Video & Slides: http://www.proformative.com/events/reducing-risk-dynamic-environment-cloud-0 Understanding and effectively managing financial and operational risk exposures is a challenge faced by companies of all sizes. Finance leaders are increasing taking ownership of risk management at their companies in addition to taking on more direct leadership of company growth initiatives. Discover how Finance leaders from fast-growing start-ups to the Fortune 500 are turning to the Cloud to help them identify, mitigate, and manage dynamic risk exposures across the enterprise, and allowing them to focus more on driving company growth and shareholder value. This webinar will feature a case study detailing how one company has successfully leveraged the cloud in elevating the effectiveness of its risk management programs while subsequently driving successful growth initiatives.

1. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Reducing Risk in a Dynamic
Environment with the Cloud

2. Welcome to Proformative
Proformative is the largest and fastest growing online resource
for senior level corporate finance, treasury, and accounting
professionals.
A resource where corporate finance and related professionals
excel in their careers through:
 Uniquely valuable, online Peer Network
 Direct subject-matter-expert advice
 Valuable Features and Resources
All of it completely noise-free
Check it out at www.proformative.com
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3. Learning Objectives
After participating in this event you will be able to:
 Understand the risk areas exposed in a rapidly changing
economic and business environment.
 Recognize the Finance business goals impacted by change
and risk management
 Identify areas that cloud-based financial applications can
help manage change and risk
© 2013 Proformative. Proprietary and confidential

4. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Reducing Risk in a Dynamic
Environment with the Cloud
Ian Halifax, CMA, CPA
Chief Financial Officer
Host Analytics

5. What We Worry About
• Risk
• Surprises
• Cost
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6. What We Do
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Accounting/reporting
Planning/forecasting
Analytics/intelligence
Regulatory requirements (SEC, SOX)
Taxation
Treasury/cash management
External /internal audit
Investor/BOD relations
Mergers and acquisitions
Systems infrastructure

7. Risk Areas Exposed by Rapid Change
• Control risk
– Inflexible, antiquated systems
– Inadequate audit trails
• Misstatement risk
– Multiple data sources
– Manual process mean higher risk of errors
• Forecast risk
– Data accuracy
– Timeliness – data aggregation versus data analysis
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8. What A CFO Needs
What a CFO Needs
• Efficient and effective processes and systems
• The right, accurate metrics on demand
• Run rapid forecast scenarios
• Flexibility to manage change (e.g. M&A)
• Credible voice
• Ability to move very quickly
• Rapid enterprise application deployment
What Best-In-Class Means
• No surprises
• Right performance on demand
• Powerful early warning system for the organization
• Happy auditors
• CFO sleeps at night
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9. Excel And Email Is Risky
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10. What Is Enterprise Performance Management?
Enterprise Performance Management
(EPM = CPM = FPM ≠ BI ≠ ERP)
Planning
To improve
Insight
Actionable
Analytics
Close
Accountability
Across the org
Speed
Faster processes
Reporting
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11. How Does EPM Reduce Risk?
• Strengthens Control Environment
– Controlled financial consolidations
– Built-in audit trails
• Improves Data Integrity
– Central source of truth
– Lower chance of manual errors
• Enhances Forecasting Capability
– More time for analysis and scenario modeling
– Early warning system: faster and broader visibility of key metrics
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12. But EPM Projects Introduce Different Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Project stalls
Selecting wrong vendor
Budget overruns services
0
10
20
30
40
50
60
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
80

13. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Cloud: Missed target dates
• No more drive-by software selling of large up-front software and hardware
Lack of end-user acceptance
purchases
• Lack of infrastructure means you can start-small, then phase in additional
Project stalls
processes, departments, and users
• Cloud vendors must win your business every year. They are more aligned to
Selecting wrong vendor
meet customer expectations.
Budget overruns services
0
10
20
30
40
50
60
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
80

14. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Cloud:
Lack of end-user acceptance
• No hidden costs
• Predictable Project stalls
ongoing subscription
Selecting wrong vendor
Budget overruns services
0
10
20
30
40
50
60
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
80

15. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Cloud: Project stalls
• Faster implementation, less implementation fatigue
Selecting wrong vendor
Budget overruns services
0
10
20
30
40
50
60
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
80

16. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Project stalls
Cloud:
• Only need a wrong vendor
Selecting browser
• No VPN interruption issues
• Single-sign-on
Budget overruns services
• Consumer-web design
• Clicks-not-code
0
• Drag-and-drop UI
10
20
40
50
60
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
30
80

17. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Project stalls
Selecting wrong vendor
Cloud:
Budget overruns services
• Shorter implementation means less fatigue
• Finance administered, no IT burden
• Less time required of finance to deploy50 60
0 10 20 30 40
70
Percent of total respondents N=226
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential
80

18. The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Project stalls
Selecting wrong vendor
Budget overruns services
Cloud:
• Fast pace of innovation0means cloud vendors can50 60 on product
10 20 30 40 catch-up 70 80
capabilities
Percent on-premises systems means
• Lower upfront cost as compared toof total respondents N=226 lower
switching costs
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19. The Cloud Lowers EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates
Lack of end-user acceptance
Project stalls
Selecting wrong vendor
Budget overruns services
0 10 20 30 40 50 60 70 80
Cloud:
• Lower % of software costs (typically 25-75% rather than 100%-400%)
Percent of total respondents N=226
• Clicks-not-code mean no expensive consultant needed to modify application
Source: BPM Partners “The Pulse of Performance Management 2013”
© 2013 Proformative. Proprietary and confidential

