® ifb Annual 2008-17.09-RZ-PROOF_Innenteil_E.indd - ifb AG

07/08
ifb Annual 07/08
Transparency

ifb Annual 07/08 2
Revenue/Employees Range of Services
70,0
60,0
50,0
40,0
30,0
20,0
10,0
0
500
400
300
200
100
0
Revenue of the ifb group (Mio. EURO)
2003 2004 2005 2006 2007
Employees of the ifb group (at the end of the year)
2003 2004 2005 2006 2007

Expert conception
and implementation
Banking
Software
and introduction
Expert conception
and implementation
Insurance
Software
and introduction
Expert conception
and implementation
Corporates
Software
and introduction
Total Bank Controlling
Sales Management/Intensifi cation
Business Segment Accounting/Planning
Productivity Management
Return Management
Trade/Treasury
Risk Management/Controlling
Reporting System/Supervisory Law
Accounting
Financial Strategy
Merger/Restructuring
Internal Auditing
Reporting
Forecasting/Budgeting
Core Banking Systems
IT-Strategy
Organisation/Processes
Partner products and
additional solutions
In-house products
Actuarial Practice
Capital Assets
IT-Strategy
Organisation/Processes
Risk Management /Controlling
Reporting System/Supervisory Law
Accounting
Reporting
Internal Auditing
Forecasting/Budgeting
Partner products and
additional solutions
In-house products
Risk and Strategy Management
Planning and Controlling
Process and Cost Management
Corporate Governance and Compliance
Reporting
IT-Performance and IT-Infrastructure
Treasury Management
IT-Strategy
Organisation/Processes
Business Performance Management
Accounting
Reporting
Partner products and
additional solutions
In-house products ifb-OKULAR ®
ProKoRisk ®
ARIS
egip
Microsoft
SAP Balance Analyzer, PAIA, Hedge Management
SAP Bank Analyzer, SDL, Data Load Management
SAP Basel II Solution, Limit Manager, GRC
SAP Deposits Management, SAP ERP, Loans, CMS
SAP SEM Banking
Products for
CRM
ERP
Accounting
Reporting
BPM (Hyperion, BO Finance, SAP-BPC)
Auditing
Treasury and Trade
ifb-OKULAR ® Total Bank Controlling
ifb-OKULAR ® IFRS
ARIS
Microsoft
Process 2
SAP Products, IFRA
Additional products for
ERP
Accounting
Reporting
Auditing
ifb-OKULAR ®
ProKoRisk ®
ARIS
egip
Microsoft
Process 2
midlake ®
SAP Produkte, GRC
Additional products for
ERP
Accounting
Reporting
ifb Annual 07/08 3

ifb Annual 07/08 4
Contents
Contents
Foreword
6 Introduction by the Chairmen of the Supervisory Board
8 Letter to our business partners
Interview
10 “Risk management should not blank out any relevant factor“
Prof. Axel A. Weber, President of the Deutsche Bundesbank talks to Claus Stegmann,
ifb group Partner and member of the ifb AG Executive Board
Business Intelligence Technology
14 Ten questions put to Marco Kiernan, head of the new
ifb group service line ‘BI Technology‘
Banking
16 Total solution for controlling, reporting and planning
Hartmut Görlitz, Ulrich Steinhauer, LBS Norddeutsche Landesbausparkasse Berlin-Hannover
Ralph Beckers, ifb group
18 Liquidity at Risk: liquidity risk under control
Dr. Bernd Walter, Kasseler Sparkasse
Swetlana Reykhrudel, ifb group
20 Integrated counterparty risk measurement on the basis
of a hybrid model
Thomas Rempel-Oberem, ifb group
22 The challenges of a transactional banking project – akin to replacing
an aircraft engine in mid-fl ight
Jürgen Mauk, ifb group
24 Communication and documentation requirements necessitate
a change in paradigm
Dr. Rainer Merkt, Marek Ristock, ifb group
26 Subprime crisis as a case in point: how stress tests create
liquidity risk transparency
Dr. Adrian Ainetschian, Tobias Richert, ifb group

28 European Bank for Reconstruction and Development
optimises limit systems
Olaf Weick, ifb group
30 Governance, risk and compliance in banks:
transparency in risk management – Pillar 2 as a GRC initiative
Ralf Huff, Dr. Kai-Oliver Klauck, ifb group
Insurance
32 Professional management of operational risk
Börge Thiel, ARAG Rechtsschutz
Lars Tybussek, ifb group
34 Insurance company ‘Versicherungskammer Bayern‘ to implement
IFRS accounting as of 2009
Hannes Polit, ifb group
36 Preparations for Solvency II begin with the 9th amendment
of the Insurance Supervision Act (VAG) and MaRisk (VA)
for insurance
Nicole Fopma, Thomas Rauschen, ifb group
Corporates
38 E.ON as a fi nancial service provider –
the path to obtaining a licence in accordance with MiFID
Dr. Jochen Handke, E.ON Energy Trading AG
Carsten Freilinger, ifb group
40 Governance, risk and compliance in a mechanical
engineering company
Willy Holtkamp, ifb group
42 Incorporating individual requirements within risk management
Carsten Spieck, Hamburg Port Authority
Holger Kruse, swb Erzeugung GmbH & Co. KG
Manuela Nuhn, Lars Tybussek, ifb group
46 The evolution of business intelligence
Michael D. Hoffmann, ifb group
Insight
48 International activities
50 07/08 events
52 Selected projects
55 Milestones
ifb Annual 07/08 5

ifb Annual 07/08 6
Introduction by the chairmen of the Supervisory Board
Management change based on success
and continuity
The ifb group has continued its successful course
throughout the past fi nancial year, in turn, clearly
demonstrating the company’s exemplary
continuity in terms of growth and development in
performance from both a technical and business
perspective. Today the company enjoys an excellent
reputation throughout Europe and beyond, and
is considered an extremely capable partner by the
fi nancial sector and industrial, trade and service
companies alike. The ifb group has continued to
develop its activities with great success in the core
areas of controlling, accounting, risk management,
supervisory law and core banking. Moreover, the
company has successfully used this foundation to
reinforce its position as a provider of software,
consulting and SAP services on an equally sustainable
level, not least through its close networking
with corporate partners such as SAP AG. This overall
development is refl ected in the impressive results
achieved in the last fi nancial year. As compared to
the previous reporting period, consolidated turnover
was successfully increased by 23% to EUR 59.4
million, while maintaining an unchanged healthy level
of profi t. One important change that took place
at corporate management level was the withdrawal
for personal reasons of Dr. Walter Herzog from his
position on the ifb AG Executive Board following 18
years of successful development work. Dr. Herzog
will, however, remain active as a partner and consultant
to the company and its clients. I would like
to take this opportunity to once again express my
heartfelt thanks for all his efforts, without which
ifb AG would not exist in its present form.
With its consulting services and software products,
the ifb group is at the forefront of current developments,
enabling us to provide our clients with
a decisive competitive edge. The ifb group service
portfolio offers companies from all sectors of business
reliability in achieving integrated processing
of the most exacting tasks pertaining to business
management, statutory provisions and supervisory
law. Ensuring the further development of this
strength forms the focus of our corporate strategy;
whereby the ifb group endeavours to achieve
maximum fl exibility in relation to the continuing
requirements of its clients.
Helmut Späth
Chairman of the ifb AG Supervisory Board (as of 1 July 2008)
The company organises its structures to allow it to
offer a package of highly specialised services and
products that are precisely tailored to individual
needs. Some time back I decided to retire from
my position at the head of the ifb AG Supervisory
Board upon reaching the age of 75 and I am delighted
to be able to conclude my task with a comprehensively
positive status report. At the request of
members of the Supervisory Board and the group
of partners I will nevertheless continue to be a
member of the board in the capacity of honorary
chairman.
On 8 April 2008, Mr Helmut Späth, deputy chairman
of the Versicherungskammer Bayern Executive
Board was appointed the new chairman of the ifb
AG Supervisory Board with effect from 1 July 2008.
Mr Späth has already been advising the company’s
most senior steering committee since 2006, which
has provided us with the opportunity of ensuring
careful preparation for the subsequently effected
change in management. I would like to express my
special thanks to Helmut Späth for his willingness
to apply his extensive knowledge and longstanding
management and committee experience to this
important position in the future.
I would like to wish him the very best of luck and
success in his capacity as the new chairman of the
ifb AG Supervisory Board and, as chairman of the
ifb International AG Administrative Board, I very
much look forward to being able to continue working
together with him.
Horst Will

Horst Will
Chairman of the ifb AG Supervisory Board (to 30 June 2008)
Chairman of the ifb International AG Supervisory Board
I would like to begin on a personal note by stating
that, as a company stalwart, Horst Will has played a
major role in providing the fi nancial industry with
state-of-the-art management processes, products
and services. At a very early stage, he recognised
the requirement for and potential of information
technology in terms of the application of new business
methods and shaped this recognition into the
basic concept of a corporate group that has since
made a signifi cant contribution to the dissemination
of future-orientated management concepts.
I am delighted to be able to take up the position
of chairman of the ifb AG Supervisory Board as his
successor.
In its capacity as an international software and consulting
provider, the ifb group strives to assist its
clients in achieving optimal structuring of their value
chain, from development of the corporate strategy,
new products and services, through to the fi ner
points of technical implementation. Today, thanks
to its Controlling, Accounting, Risk Management,
Core Banking and Legal Reporting competence
centres, the company is a leading international
partner in all technical, organisational and information
technology issues that concern the progressive
structuring of company fi nance departments.
Exemplary client proximity is the precondition that
allows this strength to be exploited to the full, and
it is in light of this aspect that the infrastructure of
the branches within ifb group target markets will
continue to be developed. Their task is to provide
solutions supported by the group’s entire service
portfolio that distinctly fulfi l the needs of individ-
ual companies and local markets, while affording
consideration to specifi c national legal framework
conditions and the cultural characteristics of the
market environment.
As members of the ifb AG Executive Board, Claus
Stegmann and Christian Moser are at the forefront
of this strategic development. Moreover, in their capacity
as directors of ifb International AG, they are
also responsible for systematic development of the
consulting and software markets in France, Austria,
Luxembourg, Switzerland, the Central Eastern European
countries, the Americas and Asia. In addition,
within the scope of the BPMI network (Business
Performance Management International), we also
enjoy excellent international representation in
many other countries, particularly those of Western
Europe. Today, the ifb group is synonymous with
sustainably high performance at the cutting edge
of economic and technological requirements. The
company’s interdisciplinary alignment, its leading
role in terms of technical development and its culture
of partnership-based and solution-orientated
teamwork make it an attractive employer, giving
rise to a high level of commitment. This indeed
places us in an excellent position for the future.
I would like to offer my sincere thanks to our clients
for their continuing trust, which is refl ected in the
success of the past fi nancial year. At the same time
I would also like to express my personal thanks to
the management and all the employees of the ifb
group.
Helmut Späth
ifb Annual 07/08 7

ifb Annual 07/08 8
Letter to our business partners
Growth based on resolute client focus
Johannes Balling
Partner, ifb Suisse AG
Claus Stegmann
Partner, Member of the ifb AG Executive Board
In the ifb Annual Report 07/08 we would like to
present you with an up-to-date insight into the
projects that we are currently undertaking together
with our clients. These demonstrate that transparency
– namely, the availability of up-to-date,
consistent and reliable information – is not just
some abstract demand. Rather, transparency paves
the way for successful implementation of business
strategies. Supporting companies in the achievement
of this goal forms the focus of our activity.
As a consultant and software provider, the ifb
group is enjoying a stable course of growth and
counts amongst the leading specialists for integrated
corporate, fi nancial and risk management. We
offer our clients cutting-edge, customised total
solutions that guarantee exemplary information
and resolution quality. Our solutions are realised on
an “end-to-end” basis – from the specifi c management
concept, through to process structuring and
implementation of information technology.
The ifb group is systematically expanding its range
of services in the areas of governance, risk and com-
Volker Liermann
Partner, ifb AG
Christian Moser
Partner, Member of the ifb AG Executive Board
Christoph Servaes
Partner, ifb AG
pliance, risk/opportunity management and business
intelligence technologies. We are also placing
particular emphasis on potential-based corporate
management, audit-related consulting and integrated
group reporting. Integrated total bank management
with ifb-OKULAR ® is being further developed
in close coordination with cooperative, public and
private banks. Moreover, in addition to the existing
analytical focus, the SAP for Banking business
unit has been extended to include transactional
banking, EAP fi nancials and real estate. Expansion
of our central resources and capacity development
through nearshore and offshore projects further
complement these moves.
In addition, the ifb group is also focussing on
specifi c challenges being encountered within the
insurance industry and is expanding its client base
beyond the fi nancial services sector by providing
progressive management solutions. The success of
group-specifi c risk/opportunity management solutions
using ProKoRisk ® underlines the attractiveness
of our integrated consulting and software services

Tanja Attermeyer
Partner, ifb AG
Thomas Reichert
Partner, ifb AG
in this area. The range of services has also been
further enhanced through additional capacity in relation
to the client-specifi c evaluation, selection and
implementation of business intelligence systems.
These developments refl ect a corporate strategy
targeted at providing optimal support during each
and every phase of our clients’ value chains. The ifb
group is continually increasing its core know-how in
the fi eld of fi nance and management, while simultaneously
and systematically extending its expertise
to new corresponding subject areas. The constant
growth of our client base in the banking sector,
insurance industry and in the area of industrial,
trade and service companies is a clear refl ection of
the effectiveness of this strategy. The specifi cally
driven and sector-related growth of the ifb group is
matched by targeted expansion in new geographical
markets, with the emphasis on North and South
America, Eastern Europe and France. In this respect,
development of market potential is founded on the
establishment of regionally operating companies
located in close proximity to their clients that are
Christian Moser
Member of the ifb AG Executive Board
Oliver Greiner
Partner, ifb International AG
Klaus Wiegand
Partner, ifb AG
Dr. Walter Herzog
Partner, ifb AG
able to offer the entire range of ifb group services.
Throughout the past fi nancial year, the ifb group
has achieved compelling results and is excellently
placed to maintain further successful growth in the
long-term. Against this backdrop, we look forward
to the intensive teamwork with Mr Helmut Späth,
who will be at the helm of the ifb AG Supervisory
Board in future. At the age of 75, Mr Horst Will
steps down from his position as chairman of the
Supervisory Board and has subsequently been appointed
honorary chairman of the same board. Over
a period of two decades, he has decisively characterised
the development of the ifb group through
his entrepreneurial experience, decision-making
strength and sound judgement and will continue to
make his comprehensive know-how available within
the capacity of his new position. We extend our
heartfelt and personal thanks to him.
On behalf of the partners and employees of the ifb
group, we would like to thank you for your interest
in our efforts and trust you will fi nd the reading
informative!
Claus Stegmann
Member of the ifb AG Executive Board
Steffen Hortmann
Partner, ifb AG
ifb Annual 07/08 9

ifb Annual 07/08 10
Focus Discussion
“Risk management
should not blank out
any relevant factor
Prof. Axel A. Weber, President of the Deutsche Bundesbank, talks
to Claus Stegmann, ifb group Partner and member
of the ifb AG Executive Board

