©2012 FIS and/or its subsidiaries. All Rights Reserved. New Regulatory Guidance on Enterprise Risk Stress Testing & Impact to Foreign Banking Organizations (FBOs) Allan Cuttle, Director, Enterprise Risk Management Enterprise Governance, Risk & Compliance (EGRC) Solutions Fidelity National Information Services, Inc. (NYSE: FIS) Title Slide Title and Date Font: Calibri, 28 pt Color: 85 percent black Subtitle & Presenter Name Font: Calibri, 16 pt Color: 79/111/25 Optional Copyright Should only be included on title slide and only if necessary No Page Number Click on the corner of this text box to delete Title Slide Title and Date Font: Calibri, 28 pt Color: 85 percent black Subtitle & Presenter Name Font: Calibri, 16 pt Color: 79/111/25 Optional Copyright Should only be included on title slide and only if necessary No Page Number Click on the corner of this text box to delete

Allan Cuttle Director, Enterprise Risk Management Allan Cuttle is a Director at FIS, leading the company’s enterprise risk management business Allan has over 25 years of experience as a leading industry risk management practitioner and consultant. Allan's extensive background and expertise is in Enterprise Risk Management (ERM), Operational Risk Management (ORM), Sarbanes-Oxley and Anti-Money Laundering (AML) / Bank Secrecy Act Compliance. Prior to joining FIS, Allan was a member of the Risk Management Leadership Team at both PwC and Ernst and Young providing Enterprise Risk Management, Integrated Governance, Risk and Compliance (GRC) and Risk Transformation services and solutions to financial services clients. Allan was also the founding and managing partner of Operational Risk Enterprise, Inc. (ORE), a boutique risk management consulting and technology solution’s company specializing in ERM and ORM. Prior to consulting, Allan was in the banking industry for a period of 15 years. At the end of that tenure Allan was the Deputy Chief Operational Risk Officer for Deutsche Bank (DB), directing the global implementation of the Basel II Operational Risk (OR) Framework within all DB businesses and jurisdictions worldwide. 2 2

Presentation Outline Requirements triggered from guidance & impact to FBOs Pitfalls to avoid, opportunities to leverage How stress testing fits into a high-performing risk management model The five characteristics of a high-performing risk management model Five practical steps to transform risk management into a results- producing engine 3 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

Recent Enforcement Actions Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Enforcement Actions by Issue Source: Banking Agency Published Enforcement Actions 4

New Regulatory Guidance – Stress Testing Stress testing is exercises that are forward looking assessment of potential impact of various adverse events & circumstance Effective date: July 23, 2012 FRB, FDIC, & OCC are considering extending the implementation date (Sept 2013) Applies to banking organizations > $10 B in consolidated assets Regardless, banks of all sizes can benefit from guidance Covers U.S. offices (i.e. branches and agencies) of FBOs FBOs provided some flexibility Guidance is a game changer Stress testing should cover all risks such as credit, market, operational, interest-rate, liquidity, country and strategic 5 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Stress testing should be key component of risk management Stress testing framework should have five principles so that it: 1. Is tailored and capture’s enterprise risks 2. Employs multiple stress testing approaches (i.e. scenario, sensitivity, enterprise-wide & reverse stress testing) 3. Is forward looking and flexible 4. Produces stress test results that are clear and actionable 5. Includes strong governance and effective internal controls 6 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Scenario analysis involves: Historical or hypothetical scenarios to assess impact Logical narrative or “story” of events and circumstances Organization’s unique vulnerabilities Translating into balance sheet impact Sensitivity analysis involves: Assessment of exposures, activities and risks when certain variables, parameters and inputs are stressed or “shocked” Changing variables, parameters or inputs without an explicit underlying reason or narrative 7 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Enterprise-wide stress testing involves: – Assessing impact of certain scenarios on the banking organization as a whole, particularly with regard to capital and liquidity – Robust scenario design and translation of scenarios into measures of impact – Scenarios should incorporate simultaneous occurrence of firm specific and macroeconomic and market-wide events – Translating into balance sheet impact 8 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Reverse stress testing involves: – Identifying “break the bank” type adverse outcomes. For example: Credit loss that results in undercapitalization Material loss from large employee fraud Criminal penalties for failing to file SARs DOJ prosecution for lending discrimination – Deducing types of events that could lead to such outcomes – Reveal blind spots, unknown risks or internal control weaknesses 9 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Operational risk stress testing is key challenge Operational risk is broad: – Compliance – Information Security – Transactional – Fraud – Human Resources – Third Party – Vendor 10 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

