Overview Presentation - Alea HoldingsAlea Holdings LLC is a veteran owned small business...

Copyright 2006 Alea Holdings llc

2225 W. Southlake Blvd.Suite 423-13

Southlake, TexasUSA

76092

[email protected]

Overview Presentation


Alea Holdings LLC is a veteran owned small business specializing in risk analysis, risk pricing and risk mitigation solutions for the global infrastructure community.

Alea Holdings provides comprehensive risk portfolio services in a unique and integrated format that can create measurable results that drive new operational and financial value through immediate cost optimization, increased risk predictability, innovative mitigation strategies and lower overall operational and insurance costs

throughout the extended enterprise

www.aleaholdings.com


Efficient Asset Management

Multinational corporations or government agency’s all have several challenges in common:• How to accurately identify risks (security, operational, catastrophe, financial) for each asset

and overall portfolio of assets:• How to allocate budget and resources effectively to improve risk profile for single assets or

portfolio of assets;• How to provide transparency of budgeting and operations (i.e.; how much money is needed?

How is that money spent? What was overall benefit of investment?);• How to raise private capital or secure budget from bonds or government agency funding;• How to manage risk data in a dynamic, real time format – where data can be shared to the

benefit of the overall organization;• How to quantify, operate, price, operate and manage new “Greenfield” projects;• How best to protect people, assets and investments.

Alea Holdings solutions help our clients address these most pressing issues in a standardized, transparent, scaleable and defensible program, removing “paper” and redundancy, managing risk points in a real time and upgradeable software tool.


Vision

Alea Holdings is Committed to the Possibilities of:

– Growing a global integrated risk consultancy firm through strategic partners, government agencies and multinational organizations;

– Integrating Intelligent Solutions that combine standardized security, engineering and country risk data tied to defensible financial output with Professional “Real World” Response Capabilities;

– Working with and through the global infrastructure community, financial organizations, multinational corporations and government agencies;

– Reaching directly to the C-level through a demonstrated and “defensible value chain”, that delivers direct and measurable stakeholder value throughout the enterprise;

– Delivering differentiated services to a growing market sector;

– Providing high quality risk data that can be used to more efficiently manage multiple projects and assets through accurately quantifying risk (security, operational, catastrophe, financial, country) in a real time and dynamic software tool – all tied to enhanced operational efficiencies and cost reduction;

– Leading an emerging risk analysis and mitigation industry through an agile approach to providing new products into multiple business sectors.


Alea Holdings market potential has multiple penetration points:

– Multinational Corporations• Global Infrastructure

– EPC Contractors – Power– Water/Wastewater– Transportation (ports, airports, rail)– Energy – Oil & gas/LNG– Chemical– TPL (Third Party Logistics)

• Insurance brokerage firms and insurance companies• Defense Contractors

– Financial community (lenders into infrastructure)– Government Agencies

Market


Operational Management

Returns

Compliance &Accountability

Budget & Resource Allocation

FacilitiesOptimization(Engineering)

Operational SecurityEnhancement

ASSESSMENT PROGRAM

Standardized & Integrated

Data

Alea Defensible Value Chain

11

22

33

44

55

66


Alea Serves Business Continuity Leaders and Stakeholders

A new category of C-level officer has been created focusing on maintaining and managing ongoing operations of corporations throughout an active disruptive event or even significant disaster. Known as the Chief Continuity Officer, the financial survivability of the enterprise is their primary responsibility.

This board level accountability now exists in over 75% of the Global 1000 corporations, including the significant majority of multi-national and cross boarder concerns.

A new generation of integrated security information solutions will need to be developed and deployed to provide a coherent platform for supporting the ongoing operations of this new business function and its leadership for the foreseeable future.

Source: CSO Magazine

Administration Risk Management

Finance Information

OperationsCommunications Continuity

governancecom

pliance

Government Regulators

Financial Markets

Serving Corporate Leaders


Known Risks

Un-Known Risks

Immediate

RisksIdentified Internal Factors Visible External Factors

Traditional Security planning and operations meets the challenges of immediate and visible risks. However, today's asymmetrical threat contains internal and external factors that in combination are more difficult to observe clearly throughout the total enterprise. To gain visibility to these more complex potential risks, the INTELOS approach uses a multi-tiered prediction, prevention and protection horizon. This intelligent early warning system leverages an integrated approach to command, control, computer and intelligence systems to direct assessment, awareness and response to multiple threat elements as they take form across the enterprise.

Seeing the Asymmetrical Threat


• Working with Alea Holdings, our global clients have seen:– Significant annual savings in the areas of total risk investments– Beneficial negotiation positions in relation to third party insurance and other risk

mitigation costs– Increased ability to effectively manage response and prevention capabilities

across an entire enterprise – More effective placement of resources and greater defensibility for security and

safety decision processes – Greater accountability and transparency of security and risk management

decisions– Enhanced collaboration between stakeholders in advancing risk management

strategies and more effective implementation of system wide response and preparedness programs.

Outcomes from Alea Services


Summary

• Alea Provides ROI and ROSI Differentiation– Translates into accelerated business returns on risk based investments (ROSI)– Annualized returns focus attention of CFO/C-Level decision makers– Enhances performance/return on existing assets supports cost basis– Deceases risk exposure and increases mitigation opportunities across enterprise– Delivers distinct competitive performance edge in new market entry and global

enterprise operations.• Market Timing and Emerging Growth

– Meets accelerating market need: Compliance, Security, Governance– Delivers a balanced “enterprise perspective” to Risk Management– Drives more “informed” corporate decision making processes on global scale


Detailed Overview Assessment Program


INTELOS –a unique assessment approach

INTELOS is a proprietary Alea Holdings software tool used to assess the overall security, engineering, operational and country risks for global infrastructure assets. The INTELOS software program combines into one standardized report:

• Security risk profile • Engineering risk profile (to include operational risks and catastrophe risks)• Country and Sovereign risk profile

INTELOS outputs are:• Standardized risk “grade” (for single asset, project or portfolio)• Recommendations to improve security and operational risks, tied to costing• Demonstrates how best to allocate budget and resources in compliant model to

improve security • Financial risk data tied to “grade” translating into strong budget analysis tool• Significant annual cost savings


Technology

• Developed• Sophisticated not easily duplicated• Scaleable• Product and service vertical depth• Multiