasses all realms of risk management. Where software can interact with compliance activity it frees organisations of less burden. Intelligent Office host a full compliance suite as part of the standard solution. Workflows make up a large piece and although are fantastic for process mapping and to triggers reminders for guidance, the dont mandate activity. For a more mandated workflow Intelliflo designed Life cycle. Life cycles are journeys a given product may follow, Typically Draft>submitted to provider> in force. Where the power of life cycles kicks in is when the user is stopped from proceeding because part of the workflow is incomplete. It could be due to missing data such a national insurance number or a selection of specific tasks. Life cycles also govern what users are able to move a product from one status to another. Possibly one of the most powerful tools Intelligent Office offers over any other solution is the way in which we can mandate pre and post-sale file checks right from submission. Lets imagine the journey..You add a new client onto the solution, an automatic workflow is created, prompting the user of what steps to take. One of the tasks might be to activate a Portal so that the client can partially complete the Fact find, possible run through a set of ATR or objective questions, upload any of their existing products and ID related documents. They can then message you securely confirming their first meeting. If we step back a stage quickly, had this example been just a potential client, Id say you have a pretty good commitment from the offset, get the fee agreement signed pronto. Now, anything entered onto the portal is going to come direct to you, no need to re key, its there, ready and waiting. The more data you hold in IO the more date can be re used in document designer and integrations such as analytics of forecasting tools like that powered by e value, again no need to type- just recycle. After analysis and recommendations have been made, a draft plan is entered onto the solution. The first piece of data required is the name of the selling adviser. Here is compliance catch number 1, each adviser is gated or authorised in IO to only sell within their qualification parameters. The parameters can be set up once and may never need editing, or can be updated as and when qualifications change. Along with gated settings there is also options to build panels for advisers, really restricting access rights and new business channels. Should the piece of new business pass the selling advisers gating, next comes the life cycle. Compliance catch 2. The life cycle will look at Roles, rules and tasks i.e. the adviser may be authorised to sell the business, but you may not feel comfortable allowing them to submit the business without checks. With Straight through processing, submitting business Trading can go direct to the provider from IO, reminding users of rules and Task that might have been missed. For those of you I have met before, you know I believe it wasnt Ironic our solution was aptly named 'Intelligent Office.With Life cycles, if stages have been overlooked a user will not be able to move. Life cycles offer a huge attribute toward de risking the business by stopping products being submitted until the suitability report has been produced or not allowing a plan to go in force until the policy number has been added. Several recommendations can be made at once in any given advise journey, there for all recommendations can be included in reports. Life cycle are there to guide the user with intuitive message, but primarily to protect the organisation. By preventing stages like submitted to provider, you can potentially hold up income from being paid to adviser and introducers, see reasons why new business might be bottle necking and review MI to asses segments of new business being written.Make way for compliance catch number 3. If the new business has successfully made its way passed gating and life cycle roles rule and tasks, there is always file checking. The online file checks prevent firms having to revert from a paperless office, simple to produce files when auditors are in. The web based nature, constant audit trails and free flow of data enable compliance checks to be performed remotely or face to face via the cloud. File checking settings look at a number of configuration options. Initially the life cycle, should a pre or post sale check be performed, if the pre is selected, user can opt not to send the case of post checking also. Next is the exception option, is it a particularly large lump sum or is the client identified as falling into a more risky age group, if so, it falls into the pre or post queue. For more consistent checking there is the product and adviser risk set up, e.g. does the adviser fall into a category of advisers, say red amber green, and do particular percentages of cases need to be submitted for pre or post sales checks. These checks may be carried out internally or by external checkers. Regardless, a full and compliant check list is constructed within compliance and links straight back to documentation, research and products, all visible within the IO. No paper file, just the full joined up process, visible online.When you think of compliance, complaints and breaches, CPD might spring to mind. Well IO offers this too, and maybe now you see why we refer to it as so much more than a back office solution. 10

Compliance Demo

SummaryStreamline Income reconciliation and support the production of Regulatory reporting (RMAR)

Enable your business to build consistent robust processes throughout the advice journey

Support the needs of your business and the regulator and provide a framework for the advice process

So in summary, IO can help you mitigate risk, byUsing EDI to streamline Income reconciliation and support the production of Regulatory reporting (RMAR)enable your business to build consistent robust processes throughout the advice journeySupport the needs of your business and the regulator and provide a framework for the advice process

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13Eco System

I hope Ive helped make the Eco system and solution come to light a little clearer today. Please attend the other sessions to joint up the full view of how we can help. If there was anything I discussed today that was new and you are an existing user, keen to try out some new functionally please see your account manager or look to attend one of our training sessions. If however you are not an existing client and would like to know about intelligent office please see a member of the sales team.

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