New Regulatory Guidance – Stress Testing Bank’s senior management needs to design and implement stress testing framework Board of directors needs to: – Approve stress testing framework and policies – Make sure framework covers all risks and uses techniques such as scenario, sensitivity, enterprise-wide & reverse stress testing – Make sure stress tests include regular tests for adequacy of capital and liquidity – Monitor compliance with framework – Use stress testing results for risk oversight & strategic planning – Ensure framework is evaluated and validated independently 11 Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete Slide with Body Copy Heading (All Slides) Font: Calibri, 28 pt Color: 85 percent black Title case Text box at.42” and.35” from top left corner Subhead Font: Calibri, 18 pt Color: 79/111/25 Title case Bullets Font: Calibri, 18 pt Text color: 85 percent black Bullet color: 79/111/25 Text box at.42” and 1.89” from top left corner Sub-bullets 1 Font: Calibri, 16 pt En-dash color: 141/198/63 Sub-bullets 2 Font: Calibri, 14 pt Bullet color: 128/127/131 Sub-bullets 3, etc. Font: Calibri, 12 pt Alternate bullet/dash Bullet/dash color: alternating 79/111/25, 141/198/63, 128/127/131 Click on the corner of this text box to delete

High Performance Risk Management Model 12 Slide with Two Columns of Body Copy Second Column Text box at 5.08” and 1.89” from top left corner Page Number Font: Calibri, 9 pt Color: 128/127/131 Right-aligned Text box at 8.79” and 7.08” from top left corner Click on the corner of this text box to delete Slide with Two Columns of Body Copy Second Column Text box at 5.08” and 1.89” from top left corner Page Number Font: Calibri, 9 pt Color: 128/127/131 Right-aligned Text box at 8.79” and 7.08” from top left corner Click on the corner of this text box to delete Review strategic plan and perform enterprise risk assessment Develop risk appetite and implement enterprise risk management program Implement stress testing framework Develop and implement risk dashboard Monitor and report risk management performance

Enterprise Risk Assessment Linkage to CAMELS Heat Map 13

Risk Appetite 1.Define risk appetite 2.Implement risk appetite statement with tolerances 3.Link to strategy and growth 4.Embed in the organization 5.Monitor risk management performance 1.Define risk appetite 2.Implement risk appetite statement with tolerances 3.Link to strategy and growth 4.Embed in the organization 5.Monitor risk management performance Risk appetite is the amount of risk that the bank is willing to take in pursuit of value creation. A risk appetite statement should be straight forward and in plain language and contain assertions: Tolerances for each risk bank faces and is willing to take on Expressed in risk measures (e.g. value at risk), nominal measures (e.g. $ amount of credit) or outcomes (e.g. capital levels) Liquidity Risk Example: “We will make sure net short-term liabilities to total assets is less than 20%” “We will limit reliance on wholesale funding to less than 15% of total assets” Liquidity Risk Example: “We will make sure net short-term liabilities to total assets is less than 20%” “We will limit reliance on wholesale funding to less than 15% of total assets” 14

Risk Dashboard Key Risk Indicators (KRIs) Identify for all risks Map to CAMELS Map to Risk Appetite Granular where necessary Compliance Risk Example: Mortgage Servicing sample KRIs - # of loans / FTE in default management - # of Q/C issues - # of past due Q/C issues - % of loans with credit bureau disputes - % of payoffs posted same day - Error rate for SCRA compliance - Avg. days to resolve customer complaints Key Risk Indicators (KRIs) Identify for all risks Map to CAMELS Map to Risk Appetite Granular where necessary Compliance Risk Example: Mortgage Servicing sample KRIs - # of loans / FTE in default management - # of Q/C issues - # of past due Q/C issues - % of loans with credit bureau disputes - % of payoffs posted same day - Error rate for SCRA compliance - Avg. days to resolve customer complaints 16

Five Steps for Success 1. Implement High Performance Risk Management model 2. Implement risk dashboard with suitable KRIs commensurate for risk profile 3. Follow stress testing guidance closely and implement framework with scenarios, sensitivity, enterprise-wide & reverse stress testing) to cover all risks 4. Independently validate stress testing framework 5. Independently measure effectiveness of risk management 18

Closing Slide Header Font: Calibri, 28 pt Color: 85 percent black Subhead Font: Calibri, 16 pt Color: 79/111/25 No Page Number Click on the corner of this text box to delete Closing Slide Header Font: Calibri, 28 pt Color: 85 percent black Subhead Font: Calibri, 16 pt Color: 79/111/25 No Page Number Click on the corner of this text box to delete 20 Thank You. Questions?