Stegmann Professor Weber, we
are delighted that you have taken
the time for this interview and
would like to extend a warm welcome
to you here in Cologne. At
the G7 spring summit in Washington,
a number of important decisions
on the way to go forward
were taken. What were the key
aspects of these?
Weber In my opinion, the milestone
of the G7 summit was acceptance
of the Financial Stability
Forum report, which presents
purposeful and realistic proposals
on improving the stability of
fi nancial markets. This means
that the market players are called
upon to assume responsibility for
improving risk management. In
particular, this concerns liquidity
risks, measurement practice,
disclosure requirements and
transparency. As a second group,
the rating agencies are also in the
spotlight, with the recommendations
being specifi cally directed at
avoiding confl icts of interest and
drawing up a code of conduct.
In Washington, we agreed that
Basel II should now be introduced
globally, including in the USA,
with the utmost immediacy. At
the same time, shortcomings
in the regulations that became
apparent during the turmoil in
the capital market have to be
resolved.
Stegmann Have developments
since the summer of 2007 given
rise to an increased willingness to
achieve a uniform body of global
supervisory regulation?
Weber From the outset, the aim
of the regulators was to create a
global equity capital standard in
the form of Basel II. And I think
there is a growing insight
amongst all participants that
regulatory arbitrage and regulatory
differences within a global
context should be avoided. But
that is not just a problem of
capital standards. There are still
differences in accounting standards
between both sides of the
Atlantic, for example. The Basel
Committee and the Financial Stability
Forum (FSF) will be submitting
proposals on this issue. What
is important, however, is that,
in the midst of resolving the turbulence,
we do not start to tackle
the amendment of accounting
standards that are designed to
create transparency. The principle
of fair value accounting enhances
transparency and, essentially, this
should not be called into question.
Nonetheless, we must pay
attention to ensuring that specifi c
provisions do not reinforce the
procyclicality of the events.
Stegmann In this respect, the
question arises as to the actual
role played by mark-to-market
when market prices are indicators
rather than traded prices, as we
have seen in the subprime crisis.
Indeed, relevant options are
being discussed in the accounting
committees.
In Washington we agreed that
Basel II should now be introduced
globally, including in the USA,
with the utmost immediacy.
Weber These options already
exist now with the three levels
of accounting in the IFRS. The accounting
system offers suffi cient
options that must be applied by
auditors in cooperation with the
fi nancial institutions. I have the
impression that some institutions
often do not have suitable
models available to enable them
to make their own assessment of
such assets. In those cases, it will
be a matter of having to concentrate
on indicators available in
the market, like credit indices, for
example.
Stegmann In recent years, the
banking industry has been called
upon to implement new accounting
and reporting methods
which are, in fact, giving a very
positive impetus to internal controlling.
By contrast, the subject
of liquidity management has
been tending to play more of a
subordinate role for some years
now.
Weber Basel II provides a number
of starting points in that respect,
too. The Supervisory Review Process
(pillar 2 of the Basel II framework)
allows supervisory bodies
to take a more proactive stance
in terms of banks’ risk management.
The provisions concerning
off-balance-sheet assets in pillar 1
are a further improvement in this
respect. The structural weakness
of many off-balance-sheet
structured investment vehicles
lay in the fact that, frequently,
long-term assets were held, while
refi nancing was effected in the
short-term through commercial
paper. This construction was secured
by the banks’ liquidity commitments,
which, owing to their
short maturities, were not subject
to the Basel I capital requirements.
Sensible risk management
by the banks should never blank
out any risk-relevant factor that
can go through the liquidity line
and come back to the bank as a
contingent liability. In addition,
as early as this summer, the Basel
Committee on Banking Supervision
will be presenting sound
practices for the management
of liquidity risks. The national
regulatory authorities will then
be required to implement these
standards.
Stegmann In implementing
Basel II, a certain amount of deleveraging
on the part of the
banks has been apparent.
However, the turbulence came
too soon; indeed, a reduction in
borrowing should really have
occurred in 2007 with the introduction
of Basel II.
ifb Annual 07/08 11

ifb Annual 07/08 12
Focus Discussion
Weber Basel II focuses on and
resolves many problems that we
have been dealing with since the
summer of last year. Nonetheless,
we have been forced to concede
that the implementation of
Basel II in Europe and the USA
has taken far too long. Ultimately,
as a result of the transitional
periods, for the overwhelming
majority of German banks
Basel II only took effect at the
start of 2008.
Stegmann One important question
is how far the crisis in the
capital markets is spilling over
into the economy as a whole.
Weber In the US market, we are
seeing a clear negative impact
that is also affecting the pace of
economic activity. Lending in the
US has become appreciably more
restrictive. In Germany, we have
not yet witnessed any marked
adverse effect on lending. In
particular, with respect to what
is possibly Germany’s most
important sub-market, namely
small and medium-sized business
loans, we are not seeing any
signs of a tightening in lending.
Indeed, at present, the banking
industry is clearly focusing on
the German SME sector, with this
market segment being contested
accordingly. This gives cause for
hope that the repercussions of
the fi nancial market turbulence
for the German economy will not
be so severe.
Stegmann Germany is often
described as being ‘overbanked‘.
At the same time, foreign banks
are increasingly forcing their way
on to the German market. In your
opinion, how will these factors
impact on both retail customers
and the cooperative and savings
banks?
Weber Within the three pillars
of the German banking system,
a considerable amount of consolidation
has taken place amongst
the private banks, public banks
and cooperative banks. Despite
its comparatively rigid structure,
the German banking market is
one of the most competitive bank-
Claus Stegmann
ing markets in Europe. A number
of major international players
have forged a strong position in
Germany within the domain of
retail banking, for example, by
means of Internet banking. This
competition will continue. The
German market also appeals to
foreign banks on account of the
strength of the German economy
and the very strong export performance
of the SME sector.
Stegmann During the past 12
months, in particular, there have
been a number of occasions in
Germany where the Bundesbank,
the Federal Financial Supervisory
Authority (BaFin) and political
protagonists have had to take
very decisive joint action.
Weber The supervisory authorities
have to take action very
quickly in the event of problems
arising concerning the solvency
of an institution, irrespective of
whether the situation involves
a private, public or cooperative
bank.
We still need progression
on the subject of hedge funds
and unregulated market
participants.
Stegmann Nonetheless, a private
bank cannot go to the capital
market in the same way as an institution
that is protected against
risk by the public sector. Potentially,
this also raises the question
of how the EU assesses such risk
protection.
Weber Naturally, in its capacity as
a competition authority, the European
Commission will examine
recapitalisation measures by the
owner in the light of the rules

Prof. Axel A. Weber
on government assistance. I do
not wish to pre-empt this issue.
However, this is not the priority
for the supervisory authorities in
cases where a bank is threatened
by a moratorium. For us, the
systemic stability and systemic
relevance of the institution in
question is of prime importance.
Our fi rst concern is always the
issue of how to ensure an orderly
procedure that does not pose any
risks to the system.
Basel II aims to ensure
consideration of all risk-relevant
factors, including those of capital
adequacy.
Stegmann Returning once again
to Basel II: will there be a refi ne-
ment of the existing methodology
for assessing the risk weights
in lending business?
Weber In comparison with Basel I,
the new Capital Accord remedies
shortcomings, particularly in
the area of securitisation which
became apparent in the light of
the current market turbulence.
Nonetheless, there will be technical
adjustments with regard
to weighting approaches and
conversion factors. The treatment
of certain trading book risks will
also be reviewed.
Stegmann Where do you see
further weaknesses?
Weber We still have to make
headway with regard to hedge
funds and unregulated market
participants. The British hedge
funds have given themselves a
code of conduct which implements
much of what we called for
last year at G7 level. A number of
aspects of the rating process have
to be discussed. For example, the
rating agencies have not only
evaluated the structured products
but, as consultants to the investment
banks, have also played a
part in engineering these products.
This represents a clear confl
ict of interests. There will have
to be an attempt to eliminate
such weaknesses by means of a
separation of functions or by the
introduction of more stringent
regulations on good conduct. In
my opinion, there was a very large
number of longstanding weaknesses
in the international capital
markets. Those weaknesses were
obscured by the exorbitant rates
of growth. During this period,
specifi c proposals failed to gain
political acceptance or were not
even considered by those concerned.
For example, in consultations
with the IASB, the central
banks repeatedly criticised the
procyclicality of some accounting
standards. Moreover, the attempt
under Basel II to address certain
other shortcomings was considered
to be such a far-reaching
encroachment that it led to a
delay in the introduction of
Basel II. It is now clear that an
earlier introduction would have
been the right move.
Stegmann Indeed, one new
insight was the effects caused by
the interplay of credit and liquidity
risks. Last July, there were no
losses that could have triggered
the volatility. Combined with the
liquidity risks, the assumption
alone was suffi cient to set the
ball rolling.
Weber The risk management
system should not blank out
risks occurring off the balance
sheet, and Basel II aims to ensure
consideration of all risk-relevant
factors, including those of capital
adequacy. This is an issue that
we have been discussing for fi ve
years and the new regulations
undoubtedly offer more opportunities
to call for this in specifi c
terms, too.
Stegmann Professor Weber, thank
you very much for this interview.
ifb Annual 07/08 13

“Business Intelligence is becoming omnipresent
in corporate life”
Marco Kiernan
ifb group
ifb Annual 07/08 14
Business Intelligence Technology
Services
Project Management
BI Training
Infrastructure
BI Strategy
BI Strategy Implementation
Business Process
Intelligence
Service Oriented
Architecture
BI Software
Reselling
Custom Solutions
Open Source
Callcenter
Ten questions put to Marco Kiernan, head of the new
ifb group service line ‘BI Technology‘
What is actually meant by Business Intelligence?
In short, the term Business Intelligence (BI) refers to the procedures and
processes that facilitate systematic collection, analysis and presentation of
company data in electronic form. This provides an insight allowing better
operative or strategic decisions to be effected in line with corporate objectives.
Why has the ifb group created an additional service line with
‘BI Technology´?
The area of Business Intelligence is a rapidly growing market segment. In
addition to professional consulting, our clients are increasingly requesting
technical BI solutions and their implementation. Establishing the BI Technology
service line represents a practical expansion of the value-added chain;
we are able to advise our customers on BI issues more comprehensively, and
now also from a technical perspective. To this end, we have a team of highly
experienced specialists who, for the most part, have previously worked
for the relevant software manufacturers or renowned consulting fi rms.
What lies behind this increased demand on the part of the customer?
Today’s corporate decisions demand consideration of an ever-increasing
quantity of information and number of requirements. Fifteen years ago,
having a consolidated view of company data for tactical and strategic decisions
was a unique characteristic; now practically all companies are expanding
their IT systems to include BI Technology. In future, it will be hard to
imagine corporate management without such instruments.
Which corporate areas are of relevance in this respect?
BI is becoming omnipresent. Previously, only selected staff in controlling
and accounting departments employed the corresponding reporting and
analytical tools. In future, these tools will not only be called into play by
authorised decision-makers, but also by operatively active personnel in
sales, marketing and production departments.
Accounting
Sales Force Automation
Range of services provided by the new BI Technology service line
Billing
Services
BI Applications
Frontends
BI Strategy
Data Governance
BI Software
HR/Payroll
Bookings
Operations
Supply Chain
BI Applications
Integrated Planning
Legal Consolidation
Prebuilt Applications
Frontends
Reporting & Analysis
Dashboards
Management Information
BI Portals
Data Governance
Data Warehousing
Data Integration
Data Quality

Why is the interplay between technology and business know-how so
important?
Many BI projects fail for lack of coordination between specifi c requirements
and the implementation of IT. This can lead to false expectations,
user acceptance problems, supplementary costs and budget overruns for
the project. With its business expertise and IT know-how, the ifb group can
bring all its strengths to bear on a BI project.
Why is close cooperation or partnership with BI software
manufacturers so important for ifb?
A close relationship with software producers is immensely important because
only by cooperating in such a manner are we able to receive prompt
and comprehensive information and support regarding current technological
developments from the manufacturers.
Why does ifb maintain cooperation with a number of software
manufacturers?
Many of our customers have heterogeneous IT architectures and use technology
provided by various manufacturers, so we need to take this fact into
consideration. As a fi rst step with respect to BI, we focus on the leading
software manufacturers SAP and Oracle, and to some extent, Microsoft.
How will the new BI Technology service line impact on ifb’s existing
partnerships with software manufacturers?
Extremely positively, because the established software manufacturers
recognise the importance and growth potential of Business Intelligence.
As an example, this can be seen in the acquisitions by SAP, IBM and Oracle
of BI software specialist companies such as Outlooksoft, Business Objects,
Cognos or Hyperion. Our new BI Technology service line increases ifb’s
appeal as a capable partner for software manufacturers.
For which areas do you offer solutions? Are you focussing on any
specifi c BI themes?
Data warehousing, reporting, analysis, planning and consolidation, together
with all the associated sub-areas. We provide IT solutions and
– in cooperation with other ifb Service Lines – also offer total corporate
management solutions. These solutions support the entire management
cycle within the company; namely, from target setting, simulation, modelling,
planning, analysis and reporting right through to preparation of the
annual statement.
How would you describe a typical BI project?
There is no such thing as a typical BI project because each project is unique
in its complexity and scope. For instance, where one customer may require
the migration of several thousand reports, another might call for the
development of a management reporting system that might involve implementation
of an entire business performance management solution. This
would then entail the integration of various sources such as SAP, FibuNet
or Excel, presentation of fi nancial information such as the profi t and loss
account, balance sheet or cash fl ow statement and, of course, presentation
of non-fi nancial key performance indicators (KPI). Moreover, this also
encompasses, for example, external web-based access, monthly planning,
rolling twelve-month forecasts or the mapping of various consolidation periods
to support management or legal reporting.
Marco Kiernan
ifb Annual 07/08 15

Hartmut Görlitz,
Ulrich Steinhauer
LBS Norddeutsche
Landesbausparkasse
Berlin-Hannover
Ralf Beckers
ifb group
MDM: master data and metadata management
ifb Annual 07/08 16
Focus Banking
LBS Norddeutsche
Norddeutsc
Norddeutsche
Landesbausparkasse
Total solution for controlling, reporting
and planning
When it comes to performance,
LBS Nord offers its
customers a signifi cant
edge in an extremely competitive
market environment.
In order to increase
this competitive edge,
we decided to implement
an integrated control
solution on the basis of
ifb-OKULAR ® . The result is
impressive in every aspect
– functionally, commercially
and technically.
Hartmut Görlitz
Head of Controlling/Financing,
LBS Norddeutsche
Landesbausparkasse
Berlin-Hannover
Decentralised planning
Analysis
Preparation of information, reporting
• Scorecard
• Planning
• Modelling
Portal (workspace)
• Monitoring
• Analysing
• Reporting
ESSBASE (evaluation cubes)
Calculation engine and cubes
Access layer
(and operative system data storage)
Data integration
Hyperion
Overall bank management with Hyperion and ifb group
LBS Nord relies on ifb-OKULAR ® for implementation
of its business intelligence system
“A future-oriented restructuring of the company’s management systems
rather than punctual optimisation of the existing systems”, was the pivotal
decision upon which the Norddeutsche Landesbausparkasse Berlin-Hannover,
LBS Nord, introduced the development of a state-of-the-art integrated
management control system. The fourth largest regional building and loan
association in Germany envisaged a high-performance data warehouse solution
and business intelligence system that created optimised conditions
for controlling, reporting and planning, while simultaneously achieving an
exemplary audit compliancy of all the relevant processes.
Professional selection process with challenging specifi cations
The LBS Nord objective is to ascertain all business data using reliable methods
of a high technical quality and to consolidate such data in a clear and
controlled process. In accordance with specifi c building and loan business
criteria within the scope of the data warehouse solution, this comprehensive
approach required the implementation of high performance components
for calculating market price, fl oating rate and counterparty risks as
well as for client transaction management. In addition, a solution was also
required for the implementation of Basel II.
In light of these program specifi cations, LBS Nord brought in the Würzburg
Business Application Research Centre (BARC) as a specialist partner to
support in selecting an appropriate partner. The subsequent joint analysis
concluded that two providers would be able to implement the required
solution most effi ciently. As a result, LBS Nord opted to commission ifb
group and Hyperion (now ORACLE) as product suppliers and PROLOGIS as
consultants in relation to the Hyperion environment.
ORACLE
ifb group
Parameterisation level for risk and result areas
Management tools, e.g. for treasury/credit treasury
P&L and present value management
Specific evaluations/analyses
Portfolio models
• Sales management
• Market price risk
• Credit risk
ORACLE
internal data external data
• Strategic + OpRisk
• P&L planning
ifb group ifb group
Basel II reporting
Basel II calculation
engine
Controlling
calculation engine

