Enabling traceability and transparency with standards-based regulatory reporting Dr. Said Tabet Senior Technologist and Industry Standards Strategist Office of the CTO, EMC Corporation

2© Copyright 2013 EMC Corporation. All rights reserved. Agenda EMC: a few words Regulatory reporting and the data issue Struggling with Ownership/Stewardship and their silos Regulatory reporting: more than just a compliance exercise Leveraging your reports for business performance and insights Summary Key insights from what we are seeing with our partners in the market

3© Copyright 2013 EMC Corporation. All rights reserved. Brands Fortune 500 Rank (2011 revenues) 139 Barron’s 500 Rank (2011 performance) 12 Revenues$21.7Bn Cash and Investments (12/31/12) $11.4Bn Market Value (2/6/13) $52.5Bn Employees in 86 countries Years in operation34 EMC, VMware, RSA 60,000+ EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT-as-a-Service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping organisations to store, manage, protect, and analyze their most valuable asset, information, in a more agile, trusted, and cost-efficient way.

4© Copyright 2013 EMC Corporation. All rights reserved. Global Regulatory Reporting: Problem Statement The Problem of multiple regulations and multiple jurisdictions is complex and increasing Business and IT –Struggling with ownership/stewardship and their Silos Data and XBRL’s Metadata Management –Quality, Consistency, Integration, Common data model –Efficiency and Timeliness of the collection process Compliance and Risk Taxonomy Absorption –Consumption, rendering, and secure archiving needed –Vocabulary, definitions and cross-enterprise alignment

5© Copyright 2013 EMC Corporation. All rights reserved. Regulatory Reporting – the challenge SOURCE: OCEG Illustrated Series

6© Copyright 2013 EMC Corporation. All rights reserved. A transformational opportunity for stakeholders Current State Fragmented silos Mostly reactionary Individual projects Separate from mainstream processes and decision-making Spreadsheets, spreadsheets, spreadsheets Limited and fragmented use of technology SOURCE: OCEG Illustrated Series Future State Integrated management & performance Proactive planning & execution Integrated capability Embedded within mainstream processes and decision-making Coordinated transactions & shared data Architected solutions

7© Copyright 2013 EMC Corporation. All rights reserved. What is going on in IT? Source: Forrester Research, Inc., IT Budgets and Priorities 2013, 25 April, %Maintain 28% Invest

8© Copyright 2013 EMC Corporation. All rights reserved. The Business Drivers

9© Copyright 2013 EMC Corporation. All rights reserved. Instead Of ‘Build Many - Report Many’ (c) OCEG Illustrated Series Regulation ARegulation BStandard C A1A2A3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 Discrete Risks, Regulations & Standards Discrete Requirements Discrete Controls & Activities Siloed Functions & Departments B1B2B3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2C3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 No Linkage Weak Linkage

10© Copyright 2013 EMC Corporation. All rights reserved. Full Linkage Strong Linkage The Future is – ‘Build Once Report Many’ Regulation ARegulation BStandard C A1A2A3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 Discrete Risks, Regulations & Standards B1B2B3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2C3 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 AB1 C1C2 C3C4 C5C6 C1C2 C3C4 C5C6 Common Requirements Common Controls & Activities Integrated Functions & Departments (c) OCEG Illustrated Series

11© Copyright 2013 EMC Corporation. All rights reserved. Managing the prudential data supply chain National Service Agency Supervisor HQ Top Management Syndicate Supervisor of supervisors Line of business National Service Agency Line of business Aggregated/summarized data Further aggregated/ Summarized data A need to ensure consistency? Full set of data Internal Reporting - ERM External Reporting / Prudential - National Prudential – European Level

12© Copyright 2013 EMC Corporation. All rights reserved. What could this look like for you? Build once, report many; provenance of data is key Quantitative Qualitative Disclosure Analytical Models Workflow Tools Submission and archiving capabilities DATA REGULATORS DATA Review, Approve, Archive Analyse data MDM, ERM, eGRC XBRL Format, validate

13© Copyright 2013 EMC Corporation. All rights reserved. Convergence of key standards... Including:  XBRL Taxonomies and Extensions  Legal Entity Identifiers (LEIs)  Open Data Initiatives, Linked Data  GRC-XML, as an XBRL Taxonomy for GRC  Financial Industry Business Ontology (FIBO)

14© Copyright 2013 EMC Corporation. All rights reserved. Summary Benefits of adopting XBRL – Regulatory reporting costs significantly lower for future periods – Data mapping for any given regulator effectively done – Enhanced accuracy and quality of data Enhanced Transparency with: – Visibility Easy to capture errors, violations & problems – Simplicity Reduce regulatory burden/cost – Provenance/Traceability Easy to drill down to the source(s) of data – Consistency Trust your Regulatory Reports when you have a trusted supervision framework

15© Copyright 2013 EMC Corporation. All rights reserved. Thank You