1. Market Expansion Training Day 1 September 12-13, 2011 RBAP Conference Room, RBAP Building Intramuros, Manila

2. Case for Expansion

3. Case against Expansion

4. Exploring Various Expansion Strategies

13. Market Expansion Training Day 2 September 12-13, 2011 RBAP Conference Room, RBAP Building Intramuros, Manila

14. Microfinance Expansion Strategies

16. Sample MBO Organization

18. Business Risk: “ The level of exposure to uncertainties that the enterprise must understand and effectively manage as it achieves its objectives and creates value ” An EWRM Approach Needs a Context

19. Categories of Business Risks ENVIRONMENT RISK PROCESS RISK INFORMATION FOR DECISION-MAKING RISK Sources of Uncertainty Uncertainties affecting the viability of our business model Uncertainties affecting the execution of our business model Uncertainties over the relevance and reliability of information that supports our value-creation decisions

20. BSP Risk Framework

21. Sources and Mitigation of Risk Risk Area Sources of Risk Risk Mitigating Activities Credit Risk Market Risk Operational Risk Reputational Risk Financial Risk Other Risks

22. BUSINESS STRATEGY BARRIERS TO SUCCESS BUSINESS RISKS Business Risk Source: SGV & Co., 2006 WHAT WILL NOT ALLOW US TO SUCCEED ? CHANGES IN EXTERNAL ENVIRONMENT

23. © 2000 Arthur Andersen All rights reserved. The Business Risk Model TM Source: Arthur Andersen, 2001

24. Increasing Expectations of the Internal Audit Function Greater Business Risks Higher Expectations of Internal Audit Source: SGV & Co., 2006 Technology Advancements Globalization of Operations Rapid Expansion Increasing Competition Speed of Change Fluctuating Market Demands Technology Advancements Globalization of Operations Rapid Expansion Increasing Competition Speed of Change Fluctuating Market Demands