Professional implementation on the basis of ifb-OKULAR ®
While Hyperion implemented the reporting and planning systems linked
to the data warehouse, based on the modular overall bank management
system ifb-OKULAR ® , the ifb group was tasked with preparation of the
technical solutions for counterparty risk, LBS Nord securities business management,
sales management – including client transaction planning – and
the man-agement of operational risk and Basel II requirements. The ifb-
OKULAR ® applications will be used directly and exclusively by the controlling/fi
nancing department at LBS Nord.
One challenge needing to be resolved parallel to the implementation activities
already being carried out, is to achieve consistency in terms of all
the ratios and calculation methods employed by LBS Nord. To this end,
supported by the ifb group team, LBS specialists will clarify the nature of
data the company generates for a given purpose, the methods applied
and which data will be required in future. Ultimately, future calculation
methods will then be established in a comprehensive glossary with binding
effect.
Optimal conditions for controlling and planning
Drawing on this technical basis, Hyperion furnishes a state-of-the-art,
web-based business intelligence solution for reporting and planning at LBS
Nord. In future, in combination with a precisely developed access rights
concept, Hyperion will provide the relevant management levels with the
possibility of accessing an extensive range of current ratios and reports at
any time via the intranet or internet.
This not only includes the immediate retrieval of clearly presented information
on all the relevant controlling aspects, but also provides a balanced
scorecard from Hyperspace GmbH that allows the implementation of
strategic decisions to be continually monitored. In addition, the intensive
cooperation of LBS Nord with savings banks and independent commercial
agents that is decisive to market success is sustainably improved through
the straightforward availability of current counterparty reports. Moreover,
supported by ifb-OKULAR ® SOLVARIS, the reporting system generates the
relevant LBS Nord reports required by the Deutsche Bundesbank in compliance
with Basel II.
In view of these individual obligations, the LBS Nord planning system, on
whose conception ifb group is acting in a consulting role, is the ‘mandatory
element‘ in terms of the BI solution. Supported by the sales units and on
an expandable basis, the complex LBS Nord planning process can be implemented
with an absolute minimum of effort using the required number
of iteration cycles. This procedure not only takes into consideration all the
relevant factors, such as volume of new business, personnel costs and sales
commission, but also embraces qualifi ed risk assessment. In this respect, the
complex collective simulations that savings banks use to forecast development
of their loan and deposit-taking business represent a supplementary
challenge. Specialist service providers are incorporated into the planning
system to provide support with the extremely comprehensive calculation
processes. Bringing the data warehouse and business intelligence solution
successively on stream will position LBS Nord Berlin-Hannover as one of the
leading fi nancial institutes in its sector in terms of IT.
Ralf Beckers
ifb Annual 07/08 17

Dr. Bernd Walter
Kasseler Sparkasse
Swetlana Reykhrudel
ifb group
Using the new Liquidity
at Risk method, we have
succeeded in determining
our short-term liquidity on
an objective basis. We are
particularly pleased with
the fact that the project
costs for introducing the
software were amortised
within a short time.
Dieter Mehlich
Managing Director,
Kasseler Sparkasse
Flexible liquidity risk management
Establishing ability to pay
ifb Annual 07/08 18
Focus Banking
Kasseler Sparkasse
Liquidity at Risk:
liquidity risk under control
Optimising the amount and
composition of liquidity reserves
Liquidity change “early warning system”
A MaRisk-compliant liquidity management structure
enables growth in earnings
Net cash outflow
(history + scenarios)
Liquidity reserves
Stress tests: incl. cessation of credit
lines, withdrawal of deposits
Structural liquidity risk management
Maintenance of structural liquidity balance in consideration
of new business planning
Client and principal investments
(current and target)
Liquidity reserves
Funding matrix
Client and principal investments
(current and target)
Inter-bank
refinancing
Optimisation of profitability through
adequate liquidity reserves and “refinancing mix”
Control ratio: Liquidity at Risk Control ratio: Liquidity Value at Risk
Liquidity burden that, in all probability,
will not be exceeded within
a specific period
Volume > Payment flow level
Liquidity risk management requires a fl exible and structural scheme.
The majority of banks manage their short-term liquidity using current ratios.
The new Liquidity at Risk (LaR) concept enables an improved quantifi -
cation of liquidity risk and can provide liquidity management with controlling
impulses that impact on net income. Liquidity management functions
are divided into three elements: short-term liquidity management secures
the bank’s capability to cover net cash outfl ows affecting liquidity that may
occur within days or a few weeks; long-term liquidity management ensures
that the bank’s refi nancing potential remains at an adequate level
during periods of structural change so that it can provide suffi cient funds
at appropriate prices; market liquidity management ultimately ensures
that retained assets can be quickly and effi ciently transformed into liquid
assets. The minimum requirements for risk management (MaRisk) compel
all banks to take liquidity risk suffi ciently into account within their risk management
and control processes.
Liquidity at Risk (LaR) as a solution for meeting MaRisk
requirements
Primarily, MaRisk presents challenges because the anticipated cash infl ows
and outfl ows have to be compared in a liquidity profi le that also encompasses
forecast scenarios. In addition, banks must continuously monitor
whether they are in a position to cover actual liquidity requirements at
any given time. However, conventional current ratios do not permit reliable
statements to be made on the anticipated cash infl ows and outfl ows as
client behaviour constitutes an uncertainty factor that cannot be quantifi
ed using traditional processes. This problem can be solved using the Liquidity
at Risk (LaR) concept: LaR is a calculation of the net cash outfl ow from
all externally directed bank payments that, in all probability, will not be
exceeded during a predetermined time horizon. LaR plots a volume ratio
that is compared with the liquidity reserves, inclusive of credit lines.
Contractual obligations vis-à-vis sales
Underwriting business
Loss of capital due to unexpectedly high refinancing costs that,
in all probability, will not be exceeded
within a specific period.
Volume + price < Capital level
Capital adequacy (MaRisk)
Line capacity, if applicable

Simple and practical implementation using
ifb-OKULAR ® LIQUIRIS
In the form of ifb-OKULAR ® LIQUIRIS, a standard software is now available
for carrying out the complex calculation of LaR. This solution facilitates the
implementation of supervisory law requirements through automatic backtesting
and is certifi ed in such a manner that a bank-internal verifi cation of
the results is not required. The fundamental data consists of payment fl ows
determined by balancing transaction accounts, whereby revenues from
liquidity arrangements are deducted during the calculation of the net cash
outfl ow as they causally serve liquidity management and do not represent
externally directed payments. In practice, calculation of the LaR only requires
one fi le that shows both net cash infl ows and net cash outfl ows with
the commensurate dates. As a basis for the analysis, these fi gures provide
all the available information on client behaviour. A variety of parameters
are now available to the user. Within a specifi c time band, the LaR can be
determined for any combination of the prescribed terms and confi dence
levels. Terms ranging from a few days to one month are available for the
appropriate maturity structures.
Options relating to performance-based liquidity
management
Conscious of its short-term liquidity requirement, a bank can avoid excessive
levels of highly liquid assets and their resultant negative impact on income.
If such assets are refi nanced through borrowing on the liabilities side, the
corresponding extra charges are frequently higher than those for securities
(mortgage bonds, federal) held for the purpose of liquidity management.
The effect on income resulting from the reduction of excess liquidity reserves
and repayment of refi nancing funds constitutes a reduction of the
bank’s negative spread between refi nancing and investment. Calculation
of the LaR also offers benefi ts where a reduction of refi nancing funds is not
possible on account of refi nancing being intensively client-based or where
this is undesirable from an accounting policy perspective. Funds that are
not immediately required to create liquidity can be redistributed to other
securities with lower degrees of liquidity and higher liquidity premiums.
As a rule, in the case of both stated procedures for optimising earnings
through redistribution to the bank’s own security deposit account, a period
of two days must be allowed for liquidity to become available. Awareness
of the LaR also allows the optimisation of funding credit lines that must
be available in less than a day. Secured credit lines at other banks or the
pledged account at the Central Bank can be suitably reduced and matured
securities redistributed in order to benefi t net income. Practical experience
shows that using the LaR concept, a short-term reduction of liquidity costs
is achievable that, in turn, has a direct impact on the P&L account.
Swetlana Reykhrudel
ifb Annual 07/08 19

ifb Annual 07/08 20
Focus Banking
Integrated counterparty risk measurement
on the basis of a hybrid model
Thomas Rempel-Oberem
ifb group
Example of a medium-sized German bank illustrates
a new way of quantifying counterparty risk
Credit Value at Risk has become increasingly signifi cant in terms of bank
controlling, in turn raising the question of how this process can be integrated
into a comprehensive controlling system. The subsequent essential
factors are comprehensive risk assessment, consistent methodology and an
integrated view. This means that the diversifi cation effects at an overall
bank level need to be appropriately considered as opposed to the individual
Values at Risk of various portfolios. This is also necessary for calculating
the risk-bearing capability.
In response to these requirements, ifb has developed the following hybrid
model in cooperation with a medium-sized German bank. Firstly, the relevant
counterparty risk portfolios were identifi ed and linked to various
appropriate risk models. Next, the results at an overall bank level were
aggregated, whereby diversifi cation effects were also taken into consideration.
The thus determined Credit Value at Risk was then divided into
individual positions as a basis for managing the credit risks. The aim of the
project was to comprehensively measure the Credit Value at Risk of all the
bank‘s credit portfolios, whereby the specifi cs of the corresponding risk
models and also their inter-diversifi cation were appropriately taken into
account.
Identifying the portfolios
The basis of the hybrid model is formed by the division of the entire portfolio
into a number of sub-portfolios that are uniform in both context and
structure. In the project described here, three groups were identifi ed:
1. A retail portfolio comprising several hundred thousand counterparties,
whose exposure distribution and rating structure was both homogeneous
and well diversifi ed.
Retail
Private clients and SME
clients, extremely small-scale
business with good
diversification
Credit Risk+
Large-scale financing
Extremely large exposures
in part, potential for
significant swings
in security values
Monte Carlo
simulation model
Copula method
Consolidation of Credit Value at Risk at overall bank level
Principal investments
Minimum default risk,
but potential substantial
risk as a result of
drops in rating
Credit Metrics
Calculation of risk shares
Division of Credit Value at Risk between individual counterparties
Using the three portfolios ‘Retail‘, ‘Large-scale fi nancing‘ and ‘Principal investments‘, the hybrid model facilitates the integrated calculation
of Credit Value at Risk.
Model level

2.
A portfolio of large-scale fi nancing schemes with a few thousand com-
mitments. These formed a self-contained group on account of their
large volumes and the substantial signifi cance of potential swings in
security values.
3. Principal investments subject to counterparty risk, where the focus was
not so much on default risk, but rather on the risk of loss due to changes
in credit standing.
Allocation of risk models
These three portfolios were subsequently linked to various risk models that
were best-suited for evaluating the respective activities:
1. The well-known Credit Risk+ model, which can reliably assess a large
number of counterparties at an excellent rate of performance, was selected
for the retail portfolio for reasons of effi ciency.
2. A Monte Carlo simulation model, which also takes into account swings
in security values and enables fl exible assessment, was best-suited to the
large-scale fi nancing schemes.
3.
The Credit Metrics model, which in addition to default risk also takes
potential loss resulting from rating drops appropriately into account,
was used for the principal investments.
This provided the basis for calculation of a realistic distribution of losses for
all the models. These in turn form the basis for the subsequently implemented
Copula method, which, in the next step, integrated and consolidated
the counterparty risk on an overall bank level.
Aggregation using the Copula method and calculation of
risk shares
In addition to the diversifi cation effects, the aggregation of risk should
also refl ect the specifi c asymmetry of counterparty risk distribution. As
such, the so-called Copula method is better suited here than a ‘simple‘
variance-covariance approach. In an analytical procedure, the probability
of all the potential events occurring simultaneously is evaluated, including
the correlation effects. The result is a uniform loss distribution that specifi
es the bank’s overall counterparty risk. Through this integrated structure,
the Credit Value at Risk of the entire bank can ultimately be divided
amongst the individual counterparties. This enables sustainable credit risk
management from the individual transaction level right up to the structural
allocation at overall bank portfolio level.
The integrated measurement of counterparty risk using the above depicted
hybrid model enables the specifi cs of individual portfolios to be taken into
account without neglecting integration on an overall bank level and the
results of individual counterparties. Counterparty risk management is
hence more transparent, more fl exible and open to any future expansion.
ifb Annual 07/08 21

The challenges of a transactional banking
project – akin to replacing an aircraft
engine in mid-fl ight
Jürgen Mauk
ifb group
Nationwide’s Business
Transformation Programme
‘Voyager’ is a major strategic
investment for the
Society and its members.
The size and complexity
may appear akin to replacing
the engines on a
Boeing 747 whilst in fl ight
but we recognise this as an
exercise in effective risk management.
We understand
this as clearly as we do the
upside benefi ts, which for
us, are very signifi cant.
Darin Brumby
Divisional Director Business
Systems Transformation,
Nationwide Building Society
Training
ifb Annual 07/08 22
Build
Architecture/
Infrastructure
Focus Banking
Process-
Analysis
As-Is System
Landscape
Business
Process
Reengineering
Vanilla
(target)
Successful ifb projects with international banks
illustrate how sensitive changes in transactional
banking can be implemented with calculable risk
Currently, one of the most important tasks facing banks is the optimisation
of transactional banking – also referred to as ‘core banking‘ – which
involves consolidating the administration of current accounts, savings
accounts, time deposits and loans. A perfect data fl ow within this bulk banking
business reduces costs and complexity, thereby increasing margins and
effi ciency.
Transactional banking projects place high demands on the implementation
partners: even the slightest processing or adjustment error can cause grave
damage, including erroneous account balances and transfers or incorrect
data for risk assessment. In addition, these projects do not merely involve a
single reporting unit or sub-system, but rather concern the bank’s ‘engine’,
in other words its entire IT infrastructure and production, all the accounts,
deposits, transfers, loans, client data etc. Given that downtime of just
one single working day would have catastrophic consequences and that
a three-day disruption could even mean the end of the bank, this engine
must continue to function throughout the entire implementation project.
Consequently, as is the case in aircraft construction, a transactional banking
project requires comprehensive planning and numerous highly specialized
partners.
Affording business requirements priority
In cooperation with SAP AG and banks from various countries, ifb group
has successfully implemented numerous transactional banking projects.
Such projects initially always encompass both operational and technical
requirements, whereby the IT architecture is fundamentally aligned to the
business requirements. The overall project is therefore essentially driven
by the business aspect as apposed to being an IT project. As such, the following
procedure is recommended:
Training
Prototype Sandbox BBP Realisation Test Simulation Production
Vanilla
(adjusted)
Preliminary
Target
Architecture
Migration Planning Migration Realisation Migration Production
Change Management
Target
Architecture
A transactional banking project requires specifi c comprehensive planning, given that all the operational systems in the bank are changed, adapted and/or
replaced without interrupting ‘production‘ at the bank.

