/
The 10 Most Influential Women In Cyber Security,2023 The 10 Most Influential Women In Cyber Security,2023

The 10 Most Influential Women In Cyber Security,2023 - PDF document

ciolook
ciolook . @ciolook
Follow
70 views
Uploaded On 2023-12-15

The 10 Most Influential Women In Cyber Security,2023 - PPT Presentation

This edition features a handful of The Most Influential Women In Cyber Security that are leading us to a better future ID: 1035336

#internationalbusinessmagazine #Globalbusinessmagazine #topbusinessmagazine #BestBusinessMagazineforentrepreneurs

Share:

Link:

Embed:

Download Presentation from below link

Download Pdf The PPT/PDF document "The 10 Most Influential Women In Cyber S..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

/vµšŒÇ/v]PZšuŒP]vPdŒv]všZÇŒµŒ]šÇE]Z 92/,,668(, 1SPGPVOE*NQBDUPO$ZCFS1SPUFDUJPO4BGFHVBSEJOH$PSQPSBUF)PSJ[POT,UPD&DOHWLÍV /ŒuoŸ˜/dDŒlšvZP]}vuŒ]}Œ‰}Œš]Œš}Œ:‰vd}}/všŒvŸ}vo~:d/ 7KH0RVW,QIOXHQWLDO:RPHQLQ&%(56HFXULW\ dZrvŒ]Zuvš/u‰š}(/}vvZv]vPšZ‰š}(ÇŒµŒ]šÇ $ZCFSTFDVSJUZ Äy«®z¶«‹³Ä&p~«®DUHQRWRQO\SURWHFWRUVRIGDWDEXWDOVRWKHIXQGDPHQWDO¨«ßzà—®WKDWXQGHUSLQRXUGLJLWDOVRFLHW\ $ZCFSTFDVSJUZ Äy«®z¶«‹³Ä&p~«®DUHQRWRQO\SURWHFWRUVRIGDWDEXWDOVRWKHIXQGDPHQWDO¨«ßzà—®WKDWXQGHUSLQRXUGLJLWDOVRFLHW\ )GRU V2RWH QWKHUDSLGO\DGYDQFLQJGLJLWDODJHZKHUHWKHVWDNHVLQF\EHUVSDFHDUHKLJKHUWKDQHYHURXUUHOLDQFHRQLQQRYDWLYHF\EHUVHFXULW\VROXWLRQVLVSDUDPRXQW$VJXDUGLDQVRIRXULQWHUFRQQHFWHGZRUOGF\EHUVHFXULW\OHDGHUVDUHQRWRQO\WDVNHGZLWKSURWHFWLQJVHQVLWLYHGDWDEXWDUHDOVRLQVWUXPHQWDOLQVKDSLQJWKHIXWXUHRIWHFKQRORJ\:LWKDIRFXVRQWKHVHIXQGDPHQWDOV&,2/RRNSUHVHQWVDFRPSUHKHQVLYHH[SORUDWLRQRIê7KH0RVW,QXHQWLDO:RPHQLQ&\EHU6HFXULW\ë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nOOGLVFRYHUVWRULHVRIWHQDFLW\LQJHQLRXVSUREOHPVROYLQJDQGDUHOHQWOHVVSXUVXLWRIH[FHOOHQFH)URPGLVUXSWLYHVWDUWXSVWRVHDVRQHGLQGXVWU\YHWHUDQVHDFKSUROHGOHDGHUEULQJVDXQLTXHSHUVSHFWLYHDQGVNLOOVHWWRF\EHUVHFXULW\7KHLUMRXUQH\VDQGDFFRPSOLVKPHQWVZLOOLQIRUPDQGLQVSLUHWKHQH[WJHQHUDWLRQRIF\EHUVHFXULW\SURIHVVLRQDOV7KHFROODERUDWLYHHIIRUWVDQGJURXQGEUHDNLQJLQQRYDWLRQVVKRZFDVHGLQWKLVIHDWXUHKLJKOLJKWWKHUHVLOLHQFHRIWKHF\EHUVHFXULW\FRPPXQLW\DQGLWVXQZDYHULQJFRPPLWPHQWWRVWD\LQJRQHVWHSDKHDGRIDGYHUVDULHV&,2/RRNH[WHQGVLWVJUDWLWXGHWRWKHIHDWXUHGOHDGHUVIRUVKDULQJWKHLUH[SHULHQFHVDQGH[SHUWLVH0D\WKHLUVWRULHVVHUYHDVDVRXUFHRIPRWLYDWLRQIRUDOOWKRVHGHGLFDWHGWRVHFXULQJRXUGLJLWDOIXWXUH)OLSWKURXJKWKHSDJHVDQGKDYHDGHOLJKWIXOUHDG .BLJOHB%JGGFSFODFJOUIF%JHJUBM#VTJOFTT"SFOB )GRU V2RWH )GRU V2RWH I )GRU V2RWH QWKHUDSLGO\DGYDQFLQJGLJLWDODJHZKHUHWKHVWDNHVLQF\EHUVSDFHDUHKLJKHUWKDQHYHURXUUHOLDQFHRQLQQRYDWLYHF\EHUVHFXULW\VROXWLRQVLVSDUDPRXQW$VJXDUGLDQVRIRXULQWHUFRQQHFWHGZRUOGF\EHUVHFXULW\OHDGHUVDUHQRWRQO\WDVNHGZLWKSURWHFWLQJVHQVLWLYHGDWDEXWDUHDOVRLQVWUXPHQWDOLQVKDSLQJWKHIXWXUHRIWHFKQRORJ\:LWKDIRFXVRQWKHVHIXQGDPHQWDOV&,2/RRNSUHVHQWVDFRPSUHKHQVLYHH[SORUDWLRQRIê7KH0RVW,QXHQWLDO:RPHQLQ&\EHU6HFXULW\ë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nOOGLVFRYHUVWRULHVRIWHQDFLW\LQJHQLRXVSUREOHPVROYLQJDQGDUHOHQWOHVVSXUVXLWRIH[FHOOHQFH)URPGLVUXSWLYHVWDUWXSVWRVHDVRQHGLQGXVWU\YHWHUDQVHDFKSUROHGOHDGHUEULQJVDXQLTXHSHUVSHFWLYHDQGVNLOOVHWWRF\EHUVHFXULW\7KHLUMRXUQH\VDQGDFFRPSOLVKPHQWVZLOOLQIRUPDQGLQVSLUHWKHQH[WJHQHUDWLRQRIF\EHUVHFXULW\SURIHVVLRQDOV7KHFROODERUDWLYHHIIRUWVDQGJURXQGEUHDNLQJLQQRYDWLRQVVKRZFDVHGLQWKLVIHDWXUHKLJKOLJKWWKHUHVLOLHQFHRIWKHF\EHUVHFXULW\FRPPXQLW\DQGLWVXQZDYHULQJFRPPLWPHQWWRVWD\LQJRQHVWHSDKHDGRIDGYHUVDULHV&,2/RRNH[WHQGVLWVJUDWLWXGHWRWKHIHDWXUHGOHDGHUVIRUVKDULQJWKHLUH[SHULHQFHVDQGH[SHUWLVH0D\WKHLUVWRULHVVHUYHDVDVRXUFHRIPRWLYDWLRQIRUDOOWKRVHGHGLFDWHGWRVHFXULQJRXUGLJLWDOIXWXUH)OLSWKURXJKWKHSDJHVDQGKDYHDGHOLJKWIXOUHDG .BLJOHB%JGGFSFODFJOUIF%JHJUBM#VTJOFTT"SFOB )GRU V2RWH )GRU V2RWH I  7«ŸÙ—® Ÿ›³›³® «³‹z—® ,QGXVWU\,QVLJKWV ¸àØåÚÜáÚÇåØá×æÜáçÛضìÕØåæØÖèåÜçìÁÜÖÛØ  ¼àãÔÖçâÙ´¼âá¸áÛÔáÖÜáÚçÛØ´æãØÖçæâÙ¶ìÕØåæØÖèåÜçì 'HEUD%DNHU ´ÃåâÙâèá׿ØÔ×Øå¸áæèåÜáÚçÛØÆØÖèåÜçìâÙÌâèå¶åÜçÜÖÔßÅØæâèåÖØæ 7HFK(QULFKPHQWV *DQLQHH-DLQ·åÜéÜáÚÁâéØßçÜØæÜáçÛضìÕØåæØÖèåÜçìÁÜÖÛØ  1SPGPVOE*NQBDUPO$ZCFS1SPUFDUJPO4BGFHVBSEJOH$PSQPSBUF)PSJ[POT ,UPD&DOHWLÍV  7«ŸÙ—® Ÿ›³›³® «³‹z—® ,QGXVWU\,QVLJKWV ¸àØåÚÜáÚÇåØá×æÜáçÛضìÕØåæØÖèåÜçìÁÜÖÛØ  ¼àãÔÖçâÙ´¼âá¸áÛÔáÖÜáÚçÛØ´æãØÖçæâÙ¶ìÕØåæØÖèåÜçì 'HEUD%DNHU ´ÃåâÙâèá׿ØÔ×Øå¸áæèåÜáÚçÛØÆØÖèåÜçìâÙÌâèå¶åÜçÜÖÔßÅØæâèåÖØæ 7HFK(QULFKPHQWV *DQLQHH-DLQ·åÜéÜáÚÁâéØßçÜØæÜáçÛضìÕØåæØÖèåÜçìÁÜÖÛØ  1SPGPVOE*NQBDUPO$ZCFS1SPUFDUJPO4BGFHVBSEJOH$PSQPSBUF)PSJ[POT ,UPD&DOHWLÍV %ULHI&RPSDQ\1DPH )HDWXUHG3HUVRQ 'HEUD%DNHU'LUHFWRURI,QIRUPDWLRQ6HFXULW\&,62'HEUDKHOSVKHUFOLHQWVXVHDQGDGRSW5HG6HDOSURGXFWVDQGVHUYLFHVWRLPSURYHWKHLUF\EHUVHFXULW\SRVWXUHE\SURYLGLQJF\EHUYLVLELOLW\FRPSOLDQFHDQGULVNPDQDJHPHQW'DQLHOOD7UDLQR*URXS&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU'DQLHOODLVDFRQVLVWHQWO\KLJKSHUIRUPLQJH[HFXWLYHZLWKVLJQL¿FDQWH[SHULHQFHLQYDULRXVLQGXVWULHV:HVIDUPHUVZHVIDUPHUVFRPDX5HG6HDOUHGVHDOQHW$QQ0HQQHQVLVWKH0DQDJHURIWKH(XURSHDQ&RPPLVVLRQ\nV&\EHU$ZDUH3URJUDPPHDLPHGDWUDLVLQJWKHF\EHUDZDUHQHVVRIWKHZKROH&RPPLVVLRQVWD\ru:RPHQ&\EHU%HOJLXPZRPHQF\EHUHX)LOLSL3LUHVKDVULVHQDVD&\EHUVHFXULW\5HVHDUFKHUKHOSLQJFRPSDQLHVEXLOGVRYHUHLJQW\DQGVHFXULW\RYHUDFFHVVDQGSULYLOHJHGLQIRUPDWLRQ)LOLSL3LUHV¿OLSLSLUHVFRP*DQLQHH-DLQUHRUJDQL]HGWKHRYHUDOOF\EHUVHFXULW\VHUYLFHR\ruHULQJDW(=(1WRLQFOXGHWKHPRVWH\ruHFWLYHDQGFRQVLVWHQWPHWKRGRORJLHVWKDWVHUYHVWKHLUFOLHQWVVHFXULW\UHTXLUHPHQWVZLWKWKHKLJKHVWTXDOLW\(=(1&RPSXWHU6HUYLFHV,QFH]HQLQFFRP $QQ0HQQHQV)RXQGLQJ0HPEHU )LOLSL3LUHV6HFXULW\5HVHDUFKHU&\EHUVHFXULW\$GYRFDWH$GYLVRU*DQLQHH-DLQ,QIRUPDWLRQ6HFXULW\DQG3ULYDF\&RQVXOWDQW ·Øãèçì¸×ÜçâåððÿBüðXÿ�ãÀÔáÔÚÜáÚ¸×ÜçâåP¾Jü�ãÿãð"ãØ"�¾ ÉÜæèÔßÜíØåðð"¾bãð¾JãB´åç™·ØæÜÚá·ÜåØÖçâåðð"¾bÿBðX�¾Jÿ´ææâÖÜÔçØ·ØæÜÚáØåððN¾ãB"ð�¾ðð ÆØáÜâåÆÔßØæÀÔáÔÚØåð¡ÿB"ðˆ»¼ð�OJ�ãð"»¶èæçâàØåÆèÖÖØææÀÔáÔÚØåðX¾JJðRÿßãÆÔßØæ¸ëØÖèçÜéØæððˆÿ¼ð€ÿJü ÇØÖÛáÜÖÔß»ØÔ×ððyãJ�ãð�¾ißãÇØÖÛáÜÖÔ߶âáæèßçÔáçðð ÿÙJ"�ð"ÿB1RYHPEHU¶âãìåÜÚÛçû¥£¥¦¶¼Â¿Â¾Ÿ´ßßåÜÚÛçæåØæØåéØסÇÛØÖâáçØáçÔá×ÜàÔÚØæèæØ×ÜáçÛÜæàÔÚÔíÜáØæÛâèß×áâçÕØåØãåâ×èÖØ×âåçåÔáæàÜççØ×ÜáÔáìÙâåàâåÕìÔáìàØÔáæŸØßØÖçåâáÜÖŸàØÖÛÔáÜÖÔߟãÛâçâÖâãìÜáÚŸåØÖâå×ÜáÚâåâçÛØåêÜæØŸêÜçÛâèçãåÜâåãØåàÜææÜâáÙåâ඼¿Â¾¡ÅØãåÜáçåÜÚÛçæåØàÔÜáæâßØßìêÜçÛ¶¼Â¿Â¾¡êêê¡ÙÔÖØÕââÞ¡Öâà¢ÖÜâßââÞêêê¡çêÜççØå¡Öâà¢ÖÜâßââÞ&¾ÿðÜáÙâ³ÖÜâßââÞ¡Öâà8"�ð€OØBÙ�ÿ;Jÿ"êêê¡ÖÜâßââÞ¡Öâà y"" ¾ðXð¾B¾ ¶ÂÁǸÁÇ·¸Æ¼ºÁÆ´¿¸ÆǸ¶»Á¼¶´¿¹Â¿¿ÂÊÈÆÂÁʸ´Å¸´¿Æ´ɴ¼¿´µ¿¸ÂÁ¶ÂÁÇ´¶ÇÈÆÂÁ ¸×Üçâå Üá ¶ÛÜØÙ æÔßØæ³ÖÜâßââÞ¡ÖâàÆÀ¸ ÆÀ ÅØæØÔåÖÛ´áÔßìæçðð&�ÿÙð€ÿJüƸ¸ëØÖèçÜéØððãð€;ãÙ�ã 0HUULWW%DHU&,620HUULWWLVDQDPEDVVDGRUEHWZHHQWKHVLORHGSURIHVVLRQDOZRUOGVRIVHFXULW\DQGHPHUJLQJWHFKQRORJ\0DOLQL5DR&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU0DOLQLJXLGHVKHURUJDQL]DWLRQWROHYHUDJHWKHWUXHLPSDFWRIGHVLJQZKHQUHDG\WRPRYHWRDPRUHGHVLJQFHQWHUHGPRGHO'HHSOHDUQF\EHU$,GHHSOHDUQF\EHUDL/DFHZRUNODFHZRUNFRP,UPD&DOHWL²DQDFFRPSOLVKHG&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHUZLWKDVWHOODUWUDFNUHFRUGVSDQQLQJRYHUWZRGHFDGHV-DSDQ7REDFFR,QWHUQDWLRQDOMWLFRP2OD\LQND1DD']DPD:LOVRQ.R¿LVDG\QDPLFOHDGHUDQGDQ,QIRUPDWLRQ6HFXULW\DQG3ULYDF\6SHFLDOLVWZKRKDVPDGHVLJQL¿FDQWFRQWULEXWLRQVWRWKLVLQGXVWU\(ULFVVRQHULFVVRQFRP3UL\DLVD&\EHU6HFXULW\DQG,75LVN([HFXWLYHZLWKLQGHSWKH[SHUWLVHLQEXLOGLQJWUDQVIRUPDWLRQDOHQWHUSULVHVHFXULW\SURJUDPVYLDEXVLQHVVHQDEOLQJSRVLWLYHLQIRUPDWLRQVHFXULW\DQGVWURQJF\EHUUHVLOLHQFH)LHUD&DSLWDO¿HUDFDSLWDOFRP ,UPD&DOHWL&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU 2OD\LQND:LOVRQ.R¿,QIRUPDWLRQ6HFXULW\DQG3ULYDF\6SHFLDOLVW3UL\D6LUZDQL*OREDO&KLHI,QIRUPDWLRQ6HFXULW\2\rvFH %ULHI&RPSDQ\1DPH )HDWXUHG3HUVRQ 'HEUD%DNHU'LUHFWRURI,QIRUPDWLRQ6HFXULW\&,62'HEUDKHOSVKHUFOLHQWVXVHDQGDGRSW5HG6HDOSURGXFWVDQGVHUYLFHVWRLPSURYHWKHLUF\EHUVHFXULW\SRVWXUHE\SURYLGLQJF\EHUYLVLELOLW\FRPSOLDQFHDQGULVNPDQDJHPHQW'DQLHOOD7UDLQR*URXS&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU'DQLHOODLVDFRQVLVWHQWO\KLJKSHUIRUPLQJH[HFXWLYHZLWKVLJQL¿FDQWH[SHULHQFHLQYDULRXVLQGXVWULHV:HVIDUPHUVZHVIDUPHUVFRPDX5HG6HDOUHGVHDOQHW$QQ0HQQHQVLVWKH0DQDJHURIWKH(XURSHDQ&RPPLVVLRQ\nV&\EHU$ZDUH3URJUDPPHDLPHGDWUDLVLQJWKHF\EHUDZDUHQHVVRIWKHZKROH&RPPLVVLRQVWD\ru:RPHQ&\EHU%HOJLXPZRPHQF\EHUHX)LOLSL3LUHVKDVULVHQDVD&\EHUVHFXULW\5HVHDUFKHUKHOSLQJFRPSDQLHVEXLOGVRYHUHLJQW\DQGVHFXULW\RYHUDFFHVVDQGSULYLOHJHGLQIRUPDWLRQ)LOLSL3LUHV¿OLSLSLUHVFRP*DQLQHH-DLQUHRUJDQL]HGWKHRYHUDOOF\EHUVHFXULW\VHUYLFHR\ruHULQJDW(=(1WRLQFOXGHWKHPRVWH\ruHFWLYHDQGFRQVLVWHQWPHWKRGRORJLHVWKDWVHUYHVWKHLUFOLHQWVVHFXULW\UHTXLUHPHQWVZLWKWKHKLJKHVWTXDOLW\(=(1&RPSXWHU6HUYLFHV,QFH]HQLQFFRP $QQ0HQQHQV)RXQGLQJ0HPEHU )LOLSL3LUHV6HFXULW\5HVHDUFKHU&\EHUVHFXULW\$GYRFDWH$GYLVRU*DQLQHH-DLQ,QIRUPDWLRQ6HFXULW\DQG3ULYDF\&RQVXOWDQW ·Øãèçì¸×ÜçâåððÿBüðXÿ�ãÀÔáÔÚÜáÚ¸×ÜçâåP¾Jü�ãÿãð"ãØ"�¾ ÉÜæèÔßÜíØåðð"¾bãð¾JãB´åç™·ØæÜÚá·ÜåØÖçâåðð"¾bÿBðX�¾Jÿ´ææâÖÜÔçØ·ØæÜÚáØåððN¾ãB"ð�¾ðð ÆØáÜâåÆÔßØæÀÔáÔÚØåð¡ÿB"ðˆ»¼ð�OJ�ãð"»¶èæçâàØåÆèÖÖØææÀÔáÔÚØåðX¾JJðRÿßãÆÔßØæ¸ëØÖèçÜéØæððˆÿ¼ð€ÿJü ÇØÖÛáÜÖÔß»ØÔ×ððyãJ�ãð�¾ißãÇØÖÛáÜÖÔ߶âáæèßçÔáçðð ÿÙJ"�ð"ÿB1RYHPEHU¶âãìåÜÚÛçû¥£¥¦¶¼Â¿Â¾Ÿ´ßßåÜÚÛçæåØæØåéØסÇÛØÖâáçØáçÔá×ÜàÔÚØæèæØ×ÜáçÛÜæàÔÚÔíÜáØæÛâèß×áâçÕØåØãåâ×èÖØ×âåçåÔáæàÜççØ×ÜáÔáìÙâåàâåÕìÔáìàØÔáæŸØßØÖçåâáÜÖŸàØÖÛÔáÜÖÔߟãÛâçâÖâãìÜáÚŸåØÖâå×ÜáÚâåâçÛØåêÜæØŸêÜçÛâèçãåÜâåãØåàÜææÜâáÙåâ඼¿Â¾¡ÅØãåÜáçåÜÚÛçæåØàÔÜáæâßØßìêÜçÛ¶¼Â¿Â¾¡êêê¡ÙÔÖØÕââÞ¡Öâà¢ÖÜâßââÞêêê¡çêÜççØå¡Öâà¢ÖÜâßââÞ&¾ÿðÜáÙâ³ÖÜâßââÞ¡Öâà8"�ð€OØBÙ�ÿ;Jÿ"êêê¡ÖÜâßââÞ¡Öâà y"" ¾ðXð¾B¾ ¶ÂÁǸÁÇ·¸Æ¼ºÁÆ´¿¸ÆǸ¶»Á¼¶´¿¹Â¿¿ÂÊÈÆÂÁʸ´Å¸´¿Æ´ɴ¼¿´µ¿¸ÂÁ¶ÂÁÇ´¶ÇÈÆÂÁ ¸×Üçâå Üá ¶ÛÜØÙ æÔßØæ³ÖÜâßââÞ¡ÖâàÆÀ¸ ÆÀ ÅØæØÔåÖÛ´áÔßìæçðð&�ÿÙð€ÿJüƸ¸ëØÖèçÜéØððãð€;ãÙ�ã 0HUULWW%DHU&,620HUULWWLVDQDPEDVVDGRUEHWZHHQWKHVLORHGSURIHVVLRQDOZRUOGVRIVHFXULW\DQGHPHUJLQJWHFKQRORJ\0DOLQL5DR&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU0DOLQLJXLGHVKHURUJDQL]DWLRQWROHYHUDJHWKHWUXHLPSDFWRIGHVLJQZKHQUHDG\WRPRYHWRDPRUHGHVLJQFHQWHUHGPRGHO'HHSOHDUQF\EHU$,GHHSOHDUQF\EHUDL/DFHZRUNODFHZRUNFRP,UPD&DOHWL²DQDFFRPSOLVKHG&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHUZLWKDVWHOODUWUDFNUHFRUGVSDQQLQJRYHUWZRGHFDGHV-DSDQ7REDFFR,QWHUQDWLRQDOMWLFRP2OD\LQND1DD']DPD:LOVRQ.R¿LVDG\QDPLFOHDGHUDQGDQ,QIRUPDWLRQ6HFXULW\DQG3ULYDF\6SHFLDOLVWZKRKDVPDGHVLJQL¿FDQWFRQWULEXWLRQVWRWKLVLQGXVWU\(ULFVVRQHULFVVRQFRP3UL\DLVD&\EHU6HFXULW\DQG,75LVN([HFXWLYHZLWKLQGHSWKH[SHUWLVHLQEXLOGLQJWUDQVIRUPDWLRQDOHQWHUSULVHVHFXULW\SURJUDPVYLDEXVLQHVVHQDEOLQJSRVLWLYHLQIRUPDWLRQVHFXULW\DQGVWURQJF\EHUUHVLOLHQFH)LHUD&DSLWDO¿HUDFDSLWDOFRP ,UPD&DOHWL&KLHI,QIRUPDWLRQ6HFXULW\2\rvFHU 2OD\LQND:LOVRQ.R¿,QIRUPDWLRQ6HFXULW\DQG3ULYDF\6SHFLDOLVW3UL\D6LUZDQL*OREDO&KLHI,QIRUPDWLRQ6HFXULW\2\rvFH 1SPGPVOE*NQBDUPO$ZCFS1SPUFDUJPO4BGFHVBSEJOH$PSQPSBUF)PSJ[POT ,UPD&DOHWLÍV&RYHU6WRU\ &\EHUVHFXULW\LPSOHPHQWDWLRQGHPDQGVUHVLOLHQFHDQGGHWHUPLQDWLRQEXWWKHKXPDQIDFWRUUHPDLQVWKHJUHDWHVWFKDOOHQJH/ŒuoŸ˜/dDŒlšvZP]}vuŒ]}Œ‰}Œš]Œš}Œ:‰vd}}/všŒvŸ}vo~:d/ 1SPGPVOE*NQBDUPO$ZCFS1SPUFDUJPO4BGFHVBSEJOH$PSQPSBUF)PSJ[POT ,UPD&DOHWLÍV&RYHU6WRU\ &\EHUVHFXULW\LPSOHPHQWDWLRQGHPDQGVUHVLOLHQFHDQGGHWHUPLQDWLRQEXWWKHKXPDQIDFWRUUHPDLQVWKHJUHDWHVWFKDOOHQJH/ŒuoŸ˜/dDŒlšvZP]}vuŒ]}Œ‰}Œš]Œš}Œ:‰vd}}/všŒvŸ}vo~:d/ , QWKHEDFNJURXQGRIJOREDOHQWHUSULVHVWKHKHDUWEHDWRIPXOWLQDWLRQDOFRUSRUDWLRQVV\QFKURQL]HVZLWKFXWWLQJHGJHWHFKQRORJ\DQGULVNPDQDJHPHQW7KLVV\QHUJ\QGVLWVFKDPSLRQLQ,UPD&DOHWLæ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èVGLVFRYHUWKHWUDQVIRUPDWLYHIRUFHEHKLQGJOREDOF\EHUVHFXULW\HPEUDFLQJDIXWXUHIRUWLHGE\KHUH[SHUWLVH)URP%LWVWR%ULOOLDQFH,QWKHUHDOPRIPRGHUQEXVLQHVVWKHLPSHUDWLYHRIKHLJKWHQHGF\EHUVHFXULW\DZDUHQHVVUHYHUEHUDWHVORXGO\:LWKLQWKHFRUULGRUVRI-DSDQ7REDFFR,QWHUQDWLRQDO -7, WKHVHVHQWLPHQWVHFKRSURIRXQGO\ê2XUFRUHYDOXHVJXLGHXVXUJLQJHDFKWHDPPHPEHUWRFKDPSLRQRSHUDWLRQDOH[FHOOHQFHë,UPDHPSKDVL]HV,QKHUUROHVKHRUFKHVWUDWHVWKHLPSOHPHQWDWLRQRIFUXFLDOF\EHUVHFXULW\SUDFWLFHVSLYRWDOIRUWKHVHDPOHVVRZRIEXVLQHVVRSHUDWLRQVDQGWKHVDQFWLW\RIGDWD,UPDèVZLVGRPUHVRQDWHVê$GHTXDWHULVNDVVHVVPHQWVVKLHOGRXU,QIRUPDWLRQ6RIWZDUHDQG+DUGZDUHæDOLQFKSLQLQRXUF\EHUVHFXULW\VWUDWHJ\ë6KHDGGVê,WèVWKHEHGURFNRIRXUF\EHUVHFXULW\HIIRUWVë-7,GRHVQèWMXVWWDONWKHWDONæWKH\ZDONWKHZDONê:HèUHDOODERXWWXUQLQJLGHDVLQWRDFWLRQë,UPDH[SODLQVê:HFDOFXODWHULVNVSURDFWLYHO\PDNLQJVXUHZHVWD\RQHVWHSDKHDGLQWKLVHYHUHYROYLQJODQGVFDSHë)RU,UPDDQGKHUFROOHDJXHVDW-7,LWèVFOHDUWKDWLQWRGD\èVGLJLWDODJHF\EHUVHFXULW\LVQèWMXVWDEX]]ZRUGæLWèVDIXQGDPHQWDOQHFHVVLW\WRNHHSEXVLQHVVHVVHFXUHDQGWKULYLQJ%H\RQGWKH)LUHZDOOHDUVDJRGXULQJDFKDOOHQJLQJ,7DXGLW,UPDFRQIURQWHGDVLJQLFDQWQHWZRUNFRPSURPLVHëWKHLQFLGHQWXQIROGV7KHLPPHGLDWHFORVXUHRIWKHVHFXULW\JDSZDVFUXFLDOEXW,NQHZWKHLVVXHUDQGHHSHUDFURVVPXOWLSOHEXVLQHVVORFDWLRQV)RFXVLQJVROHO\RQRQHXQLWZRXOGQèWHOHYDWHRXURYHUDOOVHFXULW\ë)RU,UPDF\EHUVHFXULW\YLFWRULHVDUHDERXWXQGHUVWDQGLQJWKHEURDGHUODQGVFDSHê,QWKLVHOGLWèVPRUHWKDQDVLQJOHWULXPSKæLWèVDERXWVWHSSLQJEDFNFRPSUHKHQGLQJHYHU\OD\HURIWKHVLWXDWLRQëVKHH[SODLQV'HVSLWHUHVLVWDQFH,UPDPDGHDFUXFLDOGHFLVLRQ5HDVVLJQLQJWKHDXGLWQGLQJWR,7DIIHFWLQJRXU.H\3HUIRUPDQFH,QGLFDWRUVZDVWRXJKEXWLWZDVQHFHVVDU\ë,UPDèVH[SHULHQFHKLJKOLJKWVDYLWDOOHVVRQ&\EHUVHFXULW\LVQèWMXVWDERXWLVRODWHG[HVæLWèVDERXWDFRPSUHKHQVLYHRUJDQL]DWLRQZLGHDSSURDFKê:HZHUHDOOVWULYLQJIRUDVHFXUHQHWZRUNHQYLURQPHQWëVKHVKDUHV,QWKLVGLJLWDODJH,UPDèVSHUVSHFWLYHVHUYHVDVDUHPLQGHUWKDWLQWKHUHDOPRIF\EHUVHFXULW\WKHELJSLFWXUHLVSDUDPRXQWHQVXULQJQRWMXVWYLFWRULHVEXWODVWLQJVHFXULW\IRUHYHU\OD\HURIWKHEXVLQHVV6HFXULQJ6RXOV1RW-XVW6HUYHUV6HFXULW\LVQèWMXVWDFRUSRUDWHFRQFHUQæLWèVDZD\RIOLIHë,UPDDIUPVHPSKDVL]LQJWKDWSHUVRQDOVHFXULW\LVDVYLWDODVVHFXULQJDFRPSDQ\ê:HPXVWYDOXHVHFXULW\LQHYHU\DVSHFWIRVWHULQJDFRPPXQLW\RILQWHOOLJHQWSUHYHQWLYHFRQWUROVUDWKHUWKDQUHDFWLYHRQHVë,UPDXQGHUOLQHVWKHFROOHFWLYHUHVSRQVLELOLW\ê(DFKRIXVFRQWULEXWHVWRWKHVROXWLRQ8QGHUVWDQGLQJWKLVHQKDQFHVRXUVHFXULW\VLJQLFDQWO\ë%HLQJYLJLODQWLVNH\VKHDGYLVHVê)URPSKLVKLQJVFDPVWRHPDLOVHFXULW\ZHQHHGWREHDOHUWXSGDWLQJFRQWDFWVDQGHQDEOLQJKLJKHUVHFXULW\PHDVXUHV,WèVDFRQVWDQWHIIRUWë)RU,UPDWKLVYLJLODQFHLVURRWHGLQHPSDWK\ê&DULQJIRULQIRUPDWLRQLVFDULQJIRURWKHUVëVKHVWDWHV7KLVHWKRVWUDQVIRUPVVHFXULW\IURPDPHUHWDVNLQWRDVKDUHGFRPPLWPHQWUHPLQGLQJDOOWKDWLQWKLVGLJLWDODJHVDIHJXDUGLQJRXUSHUVRQDOVSDFHVLVQRWMXVWDERXWSURWHFWLQJRXUVHOYHVEXWDFWLYHO\QXUWXULQJDVDIHUPRUHVHFXUHHQYLURQPHQWIRUHYHU\RQH%\WH%DFN&\EHUVHFXULW\LPSOHPHQWDWLRQGHPDQGVUHVLOLHQFHDQGGHWHUPLQDWLRQEXWWKHKXPDQIDFWRUUHPDLQVWKHJUHDWHVWFKDOOHQJHë,UPDUHHFWVGUDZLQJIURPKHUH[SHULHQFHOHDGLQJDFULWLFDO7HFKQRORJ\SURMHFWGXULQJDPHUJHURIWZRODUJHFRUSRUDWLRQV7KHPHUJHUUHTXLUHGVWULQJHQWFRQWUROVDFURVVWHFKQRORJ\OHYHOVHQFRXQWHULQJLQWHQVHUHVLVWDQFHGXHWRYDU\LQJRUJDQL]DWLRQDOFRQWUROOHYHOV,QWKHIDFHRIDGYHUVLW\,UPDWRRNGHFLVLYHDFWLRQ6WRSSLQJWRDVVHVVWKHVLWXDWLRQDQGVHHNLQJH[SHUWKHOSZDVFUXFLDOëVKHHPSKDVL]HV5HFRJQL]LQJWKHXUJHQF\VKHUHGHQHGWKHVWUDWHJ\ZLWKDQH[SHUWFRQGXFWHGDSURMHFWDXGLWWRLGHQWLI\JDSVDQGHQOLVWHGDEXVLQHVVH[SHUWWRUHQHSURFHGXUHV+HUVWRU\WHDFKHVYDOXDEOHOHVVRQVê3DXVLQJWRHYDOXDWHDQGDVNLQJIRUKHOSFDQPDNHDOOWKHGLIIHUHQFHë,UPDVWDWHV7KHRXWFRPHZDVUHPDUNDEOHæWKHSURMHFWZHQWOLYHRQWLPHXQGHUEXGJHWDQGPRVWLPSRUWDQWO\ZLWKWKHQHFHVVDU\VHFXULW\PHDVXUHVLQWDFW 6FKHGXOHWLPHIRU\RXUVHOIVHWERXQGDULHV3ODQVSHFLILFPRPHQWVOLNHORQJOXQFKHVRUOHDYLQJHDUO\WZLFHDZHHN0DNHWKHVHPRPHQWVQRQQHJRWLDEOH , QWKHEDFNJURXQGRIJOREDOHQWHUSULVHVWKHKHDUWEHDWRIPXOWLQDWLRQDOFRUSRUDWLRQVV\QFKURQL]HVZLWKFXWWLQJHGJHWHFKQRORJ\DQGULVNPDQDJHPHQW7KLVV\QHUJ\QGVLWVFKDPSLRQLQ,UPD&DOHWLæ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èVGLVFRYHUWKHWUDQVIRUPDWLYHIRUFHEHKLQGJOREDOF\EHUVHFXULW\HPEUDFLQJDIXWXUHIRUWLHGE\KHUH[SHUWLVH)URP%LWVWR%ULOOLDQFH,QWKHUHDOPRIPRGHUQEXVLQHVVWKHLPSHUDWLYHRIKHLJKWHQHGF\EHUVHFXULW\DZDUHQHVVUHYHUEHUDWHVORXGO\:LWKLQWKHFRUULGRUVRI-DSDQ7REDFFR,QWHUQDWLRQDO -7, WKHVHVHQWLPHQWVHFKRSURIRXQGO\ê2XUFRUHYDOXHVJXLGHXVXUJLQJHDFKWHDPPHPEHUWRFKDPSLRQRSHUDWLRQDOH[FHOOHQFHë,UPDHPSKDVL]HV,QKHUUROHVKHRUFKHVWUDWHVWKHLPSOHPHQWDWLRQRIFUXFLDOF\EHUVHFXULW\SUDFWLFHVSLYRWDOIRUWKHVHDPOHVVRZRIEXVLQHVVRSHUDWLRQVDQGWKHVDQFWLW\RIGDWD,UPDèVZLVGRPUHVRQDWHVê$GHTXDWHULVNDVVHVVPHQWVVKLHOGRXU,QIRUPDWLRQ6RIWZDUHDQG+DUGZDUHæDOLQFKSLQLQRXUF\EHUVHFXULW\VWUDWHJ\ë6KHDGGVê,WèVWKHEHGURFNRIRXUF\EHUVHFXULW\HIIRUWVë-7,GRHVQèWMXVWWDONWKHWDONæWKH\ZDONWKHZDONê:HèUHDOODERXWWXUQLQJLGHDVLQWRDFWLRQë,UPDH[SODLQVê:HFDOFXODWHULVNVSURDFWLYHO\PDNLQJVXUHZHVWD\RQHVWHSDKHDGLQWKLVHYHUHYROYLQJODQGVFDSHë)RU,UPDDQGKHUFROOHDJXHVDW-7,LWèVFOHDUWKDWLQWRGD\èVGLJLWDODJHF\EHUVHFXULW\LVQèWMXVWDEX]]ZRUGæLWèVDIXQGDPHQWDOQHFHVVLW\WRNHHSEXVLQHVVHVVHFXUHDQGWKULYLQJ%H\RQGWKH)LUHZDOOHDUVDJRGXULQJDFKDOOHQJLQJ,7DXGLW,UPDFRQIURQWHGDVLJQLFDQWQHWZRUNFRPSURPLVHëWKHLQFLGHQWXQIROGV7KHLPPHGLDWHFORVXUHRIWKHVHFXULW\JDSZDVFUXFLDOEXW,NQHZWKHLVVXHUDQGHHSHUDFURVVPXOWLSOHEXVLQHVVORFDWLRQV)RFXVLQJVROHO\RQRQHXQLWZRXOGQèWHOHYDWHRXURYHUDOOVHFXULW\ë)RU,UPDF\EHUVHFXULW\YLFWRULHVDUHDERXWXQGHUVWDQGLQJWKHEURDGHUODQGVFDSHê,QWKLVHOGLWèVPRUHWKDQDVLQJOHWULXPSKæLWèVDERXWVWHSSLQJEDFNFRPSUHKHQGLQJHYHU\OD\HURIWKHVLWXDWLRQëVKHH[SODLQV'HVSLWHUHVLVWDQFH,UPDPDGHDFUXFLDOGHFLVLRQ5HDVVLJQLQJWKHDXGLWQGLQJWR,7DIIHFWLQJRXU.H\3HUIRUPDQFH,QGLFDWRUVZDVWRXJKEXWLWZDVQHFHVVDU\ë,UPDèVH[SHULHQFHKLJKOLJKWVDYLWDOOHVVRQ&\EHUVHFXULW\LVQèWMXVWDERXWLVRODWHG[HVæLWèVDERXWDFRPSUHKHQVLYHRUJDQL]DWLRQZLGHDSSURDFKê:HZHUHDOOVWULYLQJIRUDVHFXUHQHWZRUNHQYLURQPHQWëVKHVKDUHV,QWKLVGLJLWDODJH,UPDèVSHUVSHFWLYHVHUYHVDVDUHPLQGHUWKDWLQWKHUHDOPRIF\EHUVHFXULW\WKHELJSLFWXUHLVSDUDPRXQWHQVXULQJQRWMXVWYLFWRULHVEXWODVWLQJVHFXULW\IRUHYHU\OD\HURIWKHEXVLQHVV6HFXULQJ6RXOV1RW-XVW6HUYHUV6HFXULW\LVQèWMXVWDFRUSRUDWHFRQFHUQæLWèVDZD\RIOLIHë,UPDDIUPVHPSKDVL]LQJWKDWSHUVRQDOVHFXULW\LVDVYLWDODVVHFXULQJDFRPSDQ\ê:HPXVWYDOXHVHFXULW\LQHYHU\DVSHFWIRVWHULQJDFRPPXQLW\RILQWHOOLJHQWSUHYHQWLYHFRQWUROVUDWKHUWKDQUHDFWLYHRQHVë,UPDXQGHUOLQHVWKHFROOHFWLYHUHVSRQVLELOLW\ê(DFKRIXVFRQWULEXWHVWRWKHVROXWLRQ8QGHUVWDQGLQJWKLVHQKDQFHVRXUVHFXULW\VLJQLFDQWO\ë%HLQJYLJLODQWLVNH\VKHDGYLVHVê)URPSKLVKLQJVFDPVWRHPDLOVHFXULW\ZHQHHGWREHDOHUWXSGDWLQJFRQWDFWVDQGHQDEOLQJKLJKHUVHFXULW\PHDVXUHV,WèVDFRQVWDQWHIIRUWë)RU,UPDWKLVYLJLODQFHLVURRWHGLQHPSDWK\ê&DULQJIRULQIRUPDWLRQLVFDULQJIRURWKHUVëVKHVWDWHV7KLVHWKRVWUDQVIRUPVVHFXULW\IURPDPHUHWDVNLQWRDVKDUHGFRPPLWPHQWUHPLQGLQJDOOWKDWLQWKLVGLJLWDODJHVDIHJXDUGLQJRXUSHUVRQDOVSDFHVLVQRWMXVWDERXWSURWHFWLQJRXUVHOYHVEXWDFWLYHO\QXUWXULQJDVDIHUPRUHVHFXUHHQYLURQPHQWIRUHYHU\RQH%\WH%DFN&\EHUVHFXULW\LPSOHPHQWDWLRQGHPDQGVUHVLOLHQFHDQGGHWHUPLQDWLRQEXWWKHKXPDQIDFWRUUHPDLQVWKHJUHDWHVWFKDOOHQJHë,UPDUHHFWVGUDZLQJIURPKHUH[SHULHQFHOHDGLQJDFULWLFDO7HFKQRORJ\SURMHFWGXULQJDPHUJHURIWZRODUJHFRUSRUDWLRQV7KHPHUJHUUHTXLUHGVWULQJHQWFRQWUROVDFURVVWHFKQRORJ\OHYHOVHQFRXQWHULQJLQWHQVHUHVLVWDQFHGXHWRYDU\LQJRUJDQL]DWLRQDOFRQWUROOHYHOV,QWKHIDFHRIDGYHUVLW\,UPDWRRNGHFLVLYHDFWLRQ6WRSSLQJWRDVVHVVWKHVLWXDWLRQDQGVHHNLQJH[SHUWKHOSZDVFUXFLDOëVKHHPSKDVL]HV5HFRJQL]LQJWKHXUJHQF\VKHUHGHQHGWKHVWUDWHJ\ZLWKDQH[SHUWFRQGXFWHGDSURMHFWDXGLWWRLGHQWLI\JDSVDQGHQOLVWHGDEXVLQHVVH[SHUWWRUHQHSURFHGXUHV+HUVWRU\WHDFKHVYDOXDEOHOHVVRQVê3DXVLQJWRHYDOXDWHDQGDVNLQJIRUKHOSFDQPDNHDOOWKHGLIIHUHQFHë,UPDVWDWHV7KHRXWFRPHZDVUHPDUNDEOHæWKHSURMHFWZHQWOLYHRQWLPHXQGHUEXGJHWDQGPRVWLPSRUWDQWO\ZLWKWKHQHFHVVDU\VHFXULW\PHDVXUHVLQWDFW 6FKHGXOHWLPHIRU\RXUVHOIVHWERXQGDULHV3ODQVSHFLILFPRPHQWVOLNHORQJOXQFKHVRUOHDYLQJHDUO\WZLFHDZHHN0DNHWKHVHPRPHQWVQRQQHJRWLDEOH ,UPDèVH[SHULHQFHXQGHUOLQHVWKHVLJQLFDQFHRIDGDSWDELOLW\H[SHUWLVHDQGFROODERUDWLRQLQRYHUFRPLQJFKDOOHQJHVRIIHULQJDYDOXDEOHURDGPDSIRUDQ\RQHQDYLJDWLQJWKHLQWULFDWHODQGVFDSHRIF\EHUVHFXULW\LPSOHPHQWDWLRQV4XDOLW\2YHU4XDQWLW\,WèVQRWDERXWWKHTXDQWLW\RIWLPHEXWWKHTXDOLW\ë,UPDHPSKDVL]HVHFKRLQJDWLPHOHVVWUXWK,QWKH,7ZRUOGLUUHJXODUKRXUVODWHQLJKWVDQGZHHNHQGVDUHWKHQRUP7RQDYLJDWHWKLVKDYLQJDVXSSRUWLYHSHUVRQWRFRQGHLQLVLQYDOXDEOHê+DYLQJVRPHRQHZKROLVWHQVDQGXQGHUVWDQGVOLIHèVFKDOOHQJHVLVHVVHQWLDOë,UPDDGYLVHV+DYLQJDSHUVRQDOSDVVLRQZKHWKHULWèVVSRUWV\RJDRUFRRNLQJSURYLGHVDPXFKQHHGHGRXWOHW,UPDDGYRFDWHVIRUSURDFWLYHSODQQLQJê6FKHGXOHWLPHIRU\RXUVHOIVHWERXQGDULHV3ODQVSHFLFPRPHQWVOLNHORQJOXQFKHVRUOHDYLQJHDUO\WZLFHDZHHN0DNHWKHVHPRPHQWVQRQQHJRWLDEOHë,UPDLVUHVROXWHDERXWYDFDWLRQVê7KH\èUHQRQQHJRWLDEOHëVKHDVVHUWV(YHQLQWKHGHPDQGLQJ,7ODQGVFDSHWDNLQJEUHDNVLVYLWDO7UHDWYDFDWLRQVDVHVVHQWLDOë,UPDLQVLVWV:KHWKHULWèVDVHUHQHEHDFKRUH[SORULQJDQHZFLW\WDNLQJWLPHRIILVDVFUXFLDODVDQ\ZRUNFRPPLWPHQW,Q,UPDèVSHUVSHFWLYHEDODQFLQJZRUNDQGSHUVRQDOOLIHLVDQHFHVVLW\,WèVDERXWUHFRJQL]LQJWKHLPSRUWDQFHRIVHOIFDUHUHODWLRQVKLSVDQGFRPPXQLW\HQJDJHPHQWHQVXULQJDIXOOOLQJOLIHDPLGVWWKHGHPDQGVRIWKH,7ZRUOG7HDPZRUNDQG&ROOHFWLYH(IIRUW,VWURQJO\EHOLHYHLQFUHDWLQJDZRUOGZRUWKOLYLQJLQë,UPDDVVHUWVHPSKDVL]LQJWKHQRQQHJRWLDEOHLPSRUWDQFHRISHUVRQDOGDWDSULYDF\DQGEXVLQHVVFRQWLQXLW\,QKHUYLHZHYHU\FROODERUDWRUKROGVWKHSRZHUWRHQKDQFHF\EHUVHFXULW\V\VWHPV7RDFKLHYHWKLVVKHHPSKDVL]HVDFRPSUHKHQVLYHDSSURDFKZLWKLQRUJDQL]DWLRQV)LUVWO\ZHQHHGDFRUSRUDWHF\EHUVHFXULW\VWUDWHJ\ë,UPDSRLQWVRXWKLJKOLJKWLQJWKHLPSRUWDQFHRIDWRSGRZQDSSURDFKê,QYROYHPHQWVKRXOGH[WHQGEH\RQG,7WRHYHU\EXVLQHVVOHDGHU2ZQHUVKLSLVNH\WRPLWLJDWLQJWHFKQRORJ\ULVNVë&UXFLDOO\,UPDVWUHVVHVWKHVLJQLFDQFHRIHQGXVHUHGXFDWLRQê&RQWLQXRXVWUDLQLQJIRUDOOXVHUVLVHVVHQWLDO:LWKRXWXQGHUVWDQGLQJWKHLPSRUWDQFHRIVHFXULW\LQRXUGD\WRGD\OLYHVWKHVWUDWHJLHVZHLPSOHPHQWZLOOKDYHOLPLWHGLPSDFW,WèVDERXWHPSRZHULQJLQGLYLGXDOVWRSURWHFWLQIRUPDWLRQLQERWKWKHLUSURIHVVLRQDODQGSHUVRQDOVSKHUHVë&\EHUVHFXULW\LVDFROOHFWLYHHIIRUWLQYROYLQJVWUDWHJ\FROODERUDWLRQDQGHGXFDWLRQ%\LQWHJUDWLQJWKHVHHOHPHQWVRUJDQL]DWLRQVFDQFUHDWHDVHFXUHHQYLURQPHQWZKHUHSULYDF\DQGFRQWLQXLW\DUHYDOXHGDQGXSKHOGE\HYHU\PHPEHU'DWD*XDUGLDQVKLS8QGHUVWDQGLQJGDWDSURWHFWLRQDQGSULYDF\UHTXLUHVDGKHUHQFHWRHVVHQWLDOUXOHVDVHPSKDVL]HGE\,UPD)LUVWDQGIRUHPRVWZHPXVWJUDVSWKHH[LVWLQJUHJXODWLRQVëVKHVWDWHVUPO\XQGHUOLQLQJWKHQHFHVVLW\RIDOLJQLQJHWKLFDOFRQVLGHUDWLRQVZLWKOHJDOH[SHFWDWLRQV,UPDèVVHFRQGUXOHHPSKDVL]HVSUHFLVLRQLQGDWDFROOHFWLRQê&ROOHFWRQO\ZKDWèVQHFHVVDU\ë6KHFDXWLRQVDJDLQVWRYHU]HDORXVGDWDDFFXPXODWLRQVWUHVVLQJWKHLPSRUWDQFHRISUDFWLFDOLW\ê$YRLGXQQHFHVVDU\FRVWVDQGSURWHFWGDWDE\RQO\JDWKHULQJZKDW\RXQHHGë/DVWO\,UPDHPSKDVL]HVWKHLPSRUWDQFHRIWUDQVSDUHQF\ê'DWDRZQHUVPXVWNQRZKRZZKHUHDQGLIWKHLUGDWDZLOOEHXVHGRUVKDUHGë6KHDGYRFDWHVIRULQGLYLGXDOVèULJKWVWRNQRZOHGJHDQGGHFLVLRQPDNLQJ,UPDH[SUHVVHVVXUSULVHDWSHRSOHèVH[LELOLW\ZKHQIDFHGZLWKUHZDUGVIRUWKHLUSHUVRQDOLQIRUPDWLRQ+HULQVLJKWVLOOXPLQDWHDFULWLFDODVSHFWRIGDWDHWKLFVæEDODQFLQJWKHDOOXUHRIUHZDUGVZLWKWKHLPSHUDWLYHRISURWHFWLQJSHUVRQDOSULYDF\DFKDOOHQJHWKDWUHTXLUHVYLJLODQFHDQGUHVSHFWIRULQGLYLGXDOULJKWV'HFU\SWLQJ7RPRUURZ6WD\LQJXSWRGDWHLQF\EHUVHFXULW\LVHVVHQWLDOë,UPDDVVHUWVRIIHULQJYDOXDEOHLQVLJKWVRQKRZWRQDYLJDWHWKHHYHUFKDQJLQJODQGVFDSH'HGLFDWHG0RQLWRULQJ6SHFLDOL]HGDUHDVGHGLFDWHGWRPRQLWRULQJLQWHUQDOWKUHDWVDUHFUXFLDOë,UPDHPSKDVL]HV+DYLQJDWHDPIRFXVHGRQLQKRXVH ,UPDèVH[SHULHQFHXQGHUOLQHVWKHVLJQLFDQFHRIDGDSWDELOLW\H[SHUWLVHDQGFROODERUDWLRQLQRYHUFRPLQJFKDOOHQJHVRIIHULQJDYDOXDEOHURDGPDSIRUDQ\RQHQDYLJDWLQJWKHLQWULFDWHODQGVFDSHRIF\EHUVHFXULW\LPSOHPHQWDWLRQV4XDOLW\2YHU4XDQWLW\,WèVQRWDERXWWKHTXDQWLW\RIWLPHEXWWKHTXDOLW\ë,UPDHPSKDVL]HVHFKRLQJDWLPHOHVVWUXWK,QWKH,7ZRUOGLUUHJXODUKRXUVODWHQLJKWVDQGZHHNHQGVDUHWKHQRUP7RQDYLJDWHWKLVKDYLQJDVXSSRUWLYHSHUVRQWRFRQGHLQLVLQYDOXDEOHê+DYLQJVRPHRQHZKROLVWHQVDQGXQGHUVWDQGVOLIHèVFKDOOHQJHVLVHVVHQWLDOë,UPDDGYLVHV+DYLQJDSHUVRQDOSDVVLRQZKHWKHULWèVVSRUWV\RJDRUFRRNLQJSURYLGHVDPXFKQHHGHGRXWOHW,UPDDGYRFDWHVIRUSURDFWLYHSODQQLQJê6FKHGXOHWLPHIRU\RXUVHOIVHWERXQGDULHV3ODQVSHFLFPRPHQWVOLNHORQJOXQFKHVRUOHDYLQJHDUO\WZLFHDZHHN0DNHWKHVHPRPHQWVQRQQHJRWLDEOHë,UPDLVUHVROXWHDERXWYDFDWLRQVê7KH\èUHQRQQHJRWLDEOHëVKHDVVHUWV(YHQLQWKHGHPDQGLQJ,7ODQGVFDSHWDNLQJEUHDNVLVYLWDO7UHDWYDFDWLRQVDVHVVHQWLDOë,UPDLQVLVWV:KHWKHULWèVDVHUHQHEHDFKRUH[SORULQJDQHZFLW\WDNLQJWLPHRIILVDVFUXFLDODVDQ\ZRUNFRPPLWPHQW,Q,UPDèVSHUVSHFWLYHEDODQFLQJZRUNDQGSHUVRQDOOLIHLVDQHFHVVLW\,WèVDERXWUHFRJQL]LQJWKHLPSRUWDQFHRIVHOIFDUHUHODWLRQVKLSVDQGFRPPXQLW\HQJDJHPHQWHQVXULQJDIXOOOLQJOLIHDPLGVWWKHGHPDQGVRIWKH,7ZRUOG7HDPZRUNDQG&ROOHFWLYH(IIRUW,VWURQJO\EHOLHYHLQFUHDWLQJDZRUOGZRUWKOLYLQJLQë,UPDDVVHUWVHPSKDVL]LQJWKHQRQQHJRWLDEOHLPSRUWDQFHRISHUVRQDOGDWDSULYDF\DQGEXVLQHVVFRQWLQXLW\,QKHUYLHZHYHU\FROODERUDWRUKROGVWKHSRZHUWRHQKDQFHF\EHUVHFXULW\V\VWHPV7RDFKLHYHWKLVVKHHPSKDVL]HVDFRPSUHKHQVLYHDSSURDFKZLWKLQRUJDQL]DWLRQV)LUVWO\ZHQHHGDFRUSRUDWHF\EHUVHFXULW\VWUDWHJ\ë,UPDSRLQWVRXWKLJKOLJKWLQJWKHLPSRUWDQFHRIDWRSGRZQDSSURDFKê,QYROYHPHQWVKRXOGH[WHQGEH\RQG,7WRHYHU\EXVLQHVVOHDGHU2ZQHUVKLSLVNH\WRPLWLJDWLQJWHFKQRORJ\ULVNVë&UXFLDOO\,UPDVWUHVVHVWKHVLJQLFDQFHRIHQGXVHUHGXFDWLRQê&RQWLQXRXVWUDLQLQJIRUDOOXVHUVLVHVVHQWLDO:LWKRXWXQGHUVWDQGLQJWKHLPSRUWDQFHRIVHFXULW\LQRXUGD\WRGD\OLYHVWKHVWUDWHJLHVZHLPSOHPHQWZLOOKDYHOLPLWHGLPSDFW,WèVDERXWHPSRZHULQJLQGLYLGXDOVWRSURWHFWLQIRUPDWLRQLQERWKWKHLUSURIHVVLRQDODQGSHUVRQDOVSKHUHVë&\EHUVHFXULW\LVDFROOHFWLYHHIIRUWLQYROYLQJVWUDWHJ\FROODERUDWLRQDQGHGXFDWLRQ%\LQWHJUDWLQJWKHVHHOHPHQWVRUJDQL]DWLRQVFDQFUHDWHDVHFXUHHQYLURQPHQWZKHUHSULYDF\DQGFRQWLQXLW\DUHYDOXHGDQGXSKHOGE\HYHU\PHPEHU'DWD*XDUGLDQVKLS8QGHUVWDQGLQJGDWDSURWHFWLRQDQGSULYDF\UHTXLUHVDGKHUHQFHWRHVVHQWLDOUXOHVDVHPSKDVL]HGE\,UPD)LUVWDQGIRUHPRVWZHPXVWJUDVSWKHH[LVWLQJUHJXODWLRQVëVKHVWDWHVUPO\XQGHUOLQLQJWKHQHFHVVLW\RIDOLJQLQJHWKLFDOFRQVLGHUDWLRQVZLWKOHJDOH[SHFWDWLRQV,UPDèVVHFRQGUXOHHPSKDVL]HVSUHFLVLRQLQGDWDFROOHFWLRQê&ROOHFWRQO\ZKDWèVQHFHVVDU\ë6KHFDXWLRQVDJDLQVWRYHU]HDORXVGDWDDFFXPXODWLRQVWUHVVLQJWKHLPSRUWDQFHRISUDFWLFDOLW\ê$YRLGXQQHFHVVDU\FRVWVDQGSURWHFWGDWDE\RQO\JDWKHULQJZKDW\RXQHHGë/DVWO\,UPDHPSKDVL]HVWKHLPSRUWDQFHRIWUDQVSDUHQF\ê'DWDRZQHUVPXVWNQRZKRZZKHUHDQGLIWKHLUGDWDZLOOEHXVHGRUVKDUHGë6KHDGYRFDWHVIRULQGLYLGXDOVèULJKWVWRNQRZOHGJHDQGGHFLVLRQPDNLQJ,UPDH[SUHVVHVVXUSULVHDWSHRSOHèVH[LELOLW\ZKHQIDFHGZLWKUHZDUGVIRUWKHLUSHUVRQDOLQIRUPDWLRQ+HULQVLJKWVLOOXPLQDWHDFULWLFDODVSHFWRIGDWDHWKLFVæEDODQFLQJWKHDOOXUHRIUHZDUGVZLWKWKHLPSHUDWLYHRISURWHFWLQJSHUVRQDOSULYDF\DFKDOOHQJHWKDWUHTXLUHVYLJLODQFHDQGUHVSHFWIRULQGLYLGXDOULJKWV'HFU\SWLQJ7RPRUURZ6WD\LQJXSWRGDWHLQF\EHUVHFXULW\LVHVVHQWLDOë,UPDDVVHUWVRIIHULQJYDOXDEOHLQVLJKWVRQKRZWRQDYLJDWHWKHHYHUFKDQJLQJODQGVFDSH'HGLFDWHG0RQLWRULQJ6SHFLDOL]HGDUHDVGHGLFDWHGWRPRQLWRULQJLQWHUQDOWKUHDWVDUHFUXFLDOë,UPDHPSKDVL]HV+DYLQJDWHDPIRFXVHGRQLQKRXVH V\VWHPVNHHSVDYLJLODQWH\HRQSRWHQWLDOULVNV([WHUQDO,QYHVWLJDWLRQV,UPDUHFRPPHQGVVWD\LQJFRQQHFWHGZLWKH[WHUQDOH[SHUWLVHê(QUROOLQXSGDWHVIURPFRPSDQLHVFRQGXFWLQJVSHFLDOF\EHUVHFXULW\LQYHVWLJDWLRQVëVKHDGYLVHV7KHVHLQVLJKWVIURPH[SHUWVLQWKHHOGRIIHUYDOXDEOHSHUVSHFWLYHV5HDGLQJ0DJD]LQHVDQG3XEOLFDWLRQV0DJD]LQHVDQGSXEOLFDWLRQVDUHJROGPLQHVRIWUHQGVDQGWKUHDWVë,UPDQRWHV5HJXODUO\UHDGLQJLQGXVWU\SXEOLFDWLRQVNHHSVSURIHVVLRQDOVLQIRUPHGDERXWWKHODWHVWGHYHORSPHQWVLQWKHF\EHUVHFXULW\UHDOP9HQGRU%XOOHWLQVDQG6HPLQDUV9HQGRUEXOOHWLQVDQGVHPLQDUVDUHLQYDOXDEOHUHVRXUFHVë,UPDVWDWHV.HHSLQJDQH\HRQXSGDWHVIURPYHQGRUVDQGDWWHQGLQJVHPLQDUVSURYLGHVUVWKDQGNQRZOHGJHRIQHZWRROVDQGWHFKQLTXHV)RUPDO7UDLQLQJ/DVWO\,UPDHPSKDVL]HVIRUPDOWUDLQLQJê&RQWLQXRXVOHDUQLQJWKURXJKIRUPDOWUDLQLQJSURJUDPVLVNH\ëVKHVWUHVVHV,QYHVWLQJLQVWUXFWXUHGHGXFDWLRQDOSURJUDPVHQVXUHVDGHHSXQGHUVWDQGLQJRIHYROYLQJF\EHUVHFXULW\SUDFWLFHV,UPDèVDGYLFHIRUPVDFRPSUHKHQVLYHVWUDWHJ\IRUSURIHVVLRQDOVWRVWD\FXUUHQWFRPELQLQJLQWHUQDOYLJLODQFHH[WHUQDOLQVLJKWVLQGXVWU\SXEOLFDWLRQVYHQGRUXSGDWHVVHPLQDUVDQGIRUPDOHGXFDWLRQ%\HPEUDFLQJWKHVHUHVRXUFHVLQGLYLGXDOVFDQQDYLJDWHWKHG\QDPLFF\EHUVHFXULW\ODQGVFDSHHIIHFWLYHO\&ROOHFWLYH.QRZOHGJH&RQWLQXRXVOHDUQLQJLVLQWHJUDOWRDQ\VXFFHVVIXOMRXUQH\HVSHFLDOO\LQF\EHUVHFXULW\ë,UPDHPSKDVL]HVKLJKOLJKWLQJWKHHVVHQWLDOFRQQHFWLRQEHWZHHQWHFKQRORJ\DQGHYROYLQJWKUHDWV)URPKHUPHQWRULQJSHUVSHFWLYHVKHDGYRFDWHVDFWLYHSDUWLFLSDWLRQLQF\EHUVHFXULW\IRUXPVZLWKRIFHUVDQGH[SHUWVê(QJDJLQJLQGLVFXVVLRQVEHLWZLWKLQ-7,RUEURDGHULQGXVWU\SODWIRUPVHQKDQFHVQRWMXVWP\XQGHUVWDQGLQJEXWDOVRHTXLSVPHWRWDFNOHHPHUJLQJWKUHDWVHIIHFWLYHO\ëVKHVWDWHV,UPDKLJKOLJKWVWKHSRZHURIFROOHFWLYHNQRZOHGJHDVWKHXOWLPDWHGHIHQVHDJDLQVWHVFDODWLQJWKUHDWVIDFHGE\FRPSDQLHV%\DFWLYHO\SDUWLFLSDWLQJLQWKHVHIRUXPVSURIHVVLRQDOVFDQEROVWHUWKHLUH[SHUWLVHFRQWULEXWLQJWRDVWURQJHUPRUHUHVLOLHQWF\EHUVHFXULW\ODQGVFDSH7KH5LSSOH(IIHFW,DVSLUHWRJXLGHQHZJHQHUDWLRQVLQWRWKHZRQGHUIXOZRUOGRIULVNPDQDJHPHQWDQGF\EHUVHFXULW\ë,UPDVWDWHVSDVVLRQDWHO\)RUKHUXQGHUVWDQGLQJWKUHDWVDQGPLQLPL]LQJULVNVWKURXJKF\EHUVHFXULW\LVQRWMXVWDMREEXWDOLIHORQJGHGLFDWLRQ6KHDGGVê&ROODERUDWLQJZLWKSHRSOHWRHQKDQFHSURGXFWLYLW\DQGHQVXUHFRQWLQXLW\FDQOHDGWRKDSSLHUXVHUVë,UPDèVYLVLRQUHVRQDWHVZLWKWKHHVVHQFHRIPHQWRUVKLSDQGWHDPZRUN%\VKDULQJKHUH[SHUWLVHDQGIRVWHULQJDFXOWXUHRIF\EHUVHFXULW\DZDUHQHVVVKHFRQWULEXWHVQRWRQO\WRWKHSURIHVVLRQDOJURZWKRIRWKHUVEXWDOVRWRWKHRYHUDOOVDWLVIDFWLRQDQGVHFXULW\RIWKHXVHUV+HUGHGLFDWLRQVKRZFDVHVWKHWUDQVIRUPDWLYHLPSDFWRIPHQWRUVKLSUHPLQGLQJUHDGHUVRIWKHSRVLWLYHULSSOHHIIHFWVWKDWNQRZOHGJHVKDULQJDQGFROODERUDWLRQFDQEULQJWRWKHZRUOGRIF\EHUVHFXULW\(PSRZHULQJ6LVWHUKRRG&\EHUVHFXULW\GRHVQèWGLVFULPLQDWHEDVHGRQJHQGHUë,UPDDVVHUWVHPSKDVL]LQJWKDWWKHHOGGRHVQèWWDUJHWZRPHQRUPHQGLIIHUHQWO\HWVKHDFNQRZOHGJHVWKHJHQGHUGLVSDULW\LQF\EHUVHFXULW\H[SHUWLVHZLWKVWXGLHVVKRZLQJWKDWWKHUHDUHêRQO\ZRPHQIRUHYHU\PHQLQWKHHOGë7R,UPDWKHZRUOGRIVHFXULW\LVFDSWLYDWLQJLQVWLOOLQJFRQGHQFHDQGSURYLGLQJVWDELOLW\6KHEHOLHYHVLQVKDULQJWKLVPHVVDJHZLWKRWKHUZRPHQLQ,7HQFRXUDJLQJWKHLULQWHUHVWLQWKHHOG,UPDDSSUHFLDWHVFRPSDQLHVOLNH-7,UHFRJQL]HGDVJUHDWZRUNSODFHVIRUZRPHQIRUQDUURZLQJWKHF\EHUVHFXULW\HPSOR\PHQWJDS6KHVWUHVVHVWKHLPSRUWDQFHRIDGGUHVVLQJVDODU\DQGRSSRUWXQLW\GLVSDULWLHVIRUZRPHQPDNLQJWKHHOGPRUHDFFHVVLEOH,UPDKLJKOLJKWVWKHHIIHFWLYHQHVVRIFRPPXQLFDWLRQDQGZHELQDUVLQHQJDJLQJ,7ZRPHQê7KURXJKZHELQDUVRQLQIRUPDWLRQVHFXULW\DQGF\EHUWKUHDWVëVKHQRWHVêZHFDQVXFFHVVIXOO\EULQJPRUHZRPHQLQWRWKHZRUOGRIF\EHUVHFXULW\PDNLQJRXUGLJLWDOVSDFHVVDIHUDQGPRUHLQFOXVLYHIRUHYHU\RQHë,Q,UPDèVH\HVF\EHUVHFXULW\LVDSDWKZD\WRHPSRZHUPHQWDQGDQHVVHQWLDOHIIRUWWKDWHYHU\RQHUHJDUGOHVVRIJHQGHUVKRXOGDFWLYHO\SDUWLFLSDWHLQ7KH3HUIHFW$QVZHU&\EHUVHFXULW\QHVWOHGLQWKHUHDOPVRI'LJLWDODQG,QIRUPDWLRQ7HFKQRORJ\RIIHUVDWKULOOLQJFKDOOHQJHë,UPDDVVHUWVKLJKOLJKWLQJWKHXQLTXHRSSRUWXQLWLHVIRUZRPHQLQWKHHOG6KHHPSKDVL]HVWKHLPSRUWDQFHRIDQDO\WLFDOVNLOOVDQGWKHGLYHUVHOHDUQLQJH[SHULHQFHVWKDWFRPHZLWKF\EHUVHFXULW\ê,WèVDERXWPDNLQJWHFKQRORJ\ZRUNVHDPOHVVO\IRUEXVLQHVVHVWUDQVIRUPLQJRUJDQL]DWLRQVSUDFWLFDOO\DQGHIIHFWLYHO\ëVKHH[SODLQV,UPDSDVVLRQDWHO\DGYRFDWHVIRUWKHLQWHJUDWLRQRI$UWLFLDO,QWHOOLJHQFH $, LQF\EHUVHFXULW\ê$,FRXOGUHYROXWLRQL]HWKUHDWGHWHFWLRQPDNLQJLWIDVWHUDQGPRUHSUHFLVHë+HULQVLJKWHPSKDVL]HVWKHHYROYLQJODQGVFDSHRIWHFKQRORJ\DQGLWVSRWHQWLDOIRUVDIHJXDUGLQJGLJLWDOVSDFHV7RWKH\RXQJHUJHQHUDWLRQDVSLULQJWRPDNHDGLIIHUHQFH,UPDRIIHUVDFOHDUSDWKê)RUWKRVHDLPLQJWROHDYHDPDUNF\EHUVHFXULW\LVWKHSHUIHFWDQVZHUë+HUZRUGVUHVRQDWHZLWKWKHH[FLWHPHQWDQGFKDOOHQJHVRIWKLVG\QDPLFHOGLQYLWLQJLQGLYLGXDOVWRH[SORUHWKHIDVFLQDWLQJLQWHUVHFWLRQRIWHFKQRORJ\EXVLQHVVDQGVHFXULW\7KH9RLFH&\EHUVHFXULW\QHHGVDYRLFHMXVWOLNHZRPHQGRë,UPDDVVHUWVGUDZLQJDSRZHUIXOSDUDOOHO$VD&KLHI,QIRUPDWLRQ6HFXULW\2IFHU &,62 KHUPLVVLRQDOLJQVZLWKFUHDWLQJDVDIHUGLJLWDOZRUOGê,DLPWRFRQYLQFH,7SURIHVVLRQDOVHVSHFLDOO\ZRPHQWRGHGLFDWHWKHPVHOYHVWRWKLVYLWDOFDXVHëVKHHPSKDVL]HV'HVSLWHLWVLQWLPLGDWLQJDXUDF\EHUVHFXULW\LVLQVWUXPHQWDOLQSURYLGLQJVROXWLRQVWKDWPLWLJDWHULVNVDQGHQVXUHVHFXUHWHFKQRORJ\DQGGDWD,UPDèVZRUGVHFKRDFDOOIRULQFOXVLYLW\DQGHQJDJHPHQWHQFRXUDJLQJLQGLYLGXDOVUHJDUGOHVVRIJHQGHUWRHPEUDFHWKHFKDOOHQJHDQGFRQWULEXWHWRDVDIHUDQGPRUHVHFXUHGLJLWDOODQGVFDSH ,DLPWRFRQYLQFH,7SURIHVVLRQDOVHVSHFLDOO\ZRPHQWRGHGLFDWHWKHPVHOYHVWRWKLVYLWDOFDXVH V\VWHPVNHHSVDYLJLODQWH\HRQSRWHQWLDOULVNV([WHUQDO,QYHVWLJDWLRQV,UPDUHFRPPHQGVVWD\LQJFRQQHFWHGZLWKH[WHUQDOH[SHUWLVHê(QUROOLQXSGDWHVIURPFRPSDQLHVFRQGXFWLQJVSHFLDOF\EHUVHFXULW\LQYHVWLJDWLRQVëVKHDGYLVHV7KHVHLQVLJKWVIURPH[SHUWVLQWKHHOGRIIHUYDOXDEOHSHUVSHFWLYHV5HDGLQJ0DJD]LQHVDQG3XEOLFDWLRQV0DJD]LQHVDQGSXEOLFDWLRQVDUHJROGPLQHVRIWUHQGVDQGWKUHDWVë,UPDQRWHV5HJXODUO\UHDGLQJLQGXVWU\SXEOLFDWLRQVNHHSVSURIHVVLRQDOVLQIRUPHGDERXWWKHODWHVWGHYHORSPHQWVLQWKHF\EHUVHFXULW\UHDOP9HQGRU%XOOHWLQVDQG6HPLQDUV9HQGRUEXOOHWLQVDQGVHPLQDUVDUHLQYDOXDEOHUHVRXUFHVë,UPDVWDWHV.HHSLQJDQH\HRQXSGDWHVIURPYHQGRUVDQGDWWHQGLQJVHPLQDUVSURYLGHVUVWKDQGNQRZOHGJHRIQHZWRROVDQGWHFKQLTXHV)RUPDO7UDLQLQJ/DVWO\,UPDHPSKDVL]HVIRUPDOWUDLQLQJê&RQWLQXRXVOHDUQLQJWKURXJKIRUPDOWUDLQLQJSURJUDPVLVNH\ëVKHVWUHVVHV,QYHVWLQJLQVWUXFWXUHGHGXFDWLRQDOSURJUDPVHQVXUHVDGHHSXQGHUVWDQGLQJRIHYROYLQJF\EHUVHFXULW\SUDFWLFHV,UPDèVDGYLFHIRUPVDFRPSUHKHQVLYHVWUDWHJ\IRUSURIHVVLRQDOVWRVWD\FXUUHQWFRPELQLQJLQWHUQDOYLJLODQFHH[WHUQDOLQVLJKWVLQGXVWU\SXEOLFDWLRQVYHQGRUXSGDWHVVHPLQDUVDQGIRUPDOHGXFDWLRQ%\HPEUDFLQJWKHVHUHVRXUFHVLQGLYLGXDOVFDQQDYLJDWHWKHG\QDPLFF\EHUVHFXULW\ODQGVFDSHHIIHFWLYHO\&ROOHFWLYH.QRZOHGJH&RQWLQXRXVOHDUQLQJLVLQWHJUDOWRDQ\VXFFHVVIXOMRXUQH\HVSHFLDOO\LQF\EHUVHFXULW\ë,UPDHPSKDVL]HVKLJKOLJKWLQJWKHHVVHQWLDOFRQQHFWLRQEHWZHHQWHFKQRORJ\DQGHYROYLQJWKUHDWV)URPKHUPHQWRULQJSHUVSHFWLYHVKHDGYRFDWHVDFWLYHSDUWLFLSDWLRQLQF\EHUVHFXULW\IRUXPVZLWKRIFHUVDQGH[SHUWVê(QJDJLQJLQGLVFXVVLRQVEHLWZLWKLQ-7,RUEURDGHULQGXVWU\SODWIRUPVHQKDQFHVQRWMXVWP\XQGHUVWDQGLQJEXWDOVRHTXLSVPHWRWDFNOHHPHUJLQJWKUHDWVHIIHFWLYHO\ëVKHVWDWHV,UPDKLJKOLJKWVWKHSRZHURIFROOHFWLYHNQRZOHGJHDVWKHXOWLPDWHGHIHQVHDJDLQVWHVFDODWLQJWKUHDWVIDFHGE\FRPSDQLHV%\DFWLYHO\SDUWLFLSDWLQJLQWKHVHIRUXPVSURIHVVLRQDOVFDQEROVWHUWKHLUH[SHUWLVHFRQWULEXWLQJWRDVWURQJHUPRUHUHVLOLHQWF\EHUVHFXULW\ODQGVFDSH7KH5LSSOH(IIHFW,DVSLUHWRJXLGHQHZJHQHUDWLRQVLQWRWKHZRQGHUIXOZRUOGRIULVNPDQDJHPHQWDQGF\EHUVHFXULW\ë,UPDVWDWHVSDVVLRQDWHO\)RUKHUXQGHUVWDQGLQJWKUHDWVDQGPLQLPL]LQJULVNVWKURXJKF\EHUVHFXULW\LVQRWMXVWDMREEXWDOLIHORQJGHGLFDWLRQ6KHDGGVê&ROODERUDWLQJZLWKSHRSOHWRHQKDQFHSURGXFWLYLW\DQGHQVXUHFRQWLQXLW\FDQOHDGWRKDSSLHUXVHUVë,UPDèVYLVLRQUHVRQDWHVZLWKWKHHVVHQFHRIPHQWRUVKLSDQGWHDPZRUN%\VKDULQJKHUH[SHUWLVHDQGIRVWHULQJDFXOWXUHRIF\EHUVHFXULW\DZDUHQHVVVKHFRQWULEXWHVQRWRQO\WRWKHSURIHVVLRQDOJURZWKRIRWKHUVEXWDOVRWRWKHRYHUDOOVDWLVIDFWLRQDQGVHFXULW\RIWKHXVHUV+HUGHGLFDWLRQVKRZFDVHVWKHWUDQVIRUPDWLYHLPSDFWRIPHQWRUVKLSUHPLQGLQJUHDGHUVRIWKHSRVLWLYHULSSOHHIIHFWVWKDWNQRZOHGJHVKDULQJDQGFROODERUDWLRQFDQEULQJWRWKHZRUOGRIF\EHUVHFXULW\(PSRZHULQJ6LVWHUKRRG&\EHUVHFXULW\GRHVQèWGLVFULPLQDWHEDVHGRQJHQGHUë,UPDDVVHUWVHPSKDVL]LQJWKDWWKHHOGGRHVQèWWDUJHWZRPHQRUPHQGLIIHUHQWO\HWVKHDFNQRZOHGJHVWKHJHQGHUGLVSDULW\LQF\EHUVHFXULW\H[SHUWLVHZLWKVWXGLHVVKRZLQJWKDWWKHUHDUHêRQO\ZRPHQIRUHYHU\PHQLQWKHHOGë7R,UPDWKHZRUOGRIVHFXULW\LVFDSWLYDWLQJLQVWLOOLQJFRQGHQFHDQGSURYLGLQJVWDELOLW\6KHEHOLHYHVLQVKDULQJWKLVPHVVDJHZLWKRWKHUZRPHQLQ,7HQFRXUDJLQJWKHLULQWHUHVWLQWKHHOG,UPDDSSUHFLDWHVFRPSDQLHVOLNH-7,UHFRJQL]HGDVJUHDWZRUNSODFHVIRUZRPHQIRUQDUURZLQJWKHF\EHUVHFXULW\HPSOR\PHQWJDS6KHVWUHVVHVWKHLPSRUWDQFHRIDGGUHVVLQJVDODU\DQGRSSRUWXQLW\GLVSDULWLHVIRUZRPHQPDNLQJWKHHOGPRUHDFFHVVLEOH,UPDKLJKOLJKWVWKHHIIHFWLYHQHVVRIFRPPXQLFDWLRQDQGZHELQDUVLQHQJDJLQJ,7ZRPHQê7KURXJKZHELQDUVRQLQIRUPDWLRQVHFXULW\DQGF\EHUWKUHDWVëVKHQRWHVêZHFDQVXFFHVVIXOO\EULQJPRUHZRPHQLQWRWKHZRUOGRIF\EHUVHFXULW\PDNLQJRXUGLJLWDOVSDFHVVDIHUDQGPRUHLQFOXVLYHIRUHYHU\RQHë,Q,UPDèVH\HVF\EHUVHFXULW\LVDSDWKZD\WRHPSRZHUPHQWDQGDQHVVHQWLDOHIIRUWWKDWHYHU\RQHUHJDUGOHVVRIJHQGHUVKRXOGDFWLYHO\SDUWLFLSDWHLQ7KH3HUIHFW$QVZHU&\EHUVHFXULW\QHVWOHGLQWKHUHDOPVRI'LJLWDODQG,QIRUPDWLRQ7HFKQRORJ\RIIHUVDWKULOOLQJFKDOOHQJHë,UPDDVVHUWVKLJKOLJKWLQJWKHXQLTXHRSSRUWXQLWLHVIRUZRPHQLQWKHHOG6KHHPSKDVL]HVWKHLPSRUWDQFHRIDQDO\WLFDOVNLOOVDQGWKHGLYHUVHOHDUQLQJH[SHULHQFHVWKDWFRPHZLWKF\EHUVHFXULW\ê,WèVDERXWPDNLQJWHFKQRORJ\ZRUNVHDPOHVVO\IRUEXVLQHVVHVWUDQVIRUPLQJRUJDQL]DWLRQVSUDFWLFDOO\DQGHIIHFWLYHO\ëVKHH[SODLQV,UPDSDVVLRQDWHO\DGYRFDWHVIRUWKHLQWHJUDWLRQRI$UWLFLDO,QWHOOLJHQFH $, LQF\EHUVHFXULW\ê$,FRXOGUHYROXWLRQL]HWKUHDWGHWHFWLRQPDNLQJLWIDVWHUDQGPRUHSUHFLVHë+HULQVLJKWHPSKDVL]HVWKHHYROYLQJODQGVFDSHRIWHFKQRORJ\DQGLWVSRWHQWLDOIRUVDIHJXDUGLQJGLJLWDOVSDFHV7RWKH\RXQJHUJHQHUDWLRQDVSLULQJWRPDNHDGLIIHUHQFH,UPDRIIHUVDFOHDUSDWKê)RUWKRVHDLPLQJWROHDYHDPDUNF\EHUVHFXULW\LVWKHSHUIHFWDQVZHUë+HUZRUGVUHVRQDWHZLWKWKHH[FLWHPHQWDQGFKDOOHQJHVRIWKLVG\QDPLFHOGLQYLWLQJLQGLYLGXDOVWRH[SORUHWKHIDVFLQDWLQJLQWHUVHFWLRQRIWHFKQRORJ\EXVLQHVVDQGVHFXULW\7KH9RLFH&\EHUVHFXULW\QHHGVDYRLFHMXVWOLNHZRPHQGRë,UPDDVVHUWVGUDZLQJDSRZHUIXOSDUDOOHO$VD&KLHI,QIRUPDWLRQ6HFXULW\2IFHU &,62 KHUPLVVLRQDOLJQVZLWKFUHDWLQJDVDIHUGLJLWDOZRUOGê,DLPWRFRQYLQFH,7SURIHVVLRQDOVHVSHFLDOO\ZRPHQWRGHGLFDWHWKHPVHOYHVWRWKLVYLWDOFDXVHëVKHHPSKDVL]HV'HVSLWHLWVLQWLPLGDWLQJDXUDF\EHUVHFXULW\LVLQVWUXPHQWDOLQSURYLGLQJVROXWLRQVWKDWPLWLJDWHULVNVDQGHQVXUHVHFXUHWHFKQRORJ\DQGGDWD,UPDèVZRUGVHFKRDFDOOIRULQFOXVLYLW\DQGHQJDJHPHQWHQFRXUDJLQJLQGLYLGXDOVUHJDUGOHVVRIJHQGHUWRHPEUDFHWKHFKDOOHQJHDQGFRQWULEXWHWRDVDIHUDQGPRUHVHFXUHGLJLWDOODQGVFDSH ,DLPWRFRQYLQFH,7SURIHVVLRQDOVHVSHFLDOO\ZRPHQWRGHGLFDWHWKHPVHOYHVWRWKLVYLWDOFDXVH 'RQÍWZRUU\DERXWIDLOXUH\RXRQO\KDYHWREHULJKWRQFH\r$" ! Ÿ¬á¾BŸŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿŸEFFSá ¥ ¶»ÂÂƸÂÈÅÆȵƶżÃǼÂÁt|“„‰ƒ€†‰Š’‰ „SÖF×BÖáŸN&Ÿ EdWddT h€djpmppln|‚|”„‰€„‰‹„‰|‰„‚„|‡Š‰’’’ ~„Š‡ŠŠ† ~Šˆ 4VCTDSJCF 4VCTDSJCF 'RQÍWZRUU\DERXWIDLOXUH\RXRQO\KDYHWREHULJKWRQFH\r$" ! Ÿ¬á¾BŸŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿFŸEFFSáF ¥ Ÿ]&NÿŸEFFSá ¥ ¶»ÂÂƸÂÈÅÆȵƶżÃǼÂÁt|“„‰ƒ€†‰Š’‰ „SÖF×BÖáŸN&Ÿ EdWddT h€djpmppln|‚|”„‰€„‰‹„‰|‰„‚„|‡Š‰’’’ ~„Š‡ŠŠ† ~Šˆ 4VCTDSJCF 4VCTDSJCF ¼á×èæçåì¼áæÜÚÛçæ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¼á×èæçåì¼áæÜÚÛçæ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n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n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n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n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ê+LVWRULF7RZQVKLSë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v]v:]vÀ]}ŒUÇŒ˜/v(}ŒuŸ}v^µŒ]šÇUWŒ]ÀÇvD]oÀ]^µŒ]šÇE}u‰µšŒ^ŒÀ]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ê+LVWRULF7RZQVKLSë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v]v:]vÀ]}ŒUÇŒ˜/v(}ŒuŸ}v^µŒ]šÇUWŒ]ÀÇvD]oÀ]^µŒ]šÇE}u‰µšŒ^ŒÀ]U/EX ZZZFLRORRNFRP_1RYHPEHU_ ZZZFLRORRNFRP_1RYHPEHU_  :KHQ,UVWVWDUWHGP\FRUSRUDWHMREDW(UQVW RXQJ,QGLD,KDGMXVWFRPSOHWHGP\EDFKHORUè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è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ê7UXVWHG3DUWQHUVKLSVëLVQRQQHJRWLDEOHZHSXWRXUFOLHQWVDWWKHFHQWUHRIRXUEXVLQHVV1RPDWWHUZKDWZHGRZHZRUNKDUGWRGHVLJQRXUVWUDWHJLHVDQGGHYHORSRXURSHUDWLRQVWKDWFDQPDNHDUHDOGLIIHUHQFHLQRXUFOLHQW8QGHQLDEO\WHFKQRORJ\LVSOD\LQJDVLJQLFDQWUROHLQDOPRVWHYHU\VHFWRU+RZDUH\RXDGYDQFLQJWRZDUGVWHFKQRORJLFDOLQQRYDWLRQVWRPDNH\RXUVROXWLRQVUHVRXUFHIXO"0DQ\WKLQJVDUHSRVVLEOHZLWKWHFKQRORJ\EXWLWGRHVQèWDOZD\VPHDQVDIH$VWKHGLJLWDOZRUOGLVPRYLQJLQWRFRPSDQLHVDQGWHFKQRORJ\EHFRPHVHVVHQWLDOIRUPHHWLQJWKHQHHGVRI\RXUFOLHQWVHPSOR\HHVYHQGRUVDQGVRFLHW\\RXUF\EHUVHFXULW\SUDFWLFHPXVWEXLOGUHVLOLHQFHDQGWUXVWZLWKLQWHJULW\(=(1PDNHVDSHUIHFWSDUWQHUIRUHVWDEOLVKPHQWVORRNLQJDWWUDQVIRUPDWLRQDO,7DQG'LJLWDOVROXWLRQVEHFDXVHRIRXUH[SHUWLVHDFURVVWKHFRQWLQXXPDQGKHDOWKFDUHLQGXVWU\LQDGGLWLRQWRMXVWDVVHVVLQJRUJDQL]DWLRQVF\EHUSUDFWLFHDQGDOLJQLQJLWWREXVLQHVVSULRULWLHVZHKHOSFUHDWLQJDF\EHUVDIHHFRV\VWHPE\ 7EARECONTINUOUSLYENCOURAGINGOURPROFESSIONALSTOWARDSTHEDIRECTIONOF#ROSS\rLEARNINGAND)NNOVATIONTOBEABLETOKEEPUPWITHTHEEVER\rINCREASINGCOMPETITION