COMPUTER RESOURCE UTILIZATION 0000 3 STAFF TRAINING Legend

COMPUTER RESOURCE UTILIZATION 주식회사 동진디엔씨 전략정보팀 박형관 0000 -3

STAFF TRAINING Legend: Planned/Performed Planned/To Be Performed N/A Not Planned 주식회사 동진디엔씨 전략정보팀 박형관 0000 -6

PROGRAMMATIC COORDINATION Type CRWG ICWG SCCB WGs/Coord Risk Customer Project Teams Staff Actuals/ Quarter Planned/ Quarter 1 0 1 3 2 4 1 1 2 1 4 2 주식회사 동진디엔씨 전략정보팀 박형관 0000 -7

SOFTWARE QUALITY ASSURANCE Legend: Planned/Performed Planned/To Be Performed N/A Not Planned 주식회사 동진디엔씨 전략정보팀 박형관 0000 -8

SOFTWARE QUALITY ASSURANCE, Cont Legend: Planned/Performed Planned/To Be Performed N/A Not Planned 주식회사 동진디엔씨 전략정보팀 박형관 0000 -9

SOFTWARE QUALITY ASSURANCE, Cont Legend: Planned/Performed Planned/To Be Performed N/A Not Planned 주식회사 동진디엔씨 전략정보팀 박형관 0000 -10

PRODUCT READINESS (Fault Profile) 주식회사 동진디엔씨 전략정보팀 박형관 0000 -11

PRODUCT READINES (Breadth of Testing) 주식회사 동진디엔씨 전략정보팀 박형관 0000 -12

COST/SCHEDULE PERFORMANCE 주식회사 동진디엔씨 전략정보팀 박형관 0000 -13

Change Request Figure 5 -5 3/29/ Date _________ Ext. 4942 Phone ________ Y 2 K-Machine Dept. Project _________ CEG Originator ________ Impact Areas Baseline Impact 1. 3 M Deliverable # _____ 1. 313 M Work Package # _____ 1. 31 M Cost Account # _____ IS-M Dept. Organization Unit _____ Scope Contingency Budget X Staff X Schedule X Equipment X Description of change Install Y 2 K compatible chip in six computer controlled milling machines Justification (include impact if not implemented) Reprogramming cost is higher than estimated, and risk of old chips failing is higher than estimated. (Eliminating reprogramming cost is -$10, 000. Cost of Y 2 K chips installed is +$15, 000) Disposition X Priority Approve as amended Disapprove Deferred X Funding Source Emergency Mgmt. Reserve $ _______ Urgent Budget. Reserve 5, 000. $ _______ Routine Other $ _______ S. P Authorized _________ 4/7/ Scheduled start _________ 4/3/ Date ___________ 5/10/ Scheduled finish ________ 주식회사 동진디엔씨 전략정보팀 박형관 0000 -15

Software Work Breakdown Structure Product Hierarchy S Software system(SS) SA Subsystem (SS A ) SAA Subsystem (SSAA ) SAAA Subsystem (SS AAA) SN Subsystem (SS N ) SAM Subsystem (SSAM) SAAK Subsystem (SSAAK) S 1 -S 6 Subsystem (SS) Activities SA 1 -SA 6 Subsystem (SSA ) activities SA 1 -SA 6 Subsystem (SSAA)Activities 주식회사 동진디엔씨 전략정보팀 박형관 0000 -16

Software Project phases, activities & milestones Software development Project Start Product specification Plans & Product Requirements design Programming Detailed Code & design Unit test Integration test maintenance Acceptance plan End product acceptance plan Documentation Configuration management plan Feasibility Organization & Planning Quality assurance Management review SRR PDR S/W Req. Spec. COCOMO Model CDR Product Design. Spec Detailed Design Spec. Code Programming Standards Unit test plan Integ. & test plan Update Acceptance test plan Completion User’s Manuals Update Unit Test Intg. & Test Acceptance test Completion Final Operation and Maintenance 주식회사 동진디엔씨 전략정보팀 박형관 0000 -17

CPM Example TE : 10 F: 5 TL : 15 6 C 10 Start TE : 10 TL : 10 F: 0 D A 6 4 B TE : 6 F: 0 TL : 6 TE : 16/21 TL : 21 G 1 2 4 H 8 11 F: 0 I 23/25 3 F TE : 17/18 TL : 18 End TE : 20 F: 0 TL : 20/22 F: 0 Critical Path : ABDFHGI 주식회사 동진디엔씨 전략정보팀 박형관 0000 -18