1. Prior to starting the actual project, stock is taken of all the processes,
their consolidation and thematic allocation.
2. During subsequent Business Process Reengineering (BPR), it is important
that these processes are either optimized or, where necessary, redesigned.
SAP process and systems experts should already be participating
at the BPR stage in preparation for the future employment of standard
software. Any questions, requirements and reservations should be clarifi
ed with the specialist departments beforehand.
3. These steps form the basis of the business blueprint, which maps the
business requirements within the IT structure. Next, the fi rst client employees
attend SAP seminars to develop their expertise. A technical platform
is installed as a prototype in advance to replicate the requirements
established during BPR. Functional gaps in the standard software can
now be jointly identifi ed. Planning of the implementation phase then
commences and the initial overall assessment of deposit management
costs confi rmed.
4. Ideally, the comprehensive implementation phase is divided into individual
steps, or releases. This division is dependent on a number of
factors and is only defi nable following BPR. The fi rst release should be
as modest as possible and only encompass, for example, newly opened
accounts, and not the complete transfer of more established accountrelated
data and data stocks. Risk at the productive start of such a minirelease
can be further reduced if, to begin with, accounts are opened
and transactions are carried out solely by bank employees as apposed to
customers. Above all, this high security approach must always be adapted
to real conditions.
In the following steps, data fi les are migrated according to specifi c products
and the old system is successively shut down; for example, fi rst current
accounts, then savings accounts, time deposits and loans.
Redesigning IT architecture
The task of IT is to structure its architecture in consideration of all applicable
business requirements and SAP standards; whereby optimisation and
categorisation of processes is also a prerequisite. An example of such is
the optimisation and categorisation of payment transaction processes.
Ideally, these will be consolidated into a payment layer (payment transaction
system, dispatcher, transaction broker), which does not only implement
technical payment transaction process allocation, but also guarantees
its completeness, unambiguity and auditability. This would not be possible
without consolidated processes and the corresponding target architecture.
An essential prerequisite to achieving this is that the entire architecture is
service-oriented.
Overview of further important implementation steps
In addition, numerous other tasks need to be considered: for example
the establishment of a programme management offi ce that can manage
between 50 and 250 people. A central element also involves data acquisition
from the legacy systems, mapping or accumulation, time-critical upload
at the productive start and coordination of the migrated data. Owing to
the size and complexity of these projects, change management as well as
tests and resource planning are also of major importance for successful
implementation.
Marek Ristock
Enterprise SOA is nothing
more than services packed
in standardised interfaces
that all speak the same
language (semantics). The
signifi cance of this approach
becomes clear using
an analogy from air traffi c
management: instead of
having interpreters at every
airport translating between
the languages of the air
traffi c controllers and the
individual pilots, the agreed
worldwide standard is for
all pilots and air traffi c controllers
to use English as the
single authorised language.
This standardisation guarantees
fl exible air traffi c
management and a reduced
level of risk.
Martin Schroter
Chief Architect SAP Financial
Services, SAP AG
ifb Annual 07/08 23

Communication and documentation
requirements necessitate a change in paradigm
Dr. Rainer Merkt,
Marek Ristock
ifb group
ifb Annual 07/08 24
Focus Banking
ifb supports inter-departmental and inter-system
communication and documentation
with PathWeaver ®
Market sectors Backoffice Principle departments
Loans Middleware
Book value
Share secured
by mortgage in %
Secured by business
mortgage
Leasing
Book value
Share secured
by mortgage in %
Secured by business
mortgage
Market sectors IT
Fast and effi cient communication within and between various departments
is a principal factor of success for banks and insurance companies.
Documentation forms a central part of this process: it coherently explains
complex content, records agreements, is distributable to numerous recipients
and also spans time.
Specifi c documentation with its own focus and language is generated in
each department and for every IT system, a factor that hampers communication
between departments and outside system boundaries. Such insuffi -
ciency in internal communication conceals risks and generates high costs.
Moreover, the signifi cance of communication and documentation, in particular
for banks and insurance companies, is increased still further through
external factors, not least by compliance requirements such as Basel II/
Pillar 2, MaRisk, MiFID and SOX. Processes and data fl ows need to be transparent
for auditing, auditors and supervisory bodies
A silo mentality and individual documentation complicate
communication
The generation and maintenance of good quality documentation is often
neglected, which results in justifi ed doubt with respect to their completeness,
consistency and currency. In addition, a reduction in the quality
and appropriateness of documentation also reduces the level of utilization.
Market-based, specialist and IT departments often fail to understand each
other because they do not share uniform and transparent language and documentation.
In particular, the meaning (semantics) of specialist terms and
data items is frequently unclear and not centrally defi ned. Managers call up
data items for a variety of reasons, then defi ne, process, communicate and
report on them; often resulting in inconsistencies and discrepancies.
A further problem is the lack of transparency in terms of results. Data is
Book value
Share secured
by mortgage in %
Secured by business
mortgage
Middleware IT
Analysis
Data flow
IFRS Analyzer Management reporting
Book value
…
Share secured
Share of book value
by mortgage in %
secured by mortgage
Secured by business
mortgage
‘Backward analysis‘ in PathWeaver ® elucidates which processes, systems and data infl uence specifi c result windows
(here, for example, the result window ‘Share of book value secured by mortgage‘).
Regulatory reporting
Share of book value
secured by mortgage
Backoffice IT Principle departments IT

uploaded in a variety of reporting applications from numerous front-offi
ce systems via different back-offi ce systems. As a result of the numerous
individual documents, it is then no longer evident and transparent how
specifi c results were determined and which processes, systems and data
were infl uential in achieving them.
Inter-departmental and inter-system documentation
Based on more than 15 years of project experience at the interface between
market-based, specialist and IT departments, ifb group has developed an
inter-departmental and inter-system documentation and communication
concept. The concept focuses on the central, uniform and comprehensive
documentation of:
data models (data items/structures) and their semantics,
transformation, e.g. the transfer/processing of data items,
process phases of business and IT processes.
PathWeaver ® software also supports the concept technically, which enables
both an overall and detailed mapping of data models and process phases.
As the illustrated mapping example shows, data fl ows are transparent from
end-to-end. The benefi ts of inter-departmental and inter-system documentation
are clearly evident: the uniform mapping of systems, data items, interfaces
and processes is just as clear-cut and consistent as it is transparent
and complete. The centralised documentation is accessible to all concerned
and promotes communication between market-based, specialist and
IT departments, while fl exible granularity in terms of presentation allows
for adaptation for the purposes of evaluation. Moreover, inter-departmental
utilisation of the mutual documentation platform, PathWeaver ® , enables
the semantic integration of business and technical ratios and fi gures.
PathWeaver ® also provides support with respect to system introduction,
expansion and migration.
Where the path is leading – a change of paradigm for
IT architecture and structural organisation
The concept not only supports changes in communication and documentation
behaviour, but also the necessary rethinking in terms of IT architecture
and structural organisation. Method consistency, integration and
transparency are the key words characterising the current discussions on IT
architecture. PathWeaver ® anticipates the change in paradigm as regards
service-oriented architecture (SOA), the principles of which are also becoming
increasingly established in the IT architecture of banks and insurance
companies. Additionally, a change in paradigm as regards structural
organisation is also apparent. Transparency and methodical and semantic
integration can only be signifi cantly improved if structures change. In place
of the silo mentality, control mechanisms are required that implement new
methods of communication and documentation on an inter-departmental
and inter-system basis.
Effi ciently meeting the multifaceted compliance and governance requirements
is one of the greatest challenges currently facing the fi nancial sector.
Accordingly, ifb group provides support both in the form of its interdepartmental
and inter-system documentation and communication concept
and with its PathWeaver ® software.
Dr. Rainer Merkt
ifb Annual 07/08 25

Dr. Adrian Ainetschian,
Tobias Richert
ifb group
On the theory and practical
application of stress tests
in banks, see also the following
book published by
the ifb group:
Claus Stegmann,
Kai-Oliver Klauck (Hrsg.):
Stresstests in Banken.
Von Basel II bis ICAAP,
Schäffer-Poeschel,
Stuttgart 2006.
ifb Annual 07/08 26
Focus Banking
Subprime crisis as a case in point: how stress
tests create liquidity risk transparency
10. Crisis of confidence on the markets
and between banks
9. Drop in new business and tightening
of liquidity
8. Run on banks,
creditor banks encounter problems
7. Increasing liquidity requirement,
tougher refinancing conditions
For extreme crisis cases, statistical models should be
supplemented by stress tests
Using the subprime crisis as an example shows that liquidity risk management
needs further development. In order to be suffi ciently armed for corresponding
developments on the fi nancial markets, stress tests must be
introduced to supplement statistical models such as Liquidity at Risk. This
would facilitate early simulation and forecasting of the extreme crisis situations
that could well lead to the insolvency of a bank.
Statistical models in a normal situation
Liquidity management is based on the gap analysis (funding matrix), which
involves the comparison of cash infl ows and outfl ows in time bands. In Germany,
subject to specifi c requirements, MaRisk and the new Liquidity Regulation
(Liquiditätsverordnung) allow banks to measure and report liquidity
risk using their own procedure instead of standard methods. Depending
on the business model and situation of the bank, this procedure may vary
greatly. As such, there are no standard guidelines that bind all banks. In
normal situations, the new statistical models such as Liquidity at Risk are
important supportive procedures.
Stress tests for a crisis situation
However, in crisis situations statistical models should be supplemented by
the appropriate stress tests similar to the market price risk environment.
The Committee of European Banking Supervisors (CEBS) has consequently
put forward a number of basic scenarios. These include the following market-induced
scenarios: problems in the inter-bank market, withdrawal of a
key market participant from a specifi c market, the shortage of liquid funds
in a specifi c market and the collapse of a signifi cant currency. In addition
the following bank-related scenarios were suggested: a drop in the bank‘s
credit rating and subsequent rise in refi nancing costs, a higher level of commitments,
an increased outfl ow of deposits and diminishing credit lines.
1. Interest rate increase (2004–2006)
2. Interest burdens in terms of real estate credit
3. Bursting of real estate bubble, forced sales
4. Increased drawing of credit derivatives
5. Flight to government bonds, diminishing yields
6. Write downs, illiquidity of asset-backed securities
The subprime crisis and its various stages: stress tests afford transparency at an earlier stage in relation to crises and any subsequent consequences
affecting liquidity.

A combination or sequence of these or similar scenarios could develop into
a crisis that, in turn, could lead to a liquidity risk.
In terms of overall bank management, an attempt should be made to defi ne
these basic scenarios with identical parameters used for other stress tests,
for example, those employed for market price risk.
Examples from the subprime crisis
Using the individual stages of the subprime crisis as an example, the following
shows how various prime risk stress tests could be used to map such
a scenario (for the different stages, see also the illustration).
Between 2004 and 2006, the Federal Reserve (USA) increased the interest
rate no less than 17 times. Primarily, such a move leads to short-term outfl
ows on the liabilities side; the resulting market price risk can be simulated
using interest rate shifts or spreads. However, the interest rate hikes
also led to an increased propensity for counterparty default as the burden
on real estate credit based on variable interest – widely used in the
USA – increased perceptibly. The appropriate stress tests show, with a specifi
c time displacement, the probability of key borrower default or cluster
risks within the portfolio. Consequences within the funding matrix are delays
or defaults in payment, with further losses also incurred through price
losses in relation to securities – for example, collateralised debt obligations
(CDOs), with which credit risks relating to mortgage-based loans are securitised
on the capital market – or generally through the illiquidity of fi nancial
instruments and markets. These can be simulated using additional stress
tests (market price risk, exchange risk).
Market participants reinvested in secure government bonds, which in turn
caused a loss of effective yield. As a result of the markets for CDOs and ABS
drying up, the subprime crisis intensifi ed, with a drastic reduction in new
business and inter-bank credit lines. For fi nancial institutes specialising in
subprime loans, the impact has been massive: liquidity reserves have fallen
and refi nancing has only proved possible subject to tough conditions. This
in turn damaged the reputation of the relevant banks, resulting in a reduction
of its credit rating or withdrawal of credit lines. It is for this reason that
also intrinsic risks caused by external events or operational risks, such as
loss of reputation, have to be taken into consideration in stress tests.
Conclusion
Through appropriate modelling of the primary risk drivers, stress tests enable
liquidity risk to be mapped and managed. This integrative approach
to the diverse basic risks is still in the development phase in many banks. In
future, supervisory law will increasingly focus on more advanced processes
for measuring liquidity risk and the corresponding stress tests. Banks with
fl exible and open IT architectures that enable integrative and transparent
views of source and result data using various solutions will have the edge.
Dr. Adrian Ainetschian
ifb Annual 07/08 27

European Bank for Reconstruction and
Development optimises limit systems
Olaf Weick
ifb group
ifb Annual 07/08 28
Focus Banking
Source Systems
SAP Portal
The ifb group has provided specialised and technical
assistance to the EBRD for a number of projects,
including introduction of the SAP Limit Manager
The European Bank for Reconstruction and Development (EBRD) was established
in London in 1991 to support Central and Eastern Europe during
the transition to a market economy and to promote entrepreneurial enterprise.
Today, the EBRD is the biggest individual investor in the countries of
the former eastern block. More than 60 states and organisations are shareholders
in the bank, including the European Union and its member states,
as well as the USA and Japan. This distinctive structure as a supranational
organisation with investments in capital markets that in some cases are
only partially established requires a particularly high level of transparency
in terms of risk.
Since 2006, the ifb group has been supporting the EBRD in achieving
this task in its capacity both as a specialist and technical partner for the
following projects:
Introduction of a hedge accounting solution using SAP Accounting for
Financial Instruments software (AFI), which replaced the previous system
developed by the bank.
Establishment of a joint data pool based on the SAP-BI for applications
in the area of risk management and accounting.
Introduction of an SAP Limit Manager system to monitor credit limits.
As an example, details of implementation and the benefi ts of the new limit
system are provided in the following. Introduction of the system forms part
of a comprehensive internal EBRD programme to improve risk management
processes, methods and systems. The limit system pertaining to credit and
commercial risks is not only a requirement of supervisory law, but is also an
important instrument of internal capital and risk management. It monitors
a multitude of limits for various risk positions maintained by the bank, such
as national country limits, business partner limits or portfolio limits. This
ensures that existing risks are transparent, limits are adhered to and imme-
Analytic Layer
Result Data Layer
Method Layer
Financial Data Base
EUR
Limit
Availment of credit
The limit system serves to ensure that all existing risks are transparent and remain within the limit structure, and that immediate counter measures can be
implemented should limits be exceeded.
TIME

diate countermeasures can be initiated should the limits be exceeded. As
such, the aim of the project is to effect central monitoring of all credit risks
undertaken by the bank.
The project began with a detailed analysis and documentation of the
EBRD‘s operative requirements in terms of monitoring its credit limits. This
analysis was then used to prepare an IT implementation concept.
The task of the ifb group included responsibility for the specialist technical
concept of the SAP Limit Manager, which is part of the SAP sector solution
‘SAP for Banking‘ , and subsequent technical implementation. To satisfactorily
meet all the specifi c requirements of the EBRD, a standard SAP
solution is being commensurately expanded, for example, by introducing
the possibility of dividing and presenting the credit risk in terms of time
bands. In addition, ifb is also developing a new user interface for the SAP
Limit Manager that is optimally tailored to the needs of the bank. The expansions
are provided as services, in turn enabling fl exible application, and
are incorporated in the service-orientated architecture (SOA) of the SAP
Bank Analyzer.
User-friendly interface simplifi es monitoring of limits
The new interface provides users with an overview of all limits together
with information that is of specifi c relevance to them, for example, rating
information pertaining to borrower limits. It facilitates user-friendly processes
and is also incorporated in the SAP Enterprise Portal, which simplifi
es the combination of various applications. The bank employee simply requires
an Internet browser, no other software needs to be installed on the
PC. Users access the SAP Enterprise Portal via their Internet browser; thereby
not only gaining access to the SAP Limit Manager, but also to additional
comprehensive information on business partners, access to the bank-internal
document administration system, as well as the workfl ow and reporting
tool. As such, the user responsible for controlling the borrower limit is
simultaneously provided with details of the borrower and documentation
pertaining to the credit approval process.
The new interface: quick to implement, state-of-the-art
application
Technically speaking, the new display is based on Web Dynpro for ABAP,
the new SAP standard for user interfaces. The advantages of the new standard
over the classical SAP interface are reduced potential for defects with
respect to new developments, a short development period, lower development
costs, an up-to-date, modern layout and seamless integration into
the SAP portal – the overall principle being: maximum design, with the
minimum of programming. The interface is based on central services that
facilitate data preparation. This service-orientated architecture enables
functions to be uncoupled from the display on the screen.
Operational implementation of the SAP Limit Manager – planned for the
end of the year – will provide the EBRD with a credit default risk limit system
that meets the latest professional, supervisory and technical standards
and which simultaneously affords consideration of the bank’s own specifi c
needs.
ifb Annual 07/08 29