ZZZFLRORRNFRP_1RYHPEHU_ ZZZFLRORRNFRP_1RYHPEHU_ :KHQ,UVWVWDUWHGP\FRUSRUDWHMREDW(UQVW RXQJ,QGLD,KDGMXVWFRPSOHWHGP\EDFKHORUèVGHJUHHLQ&RPSXWHU(QJLQHHULQJIURP0XPEDL8QLYHUVLW\DQGOLNHPRVWRWKHUV,ZDVXQFHUWDLQDQGDJLWDWHGDERXWZKDWP\FDUHHURUIXWXUHZRXOGKDYHIRUPH:LWKRXWKLQWLQJRIDQ\,ZDVVRRQWUDQVIHUUHGIURPD0RELOH$SSOLFDWLRQGHYHORSHUWRD&\EHUVHFXULW\$QDO\VWDQGDOORWWHGWRDFOLHQWZLWKWKHH[SHFWDWLRQRIGHYHORSLQJDF\EHUVHFXULW\IUDPHZRUNIRUWKHP:LWKDIHDURIEHLQJDFRPSOHWHQHZELHWRWKLVZRUOGDQGH[FLWHPHQWRIZRUNLQJRQVRPHWKLQJQHZ,VWDUWHGUHDGLQJWDNLQJRQOLQHFRXUVHVH[SORULQJSXEOLFIRUXPVWREXLOGP\UHODWLRQZLWKLQGXVWU\H[SHUWVDQGGHYHORSLQJDGHHSNQRZOHGJHEDVH:KLOHZRUNLQJRQWKHSURMHFWVDQGFOLHQWV,ZDVLQWURGXFHGWRYDULRXVH[SHULHQFHGOHDGHUVDQGF\EHUSURIHVVLRQDOVZKRZHUHVSHFLDOLVWVLQWKHHOGRIF\EHU7KH\PHQWRUHGJXLGHGDQGWUXVWHGPHZLWKIDQWDVWLFRSSRUWXQLWLHVZKLFKDOORZHGPHWRRXULVKDQGWKULYHSHUVRQDOO\DQGSURIHVVLRQDOO\6RRQ,ZDVDEOHWRKHOSP\FOLHQWVDQGWKHLURUJDQL]DWLRQDVD6XEMHFW0DWWHU([SHUW 60( IRU&\EHU6WUDWHJ\DQG5LVN0DQDJHPHQWSUDFWLFH,DOVRKDGWKHRSSRUWXQLW\WRZRUNZLWKF\EHUSURIHVVLRQDOVDW.30*,QGLDZKLFKKHOSHGPHSROLVKP\WHFKQLFDOVNLOOVDQGJDYHPHDGHHSHUXQGHUVWDQGLQJRIWKHODWHVWF\EHUDWWDFNVWKUHDWVDQGYXOQHUDELOLWLHVHYROYLQJDQGWKHWHFKQLTXHVRIGHYHORSLQJGHIHQVHPLWLJDWLRQPHWKRGRORJLHVWRSURWHFWRUJDQL]DWLRQV:KLOHWKLVZDVYHU\SURPLVLQJDQG,ZDVRQP\WUDFN,VDZWKHRSSRUWXQLW\WRPRYHXSDQGWDNHRQWKHUHVSRQVLELOLWLHVRIVHWWLQJXSDF\EHUVHFXULW\IXQFWLRQ,WUDQVLWLRQHGP\UROHIURPEHLQJDVHQLRUFRQVXOWDQWWROHDGLQJDF\EHUDQGSURGXFWVHFXULW\SUDFWLFHZLWK(=(1&RPSXWHU6HUYLFHV,1&86$:LWKWKHGHVLUHRIFRQWLQXRXVOHDUQLQJDQGPRWLYDWLRQWRNHHSLQJHYHU\RUJDQL]DWLRQF\EHUVDIHZHDW(=(1KHOSRXUFOLHQWVLQWKHKHDOWKFDUHLQGXVWU\FUHDWHDF\EHUVDIHHFRV\VWHP:HRIIHUYDULRXVVHFXULW\RSHUDWLRQVGHWHFWLRQDQGUHVSRQVHVHUYLFHVORRNLQJDWERWKWUDQVDFWLRQDODQGWUDQVIRUPDWLRQDO,7DQG'LJLWDO6ROXWLRQV(QOLJKWHQXVRQKRZ\RXKDYHLPSDFWHGWKHLQGXVWU\WKURXJK\RXUH[SHUWLVHLQWKHPDUNHW:HQHHGWRXQGHUVWDQGWKDWF\EHUVHFXULW\LVQRWMXVWDWHFKQLFDOHIIRUW,WFRPSULVHVPDQDJHPHQWFRPPLWPHQWJRYHUQDQFHVWUDWHJ\ULVNPDQDJHPHQWFRPSOLDQFHLVVXHVUHVLOLHQFHDQGDZDUHQHVV:KHQZHWDONDERXWF\EHUVHFXULW\LWLVQHFHVVDU\WRNQRZWKHZD\VLQZKLFKZHFDQLGHQWLI\RXURUJDQL]DWLRQVè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ê7UXVWHG3DUWQHUVKLSVëLVQRQQHJRWLDEOHZHSXWRXUFOLHQWVDWWKHFHQWUHRIRXUEXVLQHVV1RPDWWHUZKDWZHGRZHZRUNKDUGWRGHVLJQRXUVWUDWHJLHVDQGGHYHORSRXURSHUDWLRQVWKDWFDQPDNHDUHDOGLIIHUHQFHLQRXUFOLHQW8QGHQLDEO\WHFKQRORJ\LVSOD\LQJDVLJQLFDQWUROHLQDOPRVWHYHU\VHFWRU+RZDUH\RXDGYDQFLQJWRZDUGVWHFKQRORJLFDOLQQRYDWLRQVWRPDNH\RXUVROXWLRQVUHVRXUFHIXO"0DQ\WKLQJVDUHSRVVLEOHZLWKWHFKQRORJ\EXWLWGRHVQè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rLEARNINGAND)NNOVATIONTOBEABLETOKEEPUPWITHTHEEVER\r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è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èVH[SHFWDWLRQVLVYHU\HVVHQWLDO(YHU\VXFFHVVIXOEXVLQHVVLVGHQHGE\WKHLQWHJULW\DQGKRQHVW\RILWVOHDGHURUJDQL]DWLRQVSXWWLQJWUXVWLQ\RXDQG\RXUVHUYLFHVGHSHQGVRQLW2IFRXUVHDWWKHHQGRIWKHGD\LWLVHVVHQWLDOWRNHHSJURZLQJDQGOHDUQLQJWRVXVWDLQLQDZRUOGZKHUHHYHU\GD\LVDQHZFKDOOHQJHDQGDQHZF\EHUDWWDFNWRRYHUFRPH0\DGYLFHWRWKHRQHVZKRDVSLUHWRYHQWXUHLQWRF\EHUVHFXULW\LVWROHDUQDERXWRIWKHODWHVWVHFXULW\DWWDFNVDQGGHIHQFHWHFKQLFV([SORUHDQGJDLQKDQGVRQH[SHULHQFHXQGHUWKHJXLGDQFHRILQGXVWU\H[SHUWV ZZZFLRORRNFRP_1RYHPEHU_ GHYHORSLQJDGYDQFHGPHWKRGRORJLHVLPSOHPHQWLQJGLJLWDOO\DGYDQFHGFXVWRPL]HGVROXWLRQVDQGRQJRLQJVHFXULW\PRQLWRULQJWKHHQYLURQPHQWZLWKDXWRPDWHGUHVSRQVHWRGHWHFWHGF\EHULQFLGHQWV:KDWDFFRUGLQJWR\RXFRXOGEHWKHQH[WVLJQLFDQWFKDQJHLQ\RXUVHFWRU"+RZLV\RXUFRPSDQ\SUHSDULQJWREHDSDUWRIWKDWFKDQJH"&\EHUDWWDFNVDUHLQFUHDVLQJJOREDOO\DWDUDSLGVSHHG&XUUHQWO\WKHLQGXVWU\LVGULYHQE\WKHLQYHQWLRQRIGLVUXSWLYHWHFKQRORJ\OLNH,R7$,TXDQWXPFRPSXWLQJFRPSOH[VXSSO\FKDLQVUDQVRPZDUHKDFNWLYLVPDQGWUDGHZDUV6XFKWKUHDWSUROHVGHPDQGDG\QDPLFDSSURDFKWRF\EHUVHFXULW\7RPDQDJHWKLVGHVWUXFWLYHJURZWKLQWKHPDUNHWSODFHLWLVQHFHVVDU\WRKDYHDWUDQVIRUPDWLRQDOFKDQJHZLWKLQQRYDWLRQDQGVSHHG7KLVWDVNKDVQHYHUEHHQPRUHFRPSOH[EXWZHVWULYHWRKDYHDQHIIHFWLYHVHFXULW\RSHUDWLRQVFHQWUHZLWKWKHULJKWVWUXFWXUHHPHUJLQJWHFKQRORJLHVGHHSH[SHUWLVHH[WHQVLYHNQRZOHGJHEDVHDQGFRUUHFWJRYHUQDQFHLQSODFH7KLVZLOOKHOSXVDQGRXUFOLHQWVPDNHPRUHLQIRUPHGGHFLVLRQVDQGSURYLGHHQGWRHQGVLWXDWLRQDODZDUHQHVVDQGEXVLQHVVLQWHOOLJHQFHIRUPRUHHIIHFWLYHIRUHFDVWLQJDQGHQDEOLQJIXOOPHQW$OVRZLWKLQWURGXFLQJWKH]HURWUXVWSULQFLSOHGDWDFHQWULFDQGLGHQWLW\PDQDJHPHQWPHWKRGRORJLHVZHDUHLPSURYLQJRXUVHFXULW\ULVNDQGUHVLOLHQFHFDSDELOLWLHV:KHUHGR\RXHQYLVLRQ\RXUVHOIWREHLQWKHORQJUXQDQGZKDWDUH\RXUIXWXUHJRDOVIRU(=(1"$ZHOOVHFXUHGEXVLQHVVKDVWKHSRWHQWLDOWREHFRQGHQWDQGDGYDQFHG2UJDQL]DWLRQVMXVWGRQè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èVH[SHFWDWLRQVLVYHU\HVVHQWLDO(YHU\VXFFHVVIXOEXVLQHVVLVGHQHGE\WKHLQWHJULW\DQGKRQHVW\RILWVOHDGHURUJDQL]DWLRQVSXWWLQJWUXVWLQ\RXDQG\RXUVHUYLFHVGHSHQGVRQLW2IFRXUVHDWWKHHQGRIWKHGD\LWLVHVVHQWLDOWRNHHSJURZLQJDQGOHDUQLQJWRVXVWDLQLQDZRUOGZKHUHHYHU\GD\LVDQHZFKDOOHQJHDQGDQHZF\EHUDWWDFNWRRYHUFRPH0\DGYLFHWRWKHRQHVZKRDVSLUHWRYHQWXUHLQWRF\EHUVHFXULW\LVWROHDUQDERXWRIWKHODWHVWVHFXULW\DWWDFNVDQGGHIHQFHWHFKQLFV([SORUHDQGJDLQKDQGVRQH[SHULHQFHXQGHUWKHJXLGDQFHRILQGXVWU\H[SHUWV ZZZFLRORRNFRP_1RYHPEHU_ Äy«®z¶«‹³Ä ÇÛØØææØáÖØâÙ Äy«®z¶«‹³Ä &p~«®Šà ßÜØæÜáçèåáÜáÚçÛØÖâàãßØëÔá×çØÖÛáÜÖÔßÜáçâçÛØp›~"$5*0/"#-&ˆŸ«çÛØâÙÔßß¡ ÕØáØç Ÿš¨«Š›®‹y— Äy«®z¶«‹³Ä ÇÛØØææØáÖØâÙ Äy«®z¶«‹³Ä &p~«®Šà ßÜØæÜáçèåáÜáÚçÛØÖâàãßØëÔá×çØÖÛáÜÖÔßÜáçâçÛØp›~"$5*0/"#-&ˆŸ«çÛØâÙÔßß¡ ÕØáØç Ÿš¨«Š›®‹y—