COCOMO Estimate COCOMO estimate Planned schedule estimates PERT Chart Summary Task Planning Sheet J F M Effort vs. component activities Project Work Authorization Work Description 1 2 3 WBS Personnel Plan Activity J F M Mr. Kim 주식회사 동진디엔씨 전략정보팀 박형관 0000 -19

DFAS System Life Cycle System Acquisition System Maintenance SLC 6. 0 5/17/02 주식회사 동진디엔씨 전략정보팀 박형관 0000 -20

DFAS System Life Cycle - System Acquisition Pre-Systems Acquisition Concept and Technology Development Decision Review MS A Technology Opportunities and User Needs Business Process Mission Review and Need Improvement Establishment BPA/BPR Report MNS Trade-off Studies ASDP 1 Concept Exploration PM Charter Ao. A IPT Charters COTS Evaluation Report Customer MOU Component Advanced Development Pgm Mgmt Plan Data Mgmt Plan TEMP Econ Analysis 2/ LCCE FRP Decision Review Low-Rate Initial Production System Demonstration System Integration Component Cost Analysis 3 CARD 2 APB (I) Clinger-Cohen Compliance Rpt 2 Full Rate Production and Deployment Operation and Performance Oversight Continuity of Operations Plan APB (F) APB(U) Clinger-Cohen Compliance Report FOC Information Assurance/ Security SSAA V 1 JTA Profile Performance Measurements IOC ORD C 4 I Support Plan System Rqmts Specification Audit Reports PTR Operational Requirements Definition System Requirements Analysis Mgmt Review Activity Product MS C Interim Progress Review MS B Program Planning / Management Acquisition Strategy LEGEND Production and Deployment System Development and Demonstration System Architecture Design Infra. Svcs Request (I) System Arch and Requirements Allocation Desc. SSAA V 3 (incl. Accreditation Memo) SSAA V 2 SSAA V 4 Technical Project Planning / Management Software Development Plan 4 SW Process Improvement Plan 4 Deployment Planning System Development (Build or Purchase) • Development IPT, or • Purchase/Customize/Integrate Product(s) Changes to Deployed System Transition Plans Training Plans Installation Plans Infrastructure Svcs Request (F) Technical Review Audit Test Planning (I) = Initial (U) = Update (F) = Final Developmental Test and Evaluation Test Plans FOOTNOTES Deployment and Site Acceptance Test Operational Test and Evaluation 1 = Only for Programs with < $2 M Total Ownership Cost 2 = Required only for MAIS Programs 3 = Performed by DFAS Resource Mgmt Office 4 = Not applicable to COTS Ongoing Operational / Customer Assessment CM Plan QA Audit Reports Configuration Management / Quality Assurance QA Plan ORD APB TEMP Program Baseline SRS SARAD Functional Baseline SRR Milestone A Decision Rev. Presentation to CIO/BIE Council Milestone B Presentation to CIO/BIE Council SRD SAD 4 SIDD DBDD 4 SDD 4 Allocated Baseline Release Review IPR Presentation to CIO/BIE Council Test Scripts (F) Test Discrepancy Reports Test Reports Compliance Certifications FCA/PCA Checklists COTS Product Description Technical Documentation FCA Site Acceptance Test Reports Product Baseline PCA Per Site IRR Operational Baseline PIR Milestone C FRP Presentation SLC 6. 0 to CIO/BIE 5/17/02 Council 전략정보팀 Council박형관 0000 -21 주식회사 동진디엔씨

DFAS System Life Cycle - Development Alternatives Develop OR Interim Progress Review MS B Purchase / Customize / Integrate Interim Progress Review MS B System Integration Development IPT Purchase/Customize/Integrate Product(s) SW Rqmts Desc. Infra. Rqmts Desc. Test Scripts (I) SW Arch Description Functional Baseline SW Interface Design Desc. DB Design Desc. SW Design Desc SW Interface Design Desc. SW Rqmts Desc. * DB Design Desc. * SW Arch. Desc. * User’s Manual Test Scripts (I)* Operator’s Manual User’s Manual Operator’s Manual SW Design Description * SW Configuration Index Record COTS Customized Product Description * applies to modifications only Unit Test Report Applic. Release Checklist SW Configuration Index Record SRD SAD SIDD DBDD SDD Allocated Baseline Functional Baseline IPR Presentation to CIO/BIE Council SRD SAD 3 SIDD DBDD 3 SDD 3 Allocated Baseline Release Review Milestone B Presentation to CIO/BIE Council COTS Customization Plan Milestone B Presentation to CIO/BIE Council IPR Presentation to CIO/BIE Council LEGEND Mgmt Review Activity Product Technical Review SLC 6. 0 5/17/02 주식회사 동진디엔씨 전략정보팀 박형관 0000 -22