Governance, risk and compliance in banks:
transparency in risk management –
Pillar 2 as a GRC initiative
ifb Annual 07/08 30
Focus Banking
Ralf Huff,
Dr. Kai-Oliver Klauck
ifb group
The market players are
called upon to assume
responsibility for improving
risk management. In particular,
this concerns liquidity
risks, measurement practice,
disclosure requirements and
transparency.
Prof. Axel A. Weber
President of the Deutsche
Bundesbank
Banks are able to use implementation of Pillar 2,
Basel II, to improve transparency of their internal
control and management procedures
In the face of the current fi nancial market crisis, two particular questions
come to the fore: namely, how can the supervisory body expedite stabilisation
of the fi nancial markets following introduction of Basel II? And
what independent action can individual banks take to protect themselves
against the potentially catastrophic consequences of such a crisis? These
questions also form the subject of recommendations put forward by the
Financial Stability Forum (cf. interview with Prof. Axel A. Weber, President of the
Deutsche Bundesbank, p.10).
In this respect, the interests of supervisory authorities and the individual
banks are actually closer than may well appear at fi rst glance. It is less
a question of tightening specifi c regulatory requirements – for one only
needs to look at the current crisis to see that the supervisory provisions
are lagging behind the fi nancial markets. Rather, it pays to take a closer
look at the existing requirements of Pillar 2; given that implementation
of these provisions improves transparency in risk management and capital
allocation, not only for the supervisory authorities, but also on an internal
basis for the banks themselves. Naturally, this does not guarantee strategically
correct management decisions; however, it does considerably reduce
the likelihood of undesirable developments. As such, implementation of
Pillar 2 is not a ‘necessary evil‘, rather it represents an opportunity. Thus,
the opportunity is not merely a question of using the framework prescribed
by Pillar 2 to achieve transparency vis-à-vis supervisory authorities
in terms of risk management and capital allocation, but is also about specifi -
cally using Pillar 2 internally within the bank to improve management and
create a culture of risk awareness. Overall, this is implemented by means of
governance, risk and compliance (GRC).
Risk
Strategies
Risk management and
controlling processes
Governance
Overall responsibility
of the management
Operational and
organisational structure
Internal auditing
Risk-bearing capability Documentation
Process requirements for credit
and commercial business
Internal control system
Compliance
A comprehensive GRC initiative not only enables banks to meet the requirements of Pillar 2, but, above all, also allows them to use the requirements internally
to improve management and create a culture of risk awareness.

Compliance and corporate management must go hand in
hand
To date, compliance has frequently been limited to ensuring observance
of the requirements of supervisory law, such as sending commensurate reports
to the appropriate authorities. The information required to achieve
this often stems from technical island solutions – seldom is it the result
of a comprehensive overview created, for example, within a management
information system. This gives rise to data redundancy and unnecessarily
high expense due to the fact that management, internal auditing or the
supervisory authority are, in part, presented with similar information. In
addition, certain aspects of risk management and compliance are inadequately
incorporated within the structure and process organisation of
many banks. The outcome: in a number of banks the management and supervisory
board have an insuffi cient overview of the existing risk situation.
Whereas risk management and compliance may be somewhat secondary
aspects for other companies, in the case of banks, these areas form a central
element of the business activity and as a result should be appropriately
incorporated into corporate management (governance).
Achieving this fi rst requires ‘compliance‘ to be expanded so that it goes
beyond simply referring to reporting. Such expansion entails the introduction
of a corresponding framework as well as structural and procedural
organisation within the bank. Moreover, activities need to be incorporated
into bank management processes to a far greater extent than has
previously been the case. Overall, the aim is to bring risk management and
compliance in line with corporate objectives and present the management
with the information necessary to accomplish this. Only by achieving such
a position is it possible to establish the risk-bearing capability, determine a
risk strategy and ensure adequate provision for risks and risk situations.
Risk management as a central element
Any comprehensive risk management system within the meaning of a GRC
initiative will not only include credit, market and operational risks, but
will also extend to an internal system of control. In addition, risks that are
somewhat diffi cult to quantify such as the risk to reputation, strategic risks,
or risks not backed by equity, such as liquidity risks, can also be afforded
consideration. A GRC initiative will also include commensurate documentation,
communication and incorporation into training and personnel development.
Not least, it will also require well-grounded and comprehensive
IT support.
The benefi ts of such a GRC initiative considerably outstrip the associated
costs. Firstly, costs are reduced through the avoidance of data redundancy;
secondly, the costs of implementing Basel II (Pillar 2) are minimised as
a result of pre-empting the requirements prescribed by the supervisory
authority; and thirdly, the process gives rise to an expectation that fi nancial
markets will reward a risk-conscious approach and effective controlling.
Indeed, this expectation has encouraged a series of banks to select an
advanced approach in terms of calculating equity capital needs.
However, of much greater importance than cost considerations is the opportunity
to considerably enhance assessment of the bank‘s risk position
and, consequently, safeguard its sustainable development. This is not only
in the interests of the management, supervisory board and investors, but
also serves the interests of the fi nancial supervisory authorities.
Ralf Huff
ifb Annual 07/08 31

Börge Thiel
ARAG Rechtsschutz
Lars Tybussek
ifb group
Through the implementation
of ProKoRisk ® we
have substantially accelerated
our operational risk
management processes. ifb
group has proved itself a
highly competent professional
and technical partner
throughout the implementation
phase.
Dr. Paul-Otto Fassbender
CEO ARAG Legal Insurance
ifb Annual 07/08 32
Focus Insurance
ARAG Rechtsschutz
Professional management of operational risk
The ARAG group uses ProKoRisk ® to optimise its
OpRisk system
Operating in twelve European countries and the USA, ARAG is one of the
world’s three largest providers of legal protection insurance. In Germany,
the group also provides personal insurance as well as property, third-party,
accident and motor insurance. The largest German family-owned insurance
company developed a differentiated concept of tackling operational risk
at an early stage, which was then implemented on a group-wide basis. In
2006, ARAG made the decision to introduce a professional software solution
to effi ciently support the operational risk management processes.
The aim of the investment was to reduce the amount of human resources
required to carry out risk inventories in order to accelerate risk identifi cation
and assessment processes. ifb group were awarded the contract to
transfer ARAG’s existent and complex professional operational risk management
concept (OpRisk) into a software-supported solution. The decisive
factors that supported the choice of partner were extensive coordination
between the concepts and the high level of professional expertise
of both parties. These factors guaranteed the timely implementation of a
high performance OpRisk system throughout the group.
Clearly defi ned requirements
ARAG’s software decision was based on comprehensive performance specifi
cations formulating the system’s contextual requirements. These guidelines
simultaneously aimed to create optimal conditions for implementing
the solution in all the group companies.
The main criteria included:
An automated, centrally controlled process for the implementation,
assessment and reporting of risk inventories.
Clear allocation of operational risk to organisational units and principal
departments at the group holding company, insurance companies and
service providers.
Optimal user orientation and motivation through a user screen design
based on the corporate design of individual group companies and an
English/German dual language layout.
A differentiated role and user concept in consideration of the high standards
of ARAG group IT security.
Straightforward integration of the software into the group IT landscape
and an auditable historisation of risk data.

OpRisk as an integral company process component
Following evaluation of the ProKoRisk ® software solution on the basis of
the performance specifi cations, the contextual defi nition of the planned
solution was punctually concluded. In the course of implementation, the
project team focussed principally on the working process and motivation
of the users. In order to ensure a smooth transfer onto the web-based system,
the routine procedure familiar to all the participants was adopted. At
the same time, in terms of the user interface design, ifb group software
specialists maintained close consistency with the corporate design of the
individual ARAG group companies in order to identify the OpRisk application
as an integral component of the corporate processes. The screen
design and the user language on every group unit are activated automatically
– independent of the risk manager log-in. The ARAG group carries out
quarterly risk inventories with the participation of around one hundred
decentralised risk managers, who process all the risks within their area of
responsibility via a web interface in ProKoRisk ® . Consequently, the project
team developed a differentiated role and access rights system using specifi
c access right fi lters. Commensurate with the high standards of security
at ARAG, ProKoRisk ® only allows the central risk manager to access all the
risk data. In line with the ARAG concept, the central risk manager is the
only individual with the possibility to generate reports, carry out plausibility
tests and amend or add to master data. The fl exibility of ProKoRisk ®
ensured that all these requirements were met without problem within the
tight schedule.
Effective practical reporting and high level of acceptance
The ARAG group uses ProKoRisk ® to carry out a potential-dependent classifi
cation of all identifi ed operational risks and, on this basis, defi nes a
risk-specifi c auditing and reporting interval. Reporting frequency can be
adapted at any time for both selected risks and the entire risk stock. In
order to ensure that the risk management system provides the group management
with all the relevant facts without producing a surplus of information,
the project team developed a portfolio of standard reports. If
necessary, additional reports can be generated quickly and easily using the
ProKoRisk ® Report-Designer. Through the introduction of ProKoRisk ® , the
ARAG group was able to further increase the level of acceptance of the
risk management system in all group units. Above all, risk managers valued
the unambiguous web-based user screen and considered ProKoRisk ® to be
extremely comprehensible and intuitively easy to operate. In the interests
of the ongoing development of the operational risk management system,
measures had already been taken during the conception and implementation
to allow consideration for possible add on phases. Amongst other possibilities,
a loss database or chance management system can be integrated
if required. As such, ARAG were also comprehensively impressed with the
OpRisk solution in view of its future security.
ifb Annual 07/08 33

Hannes Polit
ifb group
IFRS financial
statements
Technical
project
Implementation
project
Milestones
ifb Annual 07/08 34
Focus Insurance
Versicherungskammer
V
Bayern
Insurance nsurance su a ce co
company company ‘Versicherungskammer
Bayern‘ to implement im
IFRS accounting as of 2009
The group-wide implementation
of IFRS by VKB is a
highly complex task raising
a multitude of specialist
and system-related questions.
Thanks to ifb support
the project is already at
an advanced stage and
will consequently create
optimal conditions for compiling
the balance sheet
in accordance with IFRS
regulations in future.
Hubertus von der Schulenburg
project manager ‘Introduction
of IFRS Accounting‘
Versicherungskammer Bayern
2006 2007 2008 2009
Program management
Overall
concept
Actuarial practice
Capital assets
Accounting and reporting
Group
START Completion of
overall conception
phase
Process and implementation model for IFRS introduction
ifb group supports the project to effect group-wide
conversion from German GAAP (HGB) to IFRS
Not only insurance groups listed on the stock exchange, but also an increasing
number of public-sector insurance companies are also transferring to
IFRS accounting. As the largest insurance company of the German Sparkassen-Finanzgruppe,
the Versicherungskammer Bayern (VKB) will also be
carrying out their accounting in accordance with IFRS in future. Firstly, this
ensures future comparability with other major insurance groups, and secondly,
it also provides VKB with the long-term option of procuring equity
or borrowed capital on the capital markets.
Individual IFRS interpretation and implementation
The decisive factor for success is to ensure that specifi c performance parameters
are consistently allied to operative implementation. Only by individually
interpreting the standards in line with the specifi c circumstances
prevailing at VKB can the successful and targeted implementation of the
project be guaranteed. To this end, a multi-stage implementation model
was developed that is individually tailored to the specifi c requirements
and needs of VKB. The model considers all relevant VKB departments,
encompassing accounting both at group level and within the individual
companies, through to capital assets, actuarial activities and data processing,
as well as knowledge gained in a preliminary IFRS study. The model
comprises:
1. Which IFRS interim statements require compilation and when this needs
to be done by in order to prepare a complete IFRS annual fi nancial statement
as per 31 December 2009?
2. The central technical project is divided into an overall and a detailed
conception phase and forms the technical basis of the project.
3. The implementation project comprises implementation of the specifi c
technical aspects, together with adjustment of DP, processes and organisational
structures (P&O), and is effected at both group level and
within the individual subsidiaries.
Test financial statement 2007 Opening balance sheet Financial
Half-year
statement
Historisation IFRS booking 2008
DP systems
Specific technical implementation aspects
Processes and organisation
Subsidiaries
Specific technical implementation aspects
Processes and organisation
Completion of detailed
conception phase
Program management
Financial statement
Half-year
Opening IFRS half-year financial statement
balance sheet
prepared
PROJECT CONCLUDED
GOING LIVE systems

Specifi c and interdisciplinary project organisation
For this project, the overall project organisation structure is primarily aligned
to the three specifi c areas of actuarial practice, capital assets and accounting/reporting,
as well as the two interdisciplinary areas of DP and
P&O. The program management team is responsible for coordinating these
fi ve specifi c areas, while a staff unit is responsible for quality assurance,
which is the auditor in the case of VKB. A steering committee forms the
central organ for management and coordination of the overall project.
The specifi c requirement is demonstrated by the following examples:
Actuarial practice: for example, the formation of deferred reserves for
premium refunds on account of the fact that differences in valuation
between German GAAP (HGB) and IFRS as regards life and health insurance
will mean future obligations vis-à-vis insurance companies will
have to be posted on the balance sheet.
Capital assets: for example, classifi cation of direct investments in
specifi c IFRS holding categories together with their valuation, in addition
to the implementation of a parallel booking logic system.
Accounting and reporting: for example, redefi nition of the consolidated
group as well as conception of an IFRS annual report and an IFRS group
chart of accounts.
On this basis, the interdisciplinary DP implementation aims to ensure that
all specifi c areas are incorporated into the IT structure. In the case of VKB,
this required adjustment of the the software SimCorp Dimension, the development
of an SAP FI Special Ledger solution and expansion of SAP EC-CS.
In terms of P&O, the fi nancial closing processes were realigned at group
and individual-company level; thus, the new IFRS requirements have been
integrated into existing German GAAP (HGB) fi nancial closing processes.
Factors of success during implementation
Since its initiation the project has run according to plan and is now twothirds
complete. All essential milestones have been achieved on schedule
and within cost budgets. Compilation of the opening IFRS balance sheet
to 1 January 2008 is anticipated by the end of June 2008. A primary factor
for an effi cient conversion is the centralised accounting system and capital
asset management employed by VKB, which facilitated central implementation
of IFRS and gave rise to a signifi cant reduction in time and expense.
In introducing IFRS, ifb has pursued a pragmatic and implementation-based
approach, whereby specifi c required tasks have been realistically interpreted
and materiality limits practically considered. This has been undertaken
in close coordination with the external auditors – presenting VKB with
an ideal combination that guarantees both effi ciency and transparency.
The interdisciplinary compilation of the ifb team encompassing auditors,
IFRS practitioners, actuaries and IT specialists is also of particular benefi t,
while the continuity of personnel in the ifb core team facilitates effi cient
implementation. A primary factor for success is also the partnership-based
cooperation between ifb and VKB; whereby all teams and committees are
homogeneously organised so as to ensure an optimal transfer of knowledge
and close cooperation. Moreover, as with numerous other projects,
ifb continually pays attention to the parallel ‘coaching‘ of client personnel
in order that these employees succeed in expanding their specialist knowledge
during the project and are able to independently carry out the new
tasks by conclusion of the project at the latest.
ifb Annual 07/08 35

