EY Financial Services Advisory A dream job for

EY Financial Services Advisory A dream job for those interested in financial data analytics and international travels MFF UK, November 2015

Agenda ►A few words about our presence ►Examples of our engagements ►Join our team ►Q&A session Page 2 FS Advisory – Career event at MFF UK

EY Financial Services Advisory We bring innovative, high quality and long-term sustainable solutions which move you forward End-to-end complex solutions • We combine expertise in risk management, London prudential and customer protection regulation, finance and business areas with data management and IT enablers to deliver complex end-to-end products New York Our clients • We work closely with all major financial institutions operating in the CSE region • We bring you global view through projects delivered to global banks More than 80 FS focused professionals • Our core team is led by a financial services partner Milan with 80+ professionals • We provide high performers, strong decisionmaking, business acumen technical and industry specialists Rich international network • We share our knowledge and experience throughout the CSE region • Page 3 We actively cooperate with the global EY teams in London and New York FS Advisory – Career event at MFF UK Moscow

EY Financial Services Advisory We bring innovative, high quality and long-term sustainable solutions which move you forward CFO Agenda Risk Management Decision-makers today must plan to manage, mitigate and capitalize on the risks they know, and respond to new risks as they emerge. Our top-ranked risk management professionals help access options and improve processes, and assist with the management of risk as an enterprise-wide discipline. Whether you are facing challenges managing credit risk, market risk, or operational risk or being compliant with prudential and consumer protection regulation, our team is ready to assist you. The finance function affects every corner of the enterprise and today's finance departments are under growing scrutiny. Accordingly, a comprehensive approach to people, processes and technology is needed. As a trusted adviser of CFOs and treasury departments, we work to help you develop or refine the vision of your company's finance function. We focus on processes, cost reductions as well as guidance on accounting process changes and supporting IT initiatives. Planning the balance sheet P&l Capital ratio Liquidity buffer Leverage ratio Business Advisory IT Advisory Technology is a common challenge across multiple functions within an organization. We have a dedicated IT team that provides technology risk, solution enablement, information management and technology security services to assist with e. g. designing, implementing and maintaining secure and high-performance IT environments; , data management and security; vendor selection and quality assurance for third-party system integration; and assessing and improving the way technology enables business processes. Page 4 We understand it is essential to build and maintain effective and efficient operations that support strategic goals, regulatory requirements and emerging demands — all while under pressure to minimize expenses. By providing practical recommendations on how to align, optimize and sustain operating environments, we can help improve and integrate processes and controls, enhance productivity and reduce costs. FS Advisory – Career event at MFF UK

Agenda ►A few words about our presence ►Examples of our engagements ►Join our team ►Q&A session Page 5 FS Advisory – Career event at MFF UK

Examples of our engagements CCAR model validation for big banking group in US Key project challenges New environment • • New regulation (CCAR) • New people to work with (US EY, Bank, vendors) 4 PPEDs 140+ models Limited trust 4 external model developers • 50 – 70 people Page 6 Off-shore cooperation with unknown, CSE team Tight deadlines • • Daily status update calls 6. 000+ (un)read emails Different US market practices (charge-off) 10 M 50 – 100 pages per report FS Advisory – Career event at MFF UK Continuous changes in project scope Increasing capacity demands

Examples of our engagements Quant Hub – co-operation with New York office Model development and validation • • For large US banks You will see the modeling techniques employed in the US The following should be evaluated: • Purpose and use • Theory and design (conceptual soundness) • Inputs • Assumptions • Documentation • Performance checks • Stress scenarios Automatic decision-making and frameworks (when too many models) • R • SAS • SQL Model benchmarking • • • Page 7 A service offered for US banks Compares the development of their portfolio to the other banks Extensive time-series modeling (stationarity, seasonality, autocorrelation, …) Stress testing, backtesting, out-of-sample testing Creativity matters! Ideas are discussed with US managers FS Advisory – Career event at MFF UK

Examples of our engagements Banking, Capital Markets, Insurance, Telecoms, Energy sector… Right team Right approach Right experience Page 8 • Application and behavioral scoring/rating model development • Development/validation of A-IRB models – PD, LGD and CCF models • Loan impairment models (loan loss provisioning) • Collections • Stress testing • Regulatory compliance • Securities and derivatives valuations, Va. R and CFa. R modelling • Asset, liability and liquidity management • Fund transfer pricing (FTP) • Actuarial and Insurance (Life, Property and Casualty, Health) • Business planning and development • Operational risk management strategy, measurement and reporting • . . . And many more FS Advisory – Career event at MFF UK

Examples of our engagements Credit risk projects – study on Loss given default modeling In the figure below we present various LGD modeling techniques already used by EY during our previous projects. Recovery process (including particular recoveries) ► ► ► Survival analysis Regression tree Vintage models Ultimate LGD Exposure at default ► ► Cure event ► Decision trees Recovery process based modeling Los s ► Decision trees Recovery process based modeling Recover y Collateral realization Default Pre-default models Page 9 Months after default In-default models FS Advisory – Career event at MFF UK ► ► Fractional Logit Regression Logistic cut Survival analysis

Agenda ►A few words about our presence ►Examples of our engagements ►Join our team ►Q&A session Page 10 FS Advisory – Career event at MFF UK

Candidate’s profile We seek people having at least the following features: • • • Proactive, self-starter, with “can do” attitude Analytical mindset Prior experience in financial area is beneficial, but not mandatory Prior exposure to data analysis (tools, methods, techniques) is highly regarded Willingness to travel Willingness to work overtime if necessary To get the ball rolling: • • Page 11 Apply online or directly to us Pass the math and English test Complete the Assessment Center (optional for non-Czech speakers) Meet with the management and… welcome aboard � FS Advisory – Career event at MFF UK

Agenda ►A few words about our presence ►Examples of our engagements ►Join our team ►Q&A session Page 12 FS Advisory – Career event at MFF UK

Contact us Ernst & Young s. r. o. Financial Services Advisory Na Florenci 2116/15 110 00 Prague 1 Czech Republic Rostislav Černý, manager +420 225 335 222 | rostislav. cerny@cz. ey. com Ondřej Houška, HR assistant director +420 225 335 065 | ondrej. houska@cz. ey. com Page 13 FS Advisory – Career event at MFF UK