Risk Management for Boards of Directors

Independent Expert Advisors to Boards on Risk Mitigation Leaders in Risk Governance and Best Practices Specialists in Derivatives, Mortgages and Complex Instruments
RISK GOVERNANCE Creating a risk-conscious culture Clarifying risk tolerances and attitudes Benchmarking against best practices Integrating risk into compensation Establishing organization, committee structure, and charters Developing risk policies

RISK MANAGEMENT Establishing effective risk reporting and communication o Turning data into information and action o Mix of metrics and the usefulness of measurements used to report risk o Utilizing risk limits, controls and triggers for review or action o Escalation through the organization Evaluating the major risks facing the organization o Liquidity, funding, operational, counterparty, credit, market, fiduciary, capital, model and economic Implementing a risk conscious culture Integrating reputational risk management within the culture Performing financial forensics/internal investigations/litigation support

M&A, ADVISORS, SUBADVISORS, AND OUTSOURCED SERVICE PROVIDERS Integrating risk and return on economic and regulatory capital into your strategic plan Assessing portfolio strategy for distressed assets and runoff books Determining capital adequacy and responding to economic capital Responding to regulatory requirements Integrated approach to limit setting Integrating risk into your new business processes Performing Comprehensive due diligence services including M&A, advisors, subadvisors, and outsourced service providers

BOARD AND RISK COMMITTEE EDUCATION Providing Risk oversight, roles, and responsibilities Determining questions Directors should ask Customizing Board educational modules covering all aspects of risk management and risk governance

CAPITAL MARKET RISK ADVISORS 600 LEXINGTON AVE., 30TH FLOOR, NEW YORK, NY 10022 212.404.6100 phone 212.404.6110 fax www.cmra.com info@cmra.com

Capital Market Risk Advisors (www.cmra.com) is the pre-eminent financial advisory firm providing risk management advisory and litigation support services to investment and commercial banks, insurance companies, institutional investors, mutual funds, hedge funds, funds of funds, and other market participants. Founded in 1991, we offer clients a unique perspective based on founder Leslie Rahl and partners Barbara Lucass and Peter Niculescus collective 100+ years of hands-on experience in risk management, trading, portfolio management, development and implementation of legal and compliance programs, and knowledge of industry best practice. Our advisory services include assessing risk exposures and advising on risk management and strategy, the valuation of complex or illiquid instruments, and benchmarking risk management and risk governance practices against best practice. We also advise senior managers and Boards with respect to all types of risk management and risk governance issues, developing risk appetite statements, advising on risk reporting and communication, and reviewing and drafting risk management and compliance policies and procedures. As pioneers in the derivatives and mortgage businesses and seasoned veterans with front-line as well as Board, governance and regulatory experience, we at CMRA have played a leadership role in establishing best practices in financial services. Our ability to understand the quantitative details while simultaneously understanding Directors needs uniquely qualifies us to translate and demystify complex issues for Boards. The synergy between our advisory and financial forensic/litigation practices helps us provide clients with unique insight about what can and does go wrong in managing risk and informs our perspective in an unparalleled way. Additionally, our work with both the buy- and sell-sides of firms on six continents provides us with an unmatched point of view in solving seemingly intractable problems.

LESLIE RAHL
Ms. Rahl, the founder of CMRA, is a member of the Board of CIBC and Risk Committee. Ms Rahl was a pioneer in the development of the swaps, caps and derivatives business which she co-headed at Citibank in the 1980s. She served as Director of ISDA for five years. Ms. Rahl is the author of two books and numerous articles on risk. After a 19-year career at Citibank, Ms. Rahl formed and has run CMRA for 19 years. She has an MBA from the Sloan School and an SB from MIT.

ABOUT
BARBARA LUCAS
Ms. Lucas has more than 25 years of experience in law, business and government and is a former partner and chairperson of the banking department at Cadwalader, Wickersham & Taft. Prior to joining Cadwalader, she was General Counsel to Citicorps Investment Bank, and served as Special Counsel in charge of the SECs corporate governance task force. Ms. Lucas received her undergraduate degree in English from Cornell University and her J.D. from the Washington College of Law at American University.

PETER NICULESCU
Mr. Niculescu heads Fixed Income Advisory at CMRA. Prior to joining CMRA, Peter was an Executive Vice President at Fannie Mae, where he ran the Capital Markets division, responsible for acquisition of securities and loans on balance sheet and for their hedging and funding. During the 1990s, Peter was a Managing Director at Goldman Sachs, where he was responsible for Mortgage and Fixed Income Research. Peter has a PhD in economics from Yale and is a CFA charter-holder.

CAPITAL MARKET RISK ADVISORS 600 LEXINGTON AVE., 30TH FLOOR, NEW YORK, NY 10022 212.404.6100 phone 212.404.6110 fax www.cmra.com info@cmra.com