36
Preparations for Solvency II begin with the 9th
amendment of the Insurance Supervision Act
(VAG) and MaRisk (VA) for insurance
Nicole Fopma,
Thomas Rauschen
ifb group
Solvency II, with its
impending supervisory
regulations, is already
casting a shadow.
Solvency II represents a
challenge for corporate
risk management. To this
end, resolutions taken by
the German Bundestag are
encouraging companies to
begin commensurate preparations
at an early stage.
Dr. Jörg von Fürstenwerth
CEO of the German
Insurance Association (GDV)
Strategic Risk Management
Risk Governance
Risk Strategy
Risk-bearing Ability
Risk Infrastructure
Control Environment
(Corporate Governance)
Internal Control System
Internal Audit
Audit-/Risk-Committee
How insurance companies in Germany can effi ciently
meet the new requirements
The starting signal for preparations ahead of Solvency II sounded in Germany
on 1 January 2008 when, on the basis of the 9th amendment of the
Insurance Supervision Act (VAG), Section 64a VAG (Business organisation)
and Section 55c (Auditing and risk reports) entered into effect. These provisions
codify supervisory law requirements pertaining to risk management
and reporting in insurance companies and pension funds. The regulations
are substantiated by the supervisory law provisions contained within the
Minimum Requirements for Risk Management in Insurance Companies
(MaRisk (VA)). The communiqué based on Sections 64a and 104s VAG was
published at the end of April 2008 in draft form and, following the consultation
phase, is expected to appear in its fi nal form in October. As such, this
provides an insight into the essential qualitative requirements of Pillar 2 of
Solvency II at national level.
Incorporation of the new solvency regulations into national law and effective
introduction of the national provisions is expected by 2012. The MaRisk
(VA) requirements will be effected well ahead of Solvency II given that
the supervisory authority wishes to encourage the German insurance industry
to ensure early preparations for the advent of supervisory standards
contained within the Solvency II rules. Consequently, insurance companies
should already be making preparations in order that they may benefi t at an
early stage from opportunities presented by the new regulations.
Content of the new requirements
Section 64a VAG expressly states that the management is responsible for
ensuring due and proper organisation of the business and establishing an
adequate risk management system; whereby this also includes formulation
of a risk strategy in line with the corporate strategy, establishment of a
risk-bearing capability concept and the introduction of a limit system. The
obligation to introduce an appropriate organisational structure allowing
for management and monitoring of corporate risks and business processes
is also expressly stated. In addition, adequate processes for identifi cation,
Control Environment
Strategic
Risk Management
Operative
Risk Management
Organisational Framework
Organisational Framework
Business strategy
Structure & Resources
Processes
Corporate Management
Operative Risk
Management
Risk Identification
Risk Assessment
Risk Controlling
Risk Monitoring
Internal and External Reporting
The four areas of the ifb risk management framework serve as a tool to divide the new regulations into thematic elements and categories.
ifb Annual 07/08
Focus Insurance

assessment, management and monitoring of essential risks are also to be
introduced. As such, risk management in insurance companies will be effected
on a broader basis in future and will also be linked to management
processes within the company – a move that greatly surpasses current risk
management requirements (e.g. Corporate Sector Supervision and Transparency
Act (KonTraG)).
Not all regulations represent a new move
At fi rst glance the new requirements appear to be extremely extensive.
However, a closer look clearly reveals that elements of the new requirements
are already standard practice. For example, effective qualitative risk
management processes are often already in place and contingency plans
documented. Although such requirements have not been put in concrete
terms to date, the establishment of a risk management system has been
necessary from both a regulatory and business point of view. The main task
ahead now lies in partially expanding the existing risk management system
to include any missing elements, refi ning existing rules and methods,
and incorporating risk management into the overall corporate management
structure. In turn, this provides an opportunity to update, modernise
and progressively realign outmoded risk management methods and
procedures. The subsequent aim should be to intelligently link individual
risk management modules and bring these into line with planning and management
processes. In this respect, the focus does not purely centre on
fulfi lling the requirements of future supervisory law, but, above all, lies in
the added value that can be created with a well-grounded corporate risk
management system. This includes qualitative effects, such as enhanced
risk awareness or improved process quality, but also extends to the creation
of competitive advantages.
Opportunities to reduce the cost of implementation
Prior to implementing the new regulations, the fi rst step is to create a clear
overview of the required action, before then planning the individual implementation
stages in a structured manner. The initial move is to divide
the new regulations into thematic elements and categories, for example,
by allocating them to the four areas of the ifb risk management framework.
The next step is to examine whether any MaRisk (VA) requirements
are already covered and/or whether there are methods, tools or processes
already in place that can be used as a basis. A comparison of the existing
risk management system with the new MaRisk requirements will elucidate
the action that needs to be taken; this can then be focused on and an appropriate
conception worked out.
Not too early to begin implementation
On this basis, the new requirements can be effi ciently implemented and
associated opportunities swiftly exploited. Even at this early stage, attention
should be focussing on a number of individual themes, such as the
formulation of business and risk strategies or the documentation of the risk
management organisation and processes, thereby allowing the company to
prepare for the upcoming changes. Simultaneously, the process of ongoing
analysis and updating of strategies and documentation can also be carefully
implemented and integrated into existing practices. As a consequence,
the Solvency II mindset is also established within the company at an early
stage.
Nicole Fopma
ifb Annual 07/08 37

E.ON as as a a fi nancial nancial service provider provider – – the the path
path
to obtaining a licence in accordance with MiFID
Dr. Jochen Handke
E.ON Energy Trading AG
Carsten Freilinger
ifb group
ifb Annual 07/08 38
Focus Corporates
E.ON Energy Trading AG
This licence allows us to
offer our clients throughout
Europe a large range
of fi nancial instruments in
terms of risk management.
ifb provided us with excellent
support throughout
the complex and timeconsuming
licensing
process.
Håkan Larsson
Managing Director,
E.ON Portfolio Solution GmbH
Phase 1
Preliminary studies
Elucidation of supervisory
law consequences
Identification of gaps
in supervisory law and
ascertainment of expense
Evaluation of the various
strategic implementation
alternatives (partial/full licence)
Implementation of MiFID resulted in the E.ON group
requiring a licence for fi nancial service providers, for
which the company subsequently founded E.ON Portfolio
Solution GmbH. Throughout this task E.ON was
supported by the ifb group
Derivatives on the energy market have long since ceased to be a rarity.
Energy suppliers and major industrial companies frequently use these fi -
nancial contracts on energy products as a hedging instrument against
specifi c risks pertaining to energy supply. Accordingly, the German-based
multinational E.ON, one of the world’s leading power and gas companies,
also advises its key customers in relation to management of their power
portfolio – for instance, with respect to the use and administration of energy
derivatives. Until 2007 this task was performed by E.ON Sales & Trading
GmbH (business unit for customer portfolio management). However, with
effect from November 2007, the EU ‘Markets in Financial Instruments Directive‘
(MiFID) has required companies taking on this role to obtain a licence,
in Germany from the Federal Financial Supervisory Authority (BaFin). For
E.ON, the licence has the advantage of allowing the company to expand its
range of fi nancial consulting products and also offer consulting on a pan-
European basis in future.
As a result of MiFID, a whole series of other companies operating in the
energy market have been and are being obliged to apply for commensurate
licences, in turn necessitating fulfi lment of the relevant comprehensive requirements
and, where necessary, development of new business models.
Focus on transparency
The aim of commensurate incorporation of MiFID by all EU member states
is to create a transparent and standard internal EU market for fi nancial
Phase 2
Specific conception
Basis for implementation
Development of business model
Specific concepts for risk
management and reporting
Formulation of information
system requirements
Development of organisational
structure in compliance with
supervisory law
Preparation of BaFin licence
application
Phase 3
Implementation
Implementation of organisational
structure and processes
Data processing conception
Data processing implementation
Mapping of
supervisory
law requirements
October 2006 June 2007 October 2007
The planning and implementation process through to licence issue

service providers. Additional MiFID objectives are to protect the functioning
of the capital market, ensure increased capital market effi ciency and
provide better protection for investors.
These changes had considerable consequences for E.ON Sales & Trading
GmbH in that, with effect from 1 November 2007, their customer portfolio
management services were classifi ed as fi nancial services requiring a BaFin
licence. This situation presented E.ON with a multitude of options, the advantages
and disadvantages of which have been thoroughly analysed with
the aid of ifb. As an example, licensing E.ON Sales & Trading GmbH in full
was a conceivable option, as was the establishment of a new independent
entity.
Wholly in line with the intention of MiFID – which affords customer interests
pre-eminent status – E.ON opted to establish a new company that operates
independently of other E.ON entities, namely, E.ON Portfolio Solution
GmbH. Since December 2007, the new company has taken over services
provided by the previous customer portfolio management business unit
and also offers a host of additional services such as investment consulting,
fi nancial portfolio management or investment and contract broking. These
areas of business have also been considered within the scope of licensing.
From concept to licence
Despite an early beginning back in October 2006, preparations for the
licensing process were subjected to intensive time constraints owing to
the fact that fi nal amendments to national supervisory law were only fi rst
published in May 2007. Numerous stages of the project needed to be carried
out in parallel. In a fi rst step, ifb and E.ON employed preliminary studies to
explore the consequences for E.ON‘s customer portfolio management that
would ensue from the changes in supervisory law. Various possible business
models were developed, with critical IT systems identifi ed and assessed in
light of both commercial and supervisory law requirements. Following
selection of the business model, the specialist risk management and reporting
conception phase was implemented by summer 2007. Parallel to this
task, work on the licensing and implementation of the necessary processes
was also initiated. Ultimately, the entire process from business idea to
issuing of the licence took one year, with the newly established E.ON Portfolio
Solution GmbH commencing business operations on 5 December 2007.
Through the BaFin licence, E.ON not only fulfi ls the new requirements of
supervisory law, but is also able to offer an expanded range of fi nancial
instruments relating to risk management. As an example, hedging instruments
such as futures or swaps can now be considered without limitation
as regards the preparation of risk strategies or consulting and broking
of trading operations. In light of the ongoing development of the energy
market, these instruments are playing an ever-greater role within the scope
of energy supply. The new licences also strengthen E.ON‘s position as a
competitor to banks that are becoming increasingly active on the energy
market. Moreover, the newly introduced ‘European passport‘ allows E.ON
fi nancial services to be offered in future throughout Europe without the
need to apply for national licences in each individual country.
Customers of E.ON Portfolio Solution GmbH are also afforded greater transparency
through its role as an independent agent, given that the company
does not solely provide E.ON group fi nancial instruments, but also offers
other providers‘ products. As a result, the customer gains a comprehensive
and transparent overview of both the market and available instruments.
Carsten Freilinger
ifb Annual 07/08 39

Governance, risk and compliance
in a mechanical engineering company
Willy Holtkamp
ifb group
ifb Annual 07/08 40
Focus Corporates
How an ICS project audit can increase transparency
and profi tability
GRC rules impose a binding framework on corporate management. These
include laws such as the Sarbanes-Oxley Act (SOX), quality and best practice
standards such as COSO II, CobiT and ITIL as well as auditing standards
and internal guidelines.
However, the fact that compliance with all statutory provisions alone will
not suffi ce, is ably demonstrated using the example of a successful German
mechanical engineering company that has a host of production and sales
companies both in Germany and abroad. In order to bring its governance
compliance system up to the requisite US-SOX level, in close coordination
with its auditor, the company combined the COSO model and the CobiT
best practice approach to IT into a uniform GRC framework.
Ostensibly this served to cover a host of relevant SOX and GRC requirements.
However, despite this move, the system did not prevent considerable
losses occurring primarily as a result of unexpected or recognised, but
underestimated, risks incurred with corporate projects.
A brief analysis by the ifb group showed that
the ICS was not suffi ciently supported by IT
processes within the group – including project management processes
– were not uniformly defi ned, evaluated or documented
project reports were not always suffi ciently up-to-date
Resolution of these problems occurred in two phases with the aid of ifb:
Phase 1: analysis and improvement of the existing GRC system, above all
by eliminating control and management weaknesses in group-wide processes.
Phase 2: analysis and optimisation of the existing internal control system
(ICS) for project risks within the scope of an ICS project audit with the aim
of identifying structural risk potential at an early stage of project management
and installing commensurately effective protective measures.
Integrated GRC model architecture
Level 1 regulatory environment
Harmonisation of regulatory requirements, such as SOX variations, the EU 8th Directive,
German Corporate Governance Code, international laws etc.
Level 2 internal control environment
Interlocking of control framework and application of Best Practice according to COSO, CobiT etc.
Level 3 processes
Control objectives and measures, risk controlling, early warning system, control maturity model.
Level 4 IT support
Monitoring/assessment of IT efficiency, data security, dataflow etc.
Integrated GRC model architecture affording consideration of regulatory environment, the internal control environment, processes and IT support

Phase 1: GRC optimisation
Firstly, on the basis of the above-stated defect analysis, a precise and integrated
GRC model architecture was developed (see illustration) and documented
in the redesigned compliance policy. This new GRC architecture
integrated the following four levels: regulatory environment, internal control
environment, processes, and IT support. In line with the ‘COSO cube‘,
the following three dimensions were also included: eight enterprise risk
components, four entity units and four objective categories.
As a result, company practice in terms of GRC became simpler, more unifi
ed and gained considerably greater transparency thanks to the internal
GRC reporting process. Adherence to the new compliance policy is analysed
quarterly by means of internal auditing, as is the ongoing development of
ICS quality using a maturity model.
For the purpose of optimising IT support, the obsolete IT system pertaining
to the ICS was also replaced by the latest ifb ProKoRisk ® software.
Phase 2: ICS project audit
Building on this, the ICS project audit followed in a second phase; whereby
the defect analysis effected in phase one was completed and, amongst
other things, a term repository was also formulated. In addition, the ICS
project audit included defi nition and introduction of an IT-supported project
risk early warning system.
Specifi c optimisation measures of the ICS project audit are demonstrated
by way of the following two examples:
1. A new project guide was developed, using precise defi nitions to ensure
that verbal assessments of risks and opportunities can be numerically
arranged. This is a useful tool, for example, in the risk early warning system,
where it allows the signifi cance of negative variations from planning
to be immediately assessed. Moreover, the binding term repository
ensures that projects and their associated risks and opportunities are
classifi ed and evaluated according to clear uniform criteria.
Additionally, the earned-value principle was introduced for all projects.
This presents project costs incurred to date against the progress achieved
by the project. As such, this function provides important key ratios
that enable comprehensible and uniform assessment of risk. The process
is also continuously monitored technically by means of the ProKoRisk ®
2.
Active Communication Server.
Following implementation of a bundle of prioritised measures, the mechanical
engineering company now has an integrated ICS boasting high practical
utility that links seamlessly into the GRC environment. As a result, the
ICS provides the key components of the group-wide risk management system
and has a process-based structure. This in turn enables the success of
corporate projects to be enhanced by way of fulfi lling GRC requirements.
In the project risk management example, this translates into high transparency
in terms of risks, costs and the status of projects, while simultaneously
facilitating standardised risk assessments and protective measures
and thus a reduction of losses stemming from unsuccessful projects.
Willy Holtkamp
ifb Annual 07/08 41