20. Why Software Buyers Choose The Cloud
Why Did You Choose Cloud?
Improved business agility
Improved focus
Speed of implementation
Faster releases
Lower overall costs
OpEx not CapEx
Source: Forrester, April 2012, “The Changing Cloud Agenda”.
Base 920 software decision-makers at firms
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21. Is The Cloud Secure?
• Security, privacy
–
–
–
–
–
No more Excel security risks
No more out-of-date/un-patched software – no wait for patches
Granular security and privacy controls
Regular penetration testing and audits
Encryption
• Service interruption
– Service-level agreements that are typically higher than internal IT
– No disruptive upgrades
– Redundant, geographically distributed data centers
© 2011 Proformative. Proprietary and confidential

22. Consider Platform Risk
“We expect SaaS to become the primary FPM deployment model within three to five years.”
- Paul Hamerman, VP Principal Analyst, Forrester Research
Would you or have you considered a Cloud-based EPM solution?
2012
Cloud
57%
Source: BPM Partners “The Pulse of Performance Management 2013” N=226
© 2013 Proformative. Proprietary and confidential
2013
Cloud
62%

23. Summary
• Excel and email are not ERP/BI/EPM solutions
• Extensive historic EPM deployment
• All enterprise applications are moving to the cloud
• EPM is very much part of this wave
© 2013 Proformative. Proprietary and confidential

24. Thank You
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25. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Reducing Risk in a Dynamic
Environment with the Cloud
Shane Riddle
Manager FP&A
Planar Systems, INC

26. Introduction to Planar
Planar is your choice for Premier
Display Solutions
From desktop monitors to video walls. From
information to inspiration. Industry leaders rely
on Planar’s differentiated digital display
technology for a range of applications.
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27. Introduction to Planar
© 2011 Proformative. Proprietary and confidential

28. Planar Products
ARCHITECTURAL DISPLAYS
LCD VIDEO WALLS
LARGE FORMAT LCDS
REAR PROJECTION VIDEO WALLS
AND IMAGE PROCESSING
DESKTOP & TOUCH
MONITORS
3D DISPLAYS
TRANSPARENT DISPLAYS
Planar products also include open frame and ruggedized displays and luxury home theater projectors
© 2011 Proformative. Proprietary and confidential
OUTDOOR DISPLAYS

29. Planar Products
Clarity Matrix LCD Video Wall
Chesapeake Energy Arena
Home of the NBA’s Oklahoma City Thunder
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30. Planar Products
Clarity Matrix LCD Video Wall
Pavillon De L’ Arsenal — Museum in Paris, France
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Confidential | Planar Systems
30
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31. Three Buckets Of Risks
Financial Risk
Technology Risk
Team Risk
• Missing plan
• Compliance risk
• Confidentiality risk
• Service-level risk
• System failure
• Complexity risk
• Team retention
• Key-man risk
© 2011 Proformative. Proprietary and confidential

32. Turn To EPM Solution To Minimize Plan Risk
Challenge
Solution
• Missing plan
• Surprise miss
• Currency risks
•
•
•
•
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One source-of-truth
Leading indicators
Accountability across the org
Real-time data

33. Turn To Cloud-based EPM To Minimize
Compliance Risk
Challenge
Solution
•
•
•
•
•
• “Audit-as-a-Service”
– SOX compliant
– SSAE-16 Soc 1&2
• Audit trails minimize audit costs
• Strong security
• Lock-down access
SEC Compliance
Yearly process
Audit costs
Weak security with spreadsheets
Highest risk is insiders who have
access to data
© 2011 Proformative. Proprietary and confidential

34. Turn To Cloud-based EPM To Minimize
Confidentiality Risk
Challenge
Solution
• Keep HR and comp info private
• Weak privacy with spreadsheets
• Risk of leakage by internals with
special access
• Lock-down access
• Roll-up info without employee
names
• No internal access
• Fully-encrypted at all points
© 2011 Proformative. Proprietary and confidential

35. Turn To Cloud-based EPM Solution To
Minimize Service-level Risk
Challenge
• Long ERP implementation
• Units flying blind
• Pressure on finance for answers
• Upgrade risks
• Lot of effort to manage
• Quarterly patches for security
updates
© 2011 Proformative. Proprietary and confidential
Solution
• Short EPM implementation
• Bridge transition
• Validate ERP data
• No more upgrades
• No time wasted
• No more patches

36. Turn To Cloud-based EPM To Minimize
System Failure Risk
Challenge
Solution
•
•
•
•
• Cloud infrastructure
– World-class data-centers
– Redundancy
• Service level agreement
• Lower total cost of ownership
On-premises physical system failure
Ongoing hardware requirements
Lots of infrastructure to keep-up
Expensive
© 2011 Proformative. Proprietary and confidential

37. Turn To Cloud-based EPM To Minimize
Complexity Risk
Challenge
Solution
• Managing too many systems
• Requires more IT staff
• Lots of maintenance contracts
•
•
•
•
© 2011 Proformative. Proprietary and confidential
System rationalization
Reduce headcount
Save a ton of money
Reduce complexity

38. Turn To Cloud-based EPM To Minimize
Team Retention Risk
Challenge
Solution
• Exit interviews revealed that
• Provide modern tools and best
antiquated systems contributed to
practices to retain talent
talent churn
• Excited to be analysts again
• Want to be analysts yet sucked into
system dev. work
© 2011 Proformative. Proprietary and confidential

39. Turn To Cloud-based EPM To Minimize
Key-man Risk
Challenge
Solution
• If I get hit by a bus, can someone
pick-it up
• Turn-over is a fact of life
• Chose systems that are easily
learnable
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40. Thank You
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41. Make Note…
Please join us at www.proformative.com to ask any
additional questions and to continue this conversation
with your peers.
If you have questions about CPE Credit, please send an
email to cpe@proformative.com
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42. Sponsor
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