27th Risk Management Innovation Platform: AI in Risk? Myths vs Application Frankfurt am Main, May 17, 2018

Background and goalsThe Risk Management Innovation Platform (IP) was founded in 2004 by McKinsey & Company to discuss inno vative ideas and develop them to eventually put them into practice. Very quickly, the IP began to involve prac­titioners from the financial in dus try and academics who regularly engage in inspiring and lively discussions on risk­management­related topics. The IP has since developed into a series of regular meetings in the form of workshops and open discussion forums. Following seven successful years, the IP expanded further in 2011.

It is now jointly conducted with the Frankfurt Institute for Risk Management and Regulation (FIRM) as a contribution from McKinsey to FIRM’s broader plat­form promoting development and research in risk man age ment and the education of young pro fessionals for the German financial sector. The IP is open to all mem bers of FIRM and its academic affiliates.

The IP serves three main goals:

� To connect academia and industry to mutually benefit from an inspiring exchange with participants from diverse backgrounds who provide multiple perspectives and ideas

� To allow participants to present and debate innovative and even provocative risk management concepts in an open environment to further develop ideas, push thinking beyond standard boundaries, and provide inspiration

� To provide an opportunity to get together and network in an informal atmosphere.

Some of the topics discussed in recent years included:

� Cyberrisk: moving from cybersecurity to cyberrisk management

� Fintechs – innovation vs. threat

� IFRS 9 implementation challenges

� The future of European stress testing

� Challenges to capital adequacy ma­nagement approaches under SREP

� Model risk management

The IP takes place twice a year. The half­day session is followed by a joint dinner during which participants have the opportunity to continue their discussions and network. The IP begins with an introductory plenary session to present the topics of the day, followed by breakout sessions to allow for smaller group discussions and open debate. The presentations are explicitly meant to invite open debate and should pose challenging and provocative questions. Joint wrap­ups in the plenary and intermediate coffee breaks allow participants to stay informed on the results of the breakout sessions they were not able to join.

McKinsey & Company is the leading global top management consultancy. Its global Risk Management Practice was founded over ten years ago and currently involves more than 250 dedicated consultants supported by a team of 50 advanced analytics experts and more than 100 partners globally. www.mckinsey.com/business-functions/risk/our-insights

The Frankfurt Institute for Risk Manage­ment and Regulation (FIRM) is an as so­ci a tion of leading German banks, finan­cial service firms and organizations, and the state of Hesse. Drawing on the expertise of Frankfurt’s two universities, FIRM promotes high­ level research and teaching on the subjects of risk management and regulation.www.firm.fm

The IP’s editorial board currently consists of:Andreas Leonhard (BayernLB),Dr. Wilfried Paus (Deutsche Bank),Dr. Martin Knippschild (DZ BANK),Prof. Dr. Natalie Packham (Berlin School of Economics and Law),Dr. Thomas Poppensieker (McKinsey & Company)

Agenda

13:00 Welcome

13:00 ­ 13:30 Introduction of IP concepts and selection of first breakout session Plenary

13:30 ­ 14:30 First parallel brainstorming sessions

� Impact of machine learning on fraud in the financial services sector (Lutz Schiermeyer, Feedzai)

� Yield curve fitting with AI (Dr. Achim Posthaus, Frankfurt School of Finance and Management)

Breakout sessions

14:30 - 15:00 Networking break

15:00 ­ 15:15 Findings of first brainstorming sessions and selection of second breakout session Plenary

15:15 ­ 16:15 Keynote speech

Advanced analytics and machine learning in risk (Tomas Klenke, Commerzbank)

Plenary

16:15 - 16:45 Networking break

16:45 ­ 17:45 Second parallel brainstorming sessions

� Non­financial risk analytics: Contextual analysis / semantic review (Adnan Kuses, Deutsche Bank)

� Application of AI: Effects for financial players and how to manage corresponding risks (Roger Burkhardt, QuantumBlack)

Breakout sessions

17:45 ­ 18:00 Findings of second brainstorming sessions and wrap-up Plenary

18:00 Drinks followed by dinner

27th Risk Management Innovation Platform: AI in Risk? Myths vs Application May 17, 2018 Villa Merton, Am Leonhardsbrunn 12, 60487 Frankfurt am Main

Title, first and last name

Institution, function

Address

Phone (office or private)/e­mail

1. Regarding the planned Risk Management Innovation Platform on May 17, 2018

I will participate (in both the brainstorming sessions and dinner at 18:00)

I will participate, but I cannot join the dinner

I cannot participate

I cannot participate, but a colleague of mine can

Title, first and last name

Function

2. I am interested in presenting an innovative idea

No Yes

Topic

Dr. Thomas PoppensiekerMcKinsey & Company, Inc. Sophienstr. 26 80333 Munich E­mail: innovationplatform@mckinsey.com

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