Incorporating individual requirements
within risk management
ifb Annual 07/08 42
Focus Corporates
Hamburg Port Authority
Carsten Spieck
Hamburg Port Authority
Holger Kruse
swb Erzeugung GmbH & Co. KG
Manuela Nuhn,
Lars Tybussek
ifb group
RCM – Information and decision-making fl ow (vertical/horizontal)
Hamburg Port Authority and swb AG convert their
company-wide risk/opportunity management systems
using ProKoRisk ®
In less than a decade, risk/opportunity management (ROM) has developed
into a central corporate management instrument. Recognition of the fact
that a systematic approach to risks and opportunities will sustainably increase
both the earnings security and performance of a company has led
to ever-greater differentiation in terms of adapting the ROM system to the
individual aspects of the respective company. Moreover, that this trend
particularly lends itself to the application of standard software is ably evidenced
by ProKoRisk ® . The ifb group ROM software solution is characterised
by its high fl exibility in terms of implementing specifi c company requirements
and offers all the advantages of a fully developed, advanced
solution.
In this respect, some of the major benefi ts include support for all processes
of risk/opportunity management, functionally reliable embodiment
throughout the company and user-friendliness. At the same time, ProKo-
Risk ® guarantees clear-cut and effi cient processes: automated monitoring,
early warning and communication functions relieve risk managers of timeconsuming
routine tasks and guarantee maximum functional security of
the entire system. Company-wide documentation and assessment cycles
are independently organised by the software: the current position remains
transparent at all times and is communicated via specifi c customised reports.
All loss-incurring events are historicised within the system, with a
system-based database provided for central data storage. ProKoRisk ® is
compatible with all standard database platforms and can also be made immediately
available throughout the entire corporate group as a web-based
solution.
Supervisory
board meeting
(at least once a year)
Department head meeting
Department head, staff council representative,
directors as necessary (generally once a week)
Departmental routine
Department head, process managers, administrators, controllers
(generally every two weeks)
Process routines
Process managers and department managers (generally once a week)
Department/office meetings, if necessary
Management and staff (as required)

ROM system for the Port of Hamburg – HPA masters a complex
range of tasks
Just how complex requirements can be that are effi ciently implemented
with ProKoRisk ® is clearly demonstrated by means of a ROM project which
the Hamburg Port Authority (HPA) implemented in cooperation with the
ifb group. The company emerged as a public-law corporation from the Hanseatic
city‘s electricity and port administration in 2005. Tasked with offering
users of the second largest European container port the best possible
framework conditions for freight handling, HPA‘s activities are accordingly
complex in terms of economic and political priorities: port development
planning, maintaining the Elbe as a waterway and ensuring that shipping
traffi c runs smoothly are all tasks that fall within the remit of the HPA. It is
responsible for the maintenance, expansion and modifi cation of quayside
walls, moorings, open areas, bridges, streets and track systems – in other
words, practically the entire port infrastructure. Moreover, mooring administration,
port railway operations and supply and waste disposal utilities
also count amongst its functions.
Providing a ROM system capable of appropriately integrating all these
areas required intensive cooperation on the part of experts from all divisions
of the port authority, who fi rst had to familiarise themselves with the
mode of operation and commercial possibilities of a company-wide ROM
system. Through dialogue with the protagonists, it soon became clear that
the primary challenge would lie in incorporating the risk/opportunity system
within the established cooperation processes between the thematically
very different company divisions. In addition, a further factor was to
supplement risk identifi cation and assessment with a process enabling actuarial
consideration of individual risk potential.
Win-win scenario for the company and the Hanseatic city of
Hamburg
Accordingly, the project team anticipated complex tasks in relation to the
inventorisation and quantifi cation of all relevant risks and opportunities.
Given its particular role as a public-law company the HPA is also intricately
bound with the Hanseatic City of Hamburg in various areas of liability.
One of the central tasks incumbent upon the project team was to allocate
individual risks to the various company units with binding effect while
nonetheless affording consideration to HPA processes, and to defi ne
appropriate early warning indicators and, if necessary, additional control
measures. The selected organisational model centrally allocates risk
responsibility to managers of the individual company units, who for their
part then orientated the processes in line with the individual features of
their area. Mapping in ProKoRisk ® also occurred on the basis of this organisational
structure.
The user-friendly procedures for inventory, assessment, monitoring, early
warning, reporting and controlling paved the way for smooth integration
of the ROM system into business processes, which in turn has given rise to
a high degree of acceptance on the part of those tasked with responsibility
for risk management and process organisation. The extent to which
Germany‘s largest port operator recognises the system‘s practical commercial
potential is evidenced, not least, by the fact that the number of software
user-stations was increased from the original fi gure of 25 to 60.
>
In terms of its specifi c daily
activities, HPA is diffi cult
to compare with other companies
owing to the highly
specialised, function-oriented
structure, which needs
to be coordinated within
the scope of an extremely
dynamic port company.
Also of importance is the
fact that the effi cient and
reliable running of Hamburg
port operations can
only be assured through
the longstanding, exceptionally
multifaceted knowhow
within our company.
Working with ifb, both of
these factors were optimally
incorporated into the
risk management system
processes.
Tino Klemm
Division Manager,
Finance and Accounting
Hamburg Port Authority
ifb Annual 07/08 43

Department risk
manager
Assesses risks
ifb Annual 07/08 44
Focus Corporates
swb Erzeugung Erze
GmbH
& Co. KG
Our decided objective
was to develop a companyspecifi
c risk/opportunity
management system that
could be transferred from
the pilot company to all
group units and which
would refl ect the clear
responsibilities within a
role-based workfl ow
concept. This was easily
achievable using the
ProKoRisk ® software.
Andreas-Robert Hartung
Head of Investment
Controlling and Treasury,
swb Erzeugung GmbH &
Co. KG
Group-wide risk management system for Bremen-based
swb Group
The focus of the risk management project (RM project) undertaken for the
swb Group centres on implementing both the management philosophy
and the new process requirements of the corporate group with a softwaresupported
system that also supported corresponding procedures within
the swb Group risk/opportunity management system.
As one of Germany‘s most established utility companies, swb has undergone
dynamic development within the scope of energy market deregulation.
Employing over 2,400 personnel, the swb Group is today positioned
as a supplier of electricity, natural gas, drinking water and heating
energy. Moreover, in the waste to energy business division swb occupies
a leading position in Northern Germany, with technical services rounding
off the comprehensive service range. Under the swb AG umbrella, the
various group companies are each tasked with clear-cut areas of responsibility.
Against the background of a challenging competitive environment and
increasing market differentiation, swb plans to provide uniform support
for risk management in all group companies in future by introducing highperformance
standard software – a consequent opportunity to improve
the assessment and management of risks and opportunities as a whole at
group level.
As a long-standing partner to the energy supplier in questions of risk management,
the ifb group was commissioned with initially implementing
the RM system using the current version of ProKoRisk ® at energy provider
swb Erzeugung GmbH & Co. KG. As such, the energy company effectively
functioned as a pilot for the entire project. A central requirement of
the software solution was the development and mapping of a workfl ow
concept that ensured group-wide updating, approval and assessment of
risks/opportunities, measures and possible incidence of loss. At the same
time, a further task was to introduce an access-rights system to allow processing
by the responsible personnel. This took into account the multi-level
risk management process – from the operative implementation incumbent
Company risk
manager
Change in status
• Checks
assessment
• Prepares reports
Change in status
Prepares reports
Change in status
Risk database
Group risk
manager
• Up to six status levels can be used. Read and write access rights can be allocated for each status level.
• Processing can be managed in line with user needs by allocating different staff to the various workflow steps.
Filter and status concept: optimum workfl ow support
Risk processing
completed

upon the departmental head and control via the company risk manager,
right through to coordination at group risk management level. The aim
in this respect was to achieve a greater degree of standardisation in order
to create system-inherent functional security and meet the requirements
for future implementation of a standard system solution on a group-wide
basis.
Workfl ow concept for a standardised total solution
On this basis, the RM process in ProKoRisk ® has been subsequently structured
to allow each user to immediately recognise and carry out their current
tasks without further coordination and forward the fi le within the
processing chain. The level of standardisation achieved using this workfl ow
concept offers all those involved in the risk management process a high
degree of transparency and security, which in turn enhances motivation.
The ProKoRisk ® database concept also contributes in this respect in that the
data bank structure simplifi es the standardised information level provided
to all risk management process personnel and those involved in internal
auditing.
In addition, to ensure optimal support for the work and information fl ow
within the risk management system, the project team also tailored a number
of the ProKoRisk ® functions to the specifi c needs of swb Erzeugung GmbH
& Co. KG. Accordingly, the software solution now allows data attachments
to be added to the data record pertaining to each individual risk, measure
and loss event, in order to provide others involved with additional information
material, avoid duplication and limit the effort required.
The ProKoRisk ® email concept was also expanded in such a manner that it
not only undertakes early warning tasks, but, for example, also provides
immediate information on newly established risks. Additional functions
can also be expanded according to need. Following its successful introduction
at swb Erzeugung GmbH & Co. KG, ProKoRisk ® will then be rolled out
on a group-wide basis.
In its continual development of ProKoRisk ® , the ifb group pays particular
attention to expanding additional functionalities in line with client needs
and incorporating these within the overall concept of the software solution.
With their distinct task emphasis and objectives, the projects undertaken
for the Hamburg Port Authority and swb Group are clear examples
of how application of ProKoRisk ® standard software can provide a swiftly
achievable, successful solution for meeting highly individual risk and
opportunity management needs.
ifb Annual 07/08 45

The evolution of business intelligence
Michael D. Hoffmann
ifb group
ifb Annual 07/08 46
Focus Corporates
CxO
Manager
Power Users
Analysts
Business
applications phase
(1980s)
strategical
tactical
operational
Overview of current developments and future trends
Following introduction of business applications in the mid-eighties, reporting
and analysis processes have further developed in a number of phases
with different core themes. The arrival of the BI concept at the start of the
1990s initially gave rise to a phase of data centralisation, whereas today,
optimisation is primarily focussed on data optimisation and process integration.
In future, the scope of application areas and the importance of
forward-looking analyses will further increase.
Business applications phase
In the mid-1980s, the central task of IT departments was focussed on introducing
new software solutions for specifi c business areas: ERP and PPS systems,
along with centralised electronic accounting and order processing,
whereby each system was equipped with its own data structures and a
function capable of producing the notorious printouts on green and white
lined continuous-feed paper.
Applications introduced in the various departments were mostly used by
the relevantly responsible personnel and only delivered extremely limited
and static evaluations due to the fact that adaptation was such a complicated
task.
At that time, the challenge for the company management lay in creating
a consolidated overview of the status and development of the company
from the diverse data stores. This was achieved on the basis of statistical
reports that, focussing on operative activities, presented an overall view of
the respective business areas, such as sales, production, fi nances or personnel.
Linking the individual areas was extremely long-winded and could only
really be effected by highly experienced managers.
Company information generated in such a manner required considerable
processing times and enormous manual effort in terms of preparing
reports – a situation that still occurs in some companies today. Throughout
the 1980s, this gave rise to the desire for a company-wide standard
Scope Pyramid
CxO
Manager
Power Users
Analysts
Data
centralisation phase
(1990s)
strategical
tactical
operational
Today, thanks to the evolution of business intelligence, company data is not only used at an operational or tactical level,
but is also being increasingly employed for strategic decisions.
CxO
Manager
Power Users
Analysts
Data optimisation and
process integration phase
(2000s)
strategical
tactical
operational

approach based on central parameters and company ratios: production and
sales fi gures, costs, income and much more – which Howard Dresner referred
to under the term ‘business intelligence‘.
Data centralisation
Then, at the start of the 1990s, came the data centralisation phase. Comprehensive
data warehouse and databank consolidation projects were
introduced for the purpose of creating a so-called single point of truth
within the company, a central point of access for all critical corporate data.
In successful cases, analytical tools and management information systems
suddenly became available that allowed company-wide access to central
information. For the fi rst time, decisions at a tactical level could now be
taken on the basis of almost real-time data.
Data optimisation and process integration
Today, in the decade of data optimisation, in addition to further technological
development of the available tools, attention is primarily focussed
on data quality and process integration. The enormous fl ow of data
generated by modern companies to facilitate the operative processing of
in-house functions needs to be qualitatively organised both prior to and
after technical consolidation before it can be used in tactical and strategic
decision processes.
The desire for increased process integration of business intelligence systems
has also given rise to a new genre of BI tools, namely so-called Business
Performance Management (BPM) or Enterprise Performance Management
(EPM) systems. Behind this new generic term lies a necessity to expand the
‘information highway‘ – which to date has only travelled in one direction,
i.e. from the systems to the decision-makers – by a further possibility allowing
the decisions made to be fed back into the BI systems. Filtering out
the previous business year‘s sales fi gures from corresponding BI systems in
order that they can be manually fed into other systems within the scope
of planning the next calendar year generates a media break that can be
prevented by ensuring appropriate integration.
These days all major BI software manufacturers offer commensurate
components within their BI suites to facilitate integrated planning. Thus,
through intelligent project implementation and corresponding know-how,
the introduction of a BI solution can also cover the sections of planning and
consolidation.
The signifi cance of progressive analyses (‘predictive business intelligence‘)
will increase considerably in future. Moreover, this will not simply be a
question of so-called data mining – in other words, the recognition of patterns
in inventory data – but rather will involve support for the decisionmaking
process and the extrapolation of conclusions, practically a further
developed trend analysis. This is a process to which the BI providers will
afford high priority in terms of research and development in the coming
years.
Michael D. Hoffmann
ifb Annual 07/08 47

ifb Annual 07/08 48
Insight International activities
International activities
selected ifb projects
ifb group
ifb AG, Germany
ifb Americas Inc., USA
ifb Asia Ltd., China
ifb Austria AG, Austria
ifb Czech Republic s.r.o., Czech Republic
ifb France s.a.s, France
ifb Hungary Kft., Hungary
ifb International AG, Switzerland
ifb Lux S.A., Luxembourg
ifb Slovakia s.r.o., Slovakia
ifb Suisse AG, Switzerland
2 Innovate IT, Uruguay
FS Technology Sp. z o.o., Poland
Corporates in association with ifb group
ifb Lux-Audit S.à r.l., Luxembourg
ifb Treuhand AG Wirtschaftsprüfungsgesellschaft,
Germany

ifb Annual 07/08
49

50
ifb Annual 07/08
Insight Events
07/08 Events
2nd half-year, 2007
New headquarters for ifb AG in Cologne
20 August 2007. In spring 2009, ifb AG will be leaving its
present headquarters at Cologne’s Neumarkt and moving
to a new building complex at Rheinauhafen. This complex
will provide an anticipated 400 employees in Cologne with
around 7,000 m² of attractive offi ce, work and conference
rooms.
ifb BankPraxis 2007 for private and
special-purpose banks
20 September 2007. Numerous special-purpose and private
bank experts and management members met in Cologne
for the specialist conference ‘ifb BankPraxis – Forum for
Special-purpose and Private Banks‘. Experts from prominent
banks and ifb group consultants discussed new sales
management, risk management and accounting solutions.
ifb Lux S.A. expands Administrative Board
25 October 2007. ifb Lux S.A. has appointed two
experienced specialists on the Luxembourg fi nancial hub
to its Administrative Board: Ernst-Dieter Wiesner, member
(CEO) of the Executive Board of HVB Banque Luxembourg
S.A., and Mirko von Restorff, former Management Board
member of Sal. Oppenheim jr. & Cie. (Luxembourg) S.A.
ifb Treuhand AG Wirtschaftsprüfungsgesellschaft
opens branch in Munich
19 November 2007. In addition to its offi ces in Cologne,
ifb Treuhand AG Wirtschaftsprüfungsgesellschaft has now
opened a branch in Munich. In spring 2008, the branch
is due to be expanded to form a joint-branch with ifb AG.
ifb GenoPoint tours Germany for
the fi rst time
22 November 2007. In 2007, the much-visited ifb
GenoPoint forum for cooperative banks toured Germany
for the fi rst time. Supplementary to the main event on
22 November in Cologne, ifb GenoPoint was also held at
Stuttgart, Hanover and Leipzig. In addition and for the
fi rst time, ifb also held a GenoPOINT special on the theme
of market price risk management.
Close Cycle Rankings 2007
15 November 2007. In the ‘Close Cycle Rankings
2007‘, ifb group and BPM International compared the
close cycle times of large companies from a variety of
countries. The trend towards increasingly shorter close
cycle times is primarily evident in Europe, while in the
USA the closing process has slowed by an average 10%.
1st half-year 2008
1st half-year, 2008
Christian Moser appointed to ifb AG
Executive Board – new associate partner
22 January 2008. On 1 January 2008, ifb AG appointed Christian
Moser to the Executive Board. He has been in
an executive position at the ifb group since 2004 and a
partner since 2007. The following were appointed as new
associate partners of the ifb group: Andreas Fuchs,
Andreas Gerdes, Thomas Kiefer, Dr. Sven Kilz, Dr. Kai-
Oliver Klauck, Dr. Daniel Ruschmeier, Jürgen Salberg.
Dr. Walter Herzog stands down from
ifb AG Executive Board, but remains a partner
12 February 2008. Dr. Walter Herzog has stepped down as
an ifb AG Executive Board member; however, he remains
a partner and consultant of the ifb group. In future, ifb
AG Executive Board tasks will be carried out by Christian
Moser and Claus Stegmann.
SAP and Microsoft form global
SOA network – ifb group is founding member
30 April 2008. In cooperation with 15 leading banks,
consulting fi rms and software companies, SAP and Microsoft
have established the Banking Industry Architecture
Network (BIAN). The founding members also include the
ifb group.
ifb SparkassenDIALOG Special 2008 –
Personnel management
29 May 2008. In addition to the annual ifb Sparkassen
DIALOG event, an ifb SparkassenDIALOG special will also
be held on 29 May 2008 in Cologne. This event is exclusively
devoted to the theme of personnel management
within the German Sparkassen-Finanzgruppe (Savings
Banks Finance Group).
ifb group holds ‘International Banking
Conference for SAP Users‘ in Vienna
3/4 June 2008. Specialists and management members from
banks all over the world meet to discuss their experience
of bank management using ‘SAP for Banking‘. Speakers
from international banks, SAP AG and the ifb group
demonstrate how leading banks use the latest business
and technical management methods with SAP systems.
The conference tackles questions regarding ‘analytical
banking‘ as well as ‘transactional banking‘.