DFAS System Life Cycle - System Maintenance Production and Deployment Requirements / Solution Review Capture and Identify Analyze and Document Capture and Identify Change Request Test Readiness Review Design Review Validate, Approve, and Allocate Design Development Operational TRR Implementation Readiness Rev. Post. Implementation Review Field Validate / Accept Operation and Performance Oversight Program Planning / Management Impact Analysis System Mgmt Plan Measure Effectiveness Customer MOU* Audit Reports Performance Measurements PTR System Change Request (SCR) Information Assurance/ Security Updated Accreditation Memo SSAA* Release Planning Technical Project Planning / Management System Rqmts Specification* System Arch. and Rqmts Allocation Desc. * Infra. Svcs Request* Deployed System Software Development Plan* Development IPT Next Changes SW Rqmts Desc. * Infra. Rqmts Desc. * Test Scripts (I)* SW Arch Desc. * SW Interface Design Desc. * SW Configuration Index Record Developmental Test and Evaluation Operational Test and Evaluation DB Design Desc. * Userss Manual* Operator’s Manual* Test Scripts (F) Unit Test Report Test Discrepancy Reports SW Design Description* Test Reports LEGEND Test Planning Mgmt Review Activity Product Technical Review Test Plans Installation Plans Transition Plans Infrastructure Svcs Request (F) Training Plans Site Acceptance Test Reports Compliance Certifications Deployment Planning Deployment and Site Acceptance Test Compliance Certifications Audit Ongoing Operational / Customer Assessment (I) Initial (U) Update (F) Final * = Change pages, as appropriate FCA PCA Configuration Management / Quality Assurance Changes to appropriate documentation are required at each review to keep baselines current ORD SRS APB SARAD TEMP Program & Functional Baselines SRD SIDD SAD DBDD SDD Allocated Baseline SDD SAD SIDD SCIR DBDD Product Baseline For Corporate-level Change Requests: Review and Approval by CIO/BIE Council For Business Line-level Change Requests: Review and Approval by Business Line Management Board For System-level Change Requests: Review and Approval by System CCB Operational Baseline Per Site SLC 6. 0 5/17/02 주식회사 동진디엔씨 전략정보팀 박형관 0000 -23

I. The majority of banks in the EU is expected to apply the IRB Approach What approach will be chosen by your bank? (Result of a recent survey* at German banks) Still unclear Standarised approach IRB-Foundation approach IRB-Advanced approach Public banks 1) 1) Savings- and Landesbanks Small private banks 2) 2) Balance sheet < 50 billion € Big private banks 3) 3) Balance sheet > 50 billion € * Source: „Deutsche Banken auf dem Weg zu Basel II“, Boston Consulting Group/Universität Witten/Herdecke, December 2002 주식회사 동진디엔씨 전략정보팀 박형관 0000 -24

Understanding of Competitors Size, Growth & Profitability Cost Structure Strengths & Weaknesses Image & Positioning Competitor Actions Exit Barriers Objectives & Commitment Current & Past Strategies Organization & Culture 주식회사 동진디엔씨 전략정보팀 박형관 0000 -25

Five Force Model of Competition by Michael E. Porter Substitutes Suppliers Internal Rivalry Buyers Potential Entry 주식회사 동진디엔씨 전략정보팀 박형관 0000 -26

SWOT Analysis Strengths cost advantages financial resources modern production facilities customer royalty patents Weaknesses narrow product line poor management high operating cost poor financials weak market image leverage ts n i ra Opportunities enter new market add to product line acquire new technology t s n vuln co era bili ty problems Threats changing buyer tastes likely entry of new competitors adverse government policies 주식회사 동진디엔씨 전략정보팀 박형관 0000 -27

Problem Children Cash cows Dogs High Stars Low Market Growth Rate Growth-Share Matrix 10 1 0. 1 Competitive Position (Ratios of Shares to Shares of Largest Competitors) 주식회사 동진디엔씨 전략정보팀 박형관 0000 -28

Market Attractiveness-Business Position Matrix Business Position: Its Ability to Compete Market Attractiveness High Medium Low High 1 1 2 Medium 1 2 3 Low 2 3 3 1: Invest/Grow 2: Selective Investment 3: Harvest/Divest 주식회사 동진디엔씨 전략정보팀 박형관 0000 -29

Risk Matrix Market Attractiveness 1 1 2 Medium 1 2 3 Low 2 3 3 Low isk l. R ta nm en En 1: Invest/Grow 2: Selective Investment 3: Harvest/Divest vi ro w M ed i um H ig h High Medium Lo Business Position: Its Ability to Compete 3 High 주식회사 동진디엔씨 전략정보팀 박형관 0000 -30

3 -Dimensional Approach n Transaction : Start of 3 -Dimensional Approach Example “One Transaction” l Risk Side Process/Product Side SBU/Customer Side Equity Trading Transaction w w w Equity Price Risk Position Allowed per Trading Process w w w Va. R Limit Trading Position Limit per Trader Stop-Loss Limit on Trading 주식회사 동진디엔씨 전략정보팀 박형관 0000 -31

3 -Dimensional Approach n Aggregation of Transaction Bank-wide Business Strategic Business Area One Transaction Bank’s Risk Universe Process/Product Total Risk Appetite 주식회사 동진디엔씨 전략정보팀 박형관 0000 -32

Limit Structure Check-List 1. Generated from bank’s unique ‘Risk Universe’ 3. Limit type should not stick to simple volume. Most of limit type is relating to ‘Risk Measure’. Capital Allocation Risk & Source Risk Market Risk Equity Capital Risk Allocation Weight Source Limit Type Limit Terms Allocation Level Time Term Limit Basis Book Intra Over SBU Team Month Trader Day Night Trading Volume, Va. R Investment Volume, Va. R Stop Loss Limit Monitoring Concen Qualifi Counter Real tration cation Party Time Day Week Month 2. Whole range of capital allocation should be within ‘Risk Capital’ 4. Limit terms are related to ‘Risk Attribution’. 5. Limit monitoring should be set based on ‘Risk Attribution & ‘Risk Prioritization’. 주식회사 동진디엔씨 전략정보팀 박형관 0000 -33

Limit Structure (Example) Capital at Risk Limits Credit Limits Country Limits Credit at Risk Limits Industry/ Group Limits Total Expos. Limits Counterparty Limits Market Limits VAR Limits Product / Position Limits Settlement Limits Open Position Limits Liquidity Limits Stop-Loss Limits Guarantees & Other Contingencies Loan Equivalent Exposure Equity FX & Derivatives Firmwide Individual Risk Index Risk Intraday GAP Structural Interest Rate Risk DUR. GAP NII at Risk Trading Duration O/N Term FX PVBP Local CCY Options Delta Benchmark Bond Position CCY 1 CCY 2 Gamma Time Bucket Liquidity Ratio Limit Liquid Asset Holding Requirement Product Liquidity Limits Investments Time Gap Limits Liquidity GAP Limits Liquidity Position Limits Loans Liquidity Limit for Investment & Trading Group/ Fund Level Dept. Level Desk Level Trader Level : : Vega Liquidity Guideline for Underwriting 주식회사 동진디엔씨 전략정보팀 박형관 0000 -34

Strategic Usage of Limit Cube Business Policy & Strategy Marketing & Customer Management Customers Markets RAROC/ SVA Customer Information Transaction Product Development Pricing Market/Portfolio Strategy Products Market/Product Information Transaction Groups Transaction Integrated Measure Biz. Units Performance Trader Evaluation & Remuneration Performance Measurement Information Risk Factors Portfolio Effect Capital Allocation Limit Management Risk Control Internal Control Information 주식회사 동진디엔씨 전략정보팀 박형관 0000 -35

Limit Usage Management n n Practically SBU’s position limit is allocated more than Bank-wide Risk Limit. It accelerate limit bidding & resource acquiring process. Real resource allocation is dependent on business prioritization. Sometimes business unit can not use full allocated limit, because of bank-wide limit is already used by other business unit. However, if required, RMC can enlarge initial ‘Bankwide Risk Limit’. Bankwide Risk Appetite Bankwide Risk Limit << 300 Total Allocated Limit = 300 Actual Total Limit Usage < 300 Limit Buffer 100 Allocated Limit Usage Business Unit A Business Unit B Business Unit C 주식회사 동진디엔씨 전략정보팀 박형관 0000 -36