ifb group expands its range of
‘Business Intelligence‘ services
5 June 2008. ifb group has expanded its range of services
in the area of ‘Business Intelligence‘ (BI) with the new
service line ‘BI Technology‘. The tasks of the new service
line encompass cross-sector consulting, reselling and
implementation within the BI area.
Horst Will celebrates 75th birthday –
ifb group founder and Supervisory Board
chairman
6 June 2008. Founder of the ifb group, Horst Will, has
celebrated his 75th birthday. He has played a major role
in successfully developing the ifb group ever since the
company was established in 1989, including as chairman
of the ifb AG Supervisory Board and the ifb International
AG Administrative Board.
ifb-OKULAR ® ORM Software receives SAP
certifi cation ‘Powered by SAP NetWeaver‘
18 June 2008. SAP has presented the consulting and software
provider, ifb group, with the certifi cation ‘Powered
by SAP NetWeaver‘ in respect of its ifb-OKULAR ORM
5.1.3 software. As such, the ifb operational risk management
software is integrable with the SAP technology
platform NetWeaver.
ifb group continues its dynamic growth –
Turnover increases to 59 m Euro and the
number of employees to 430
20 June 2008.. The consultancy and software supplier, ifb
group, is continuing its steady growth of recent years.
As in the previous year, turnover rose by 23% in 2007 to
59 m Euro. As the largest company in the ifb group, ifb
AG recorded a turnover of 46 m Euro and has therefore
grown by around 10%. The number of employees in the
ifb group also rose considerably from 350 to around 430
employees (status at the end of 2007).
ifb group establishes new companies in Slovakia,
the Czech Republic, Hungary and Poland
23 June 2008. ifb group is signifi cantly expanding its
business in Eastern Europe. In future, the consulting and
service provider will also be represented through its own
companies in Slovakia, the Czech Republic, Hungary and
Poland.
ifb group now also represented in Uruguay
through the consulting and software company,
2 Innovate IT
25 June 2008. ifb group has also expanded its business
in Latin America in the form of consulting and software
company 2 Innovate IT. Domiciled in Montevideo
(Uruguay), 2 Innovate IT also has a subsidiary in Miami
(USA) and will work in close cooperation with ifb Americas
Inc. (also in Miami).
ifb Annual 07/08 51

Insight Selected projects
Selected projects
Banking Aachener Bausparkasse AG: Introduction of interest rate book management with ifb-OKULAR ®
ZIRIS Allgemeines Rechenzentrum GmbH Innsbruck: SAP P&L simulation ALTE LEIPZIGER Bauspar
AG: Introduction of interest rate book management with ifb-OKULAR ® ZIRIS Aozora Bank: J-GAAP implementation
AFI 5.0 sub-ledger scenario AXG Investmentbank AG: Expansion of licence to deposit bank Bankhaus Lud-
wig Sperrer KG: Interest rate book management with ifb-OKULAR ® ZIRIS Bausparkasse Mainz AG: Introduction
of interest rate book management with ifb-OKULAR ® ZIRIS Bayerische Hypo- und Vereinsbank AG: SAP Bank
Analyzer – introduction of Strategy Analyzer BHW Holding AG: Group reporting within the scope of integration
Commerzbank AG: Analyses in the areas global trading data pool, fi nancial accounting optimisation, support in imple-
menting a new hedge accounting strategy COREALCREDIT BANK AG: IFRS with SAP Bank Analyzer, introduction
of IFRS, SEM Credit Limit, SEM Profi t Analyzer, SEM Risk/Strategy Analyzer Deutsche Bausparkasse Badenia AG:
Introduction of Basel II computation model with ifb-OKULAR ® SOLVARIS Deutsche Postbank AG: Implementation
of portfolio impairment in accordance with IFRS European Bank for Reconstruction and Development:
Implementation of IFRS solution in SAP Bank Analyzer FIDUCIA IT AG: Development of controlling computation
model, development of a software module for productivity assessment, joint implementation and rollout of ifb-OKULAR ®
ORM for the evaluation and management of operational risks, VR-Control projects Frankfurter Volksbank eG:
VR-Control projects GAD eG: Implementation of a Basel II computation model, VR-Control projects Hamburger
Sparkasse AG: Implementation of a hedge management system, IFRS implementation HSH Nordbank AG: Ac-
celeration of IFRS fi nancial statement to establish capital market viability, establishment of reporting within the scope of
large exposure regulations (GroMiKV), professional and technical support during introduction of IAS/IFRS, implementation
of requirements for Basel II/Solvency Act, process support in integrating fi nancial innovations (‘New products , new markets‘
process) HUK-COBURG-Bausparkasse AG: Introduction of interest rate book management with ifb-OKULAR ®
ZIRIS IKB Deutsche Industriebank AG: Basel II, implementation of IAS Bank Analyzer Kreissparkasse
Böblingen: Treasury Kreissparkasse Herzogtum Lauenburg: Sales management with ifb-OKULAR ®
Kreissparkasse Köln: Implementation of ifb-OKULAR ® IMPAIRMENT MANAGER Landesbausparkasse Berlin-
Hannover: Introduction of overall bank management and total bank reporting LBS Hessen-Thüringen: Interest
rate book management Münchener Hypothekenbank eG: Productivity support Nationwide Building Society:
Implementation of SAP Banking process platform NRW.BANK: Introduction of SAP Credit Risk Analyzer to cover
the Solvency Act (SolvV), introduction of RR Analyzer to cover the new large exposure regulations (GroMiKV) and statistic
reporting, implementation of accounting according to German Commercial Code (HGB) on the basis of SAP Balance Analyzer
NORD/LB: Return management and hedge simulation using ifb-OKULAR ® , commercial law risk report and Basel II,
management and specialist support for specialist IFRS project Quelle Bauspar AG: Introduction of interest rate book
management with ifb-OKULAR ® ZIRIS SAP Deutschland AG & Co. KG: Special expertise partner, curriculum partnership
for analytical banking, development of multi-currency accounting, integrated fi nancial and management accounting,
conception and development of hedge management, assistance with Industry Value Network for Banks, profi tability
analysis, roll-in and test support for Basel II solution, SAP Bank Analyzer – Accounting for Financial Instruments, specifi cation
ifb Annual 07/08
52

of credit risk services within the scope of ESOA, support for Basel II,
support for business content of SAP Bank Analyzer 6.0, localisation
support for Basel II, support of roll-in of SAP Bank Analyzer 6.0, support
services in FS-PP, solution management support Sparkasse
KölnBonn: Risk-based credit auditing, support for introduction
of IFRS Sparkasse Vest-Recklinghausen: Potential-based
sales planning Standard Bank South Africa: SAP Bank Analyzer
– Accounting for Financial Instruments (proof of concept), integrated
fi nancial and management accounting (proof of concept)
Toyota Financial Services: Integrated overall bank management with
ifb-OKULAR ® Vereinsbank Victoria Bauspar AG: Introduction
of interest rate book management with ifb-OKULAR ® ZIRIS ®
Volksbank Bielefeld eG: VR-Control projects Volksbank
eG Konstanz: VR-Control projects Volksbank Gelsenkirchen-Buer
eG: VR-Control projects Volksbank Koblenz-
Mittelrhein eG: VR-Control projects Volksbank Paderborn
eG: VR-Control projects Volksbank Rhein-Neckar
eG: Introduction of overall bank management according to VR-Control,
VR-Control projects Westdeutsche ImmobilienBank AG:
Default risk limitation, Basel II, external price calculator, treasury
return Wüstenrot Bank AG Pfandbriefbank: Overall bank
management Wüstenrot Bausparkasse AG: overall bank
management Insurance SparkassenVersicherung
Holding AG: IFRS implementation Versicherungskammer
Bayern: IFRS implementation Vorsorge Lebensversicherung
AG: SAP coaching support Wüstenrot & Württembergische
AG: Risk-bearing capability Corporates E.ON
Portfolio Solution GmbH: Support in the planning and implementation
process for licensing through the Federal Financial Supervisory
Authority (BaFin) E.ON Sales & Trading GmbH: Support
for risk management and compliance GAG Immobilien AG:
Risk/opportunity management Hamburg Port Authority:
Risk/opportunity management Koelnmesse: Risk/opportunity
management Stadtwerke Lübeck GmbH: Risk/opportunity
management Vaillant Group: Risk/opportunity management
ifb Annual 07/08 53

ifb Annual 07/08 54
Publisher Details Milestones
Corporates
published by ifb group editorial services/art direction/layout/photography/production ifb AG
text context editorial service, cologne and ifb AG, cologne translation into english Transprojekt GmbH, Bonn
proofreading Barbara Möller, Redaktionsservice, Trebur print Siebel Druck & Grafi k, Lindlar

1989 Founding of financial management company ‘ifb – Institut für betriebswirtschaftliche Beratung der Kreditwirt-
schaft, Horst Will & Partner‘ 1990 Launch of in-house software development with the interest management tool ‘Zins-
management‘ 1995 Beginning of partnership with SAP AG 1998 Integration of software products ZIRIS ® , ZIABRIS ® ,
MARGE and CBS ® into ifb-OKULAR ® suite 2001 Transformation into ‘ifb AG‘, with company founder Horst Will taking up
the post of Chairman of the Supervisory Board and Dr. Walter Herzog and Claus Stegmann as members of the Executive Board
2001 Expansion of portfolio to include a range of consulting services and software solutions for the insurance industry
2001 Data-processing cooperative AGR opts to install ifb-OKULAR ® throughout Germany as part of the IT project imple-
menting VR-Control 2004 Expansion of business portfolio to include financial management services 2004 Commence-
ment of business activities of ifb International AG and its subsidiaries ifb Suisse AG and ifb Asia Ltd. 2005 Development
of ifb group international business 2005 ifb-OKULAR ® 5.0 with operational risk management 2006 Founding of
consulting and software company ifb Lux S.A. and auditing company ifb Lux-Audit S.à r.l. in Luxembourg 2007 Founding
of auditing company ifb Treuhand AG Wirtschaftsprüfungsgesellschaft in Cologne (Germany) 2007 Founding of consult-
ing and software companies ifb Americas Inc. in Miami (USA) and ifb Austria AG in Vienna (Austria) 2007 Founding of
consulting and software company ifb Slovakia s.r.o. in Bratislava (Slovakia) 2007 Founding of consulting and software
company ifb France s.a.s. in Neuilly-sur-Seine (France) 2007 Founding of technology consulting company FS Technologie
in Wrocław (Poland) 2008 Dr. Walter Herzog steps down as ifb AG Executive Board member 2008 Christian Moser
appointed ifb AG Executive Board member 2008 Expansion of Business Intelligence technology service range 2008
Helmut Späth elected chairman and Horst Will honorary chairman of the ifb AG Supervisory Board
ifb Annual 07/08 55

ifb-group.com
ifb AG
Neumarkt-Galerie Neumarkt 2
50667 Cologne, Germany
Tel +49 221 92 18 41-0
Fax +49 221 92 18 41-300
ifb Americas Inc.
815 NW 57th Ave. Suite 220 (2nd floor)
Miami, FL 33126, USA
Tel +1 610 616 39 01
Fax +1 305 768 04 44
ifb Asia
consulting.software.results
(Beijing) Co., Ltd.
Room 318, Moma Tower
Chao Yang Bei Road No.199
Chaoyang District, Beijing, 100026
P.R. China
Tel +86 135 012 298 35
ifb Austria AG
Gumpendorfer Straße 5 / Top 23
1060 Vienna, Austria
Tel +43 1 581 03 22 0
Fax +43 1 581 03 22 99
ifb Czech Republic s.r.o.
Korunní 1740/129
130 00 Praha 3, Czech Republic
Tel +420 2 71 73 51 03
ifb France s.a.s.
164, Avenue Charles de Gaulle
92200 Neuilly-sur-Seine, France
Tel +33 1 77 69 49 90
Fax +33 1 47 38 20 04
ifb Hungary Kft.
Zugligeti út 6
1121 Budapest, Hungary
Tel +36 1 391-41 30
Fax +36 1 391-00 55
ifb International AG
Churerstrasse 82
8808 Pfäffikon SZ, Switzerland
Tel +41 55 416 10 90
Fax +41 55 416 10 99
ifb Lux S.A.
26, Rue Philippe II
2340 Luxembourg
Tel +352 26 73 28-1
Fax +352 26 73 28-99
ifb Slovakia s.r.o.
Stará Prievozská 2
82109 Bratislava, Slovakia
Tel +421 2 53 41 11 41
Fax +421 2 53 41 13 90
ifb Suisse AG
Thurgauerstrasse 54
8050 Zürich, Switzerland
Tel +41 44 318 70 00
Fax +41 44 318 70 10
2 Innovate IT
Paraguay 1478, Piso 2
Montevideo, C.P. 11100, Uruguay
Tel +5982 902 50 32
FS Technology Sp. z o.o.
ul. Ozynowa 32
53-009 Wrocław, Poland
Tel +48 71 750 40 50
Fax +48 71 750 40 51
ifb group network companies
ifb Lux-Audit S.à r.l.
26, Rue Philippe II
2340 Luxembourg
Tel +352 26 73 29-1
Fax +352 26 73 28-99
ifb Treuhand AG
Wirtschaftsprüfungsgesellschaft
Neumarkt-Galerie Neumarkt 2
50667 Cologne, Germany
Tel +49 221 355 85 55-0
Fax +49 221 355 85 55-9
info@ifb-group.com
www.ifb-group.com
ifb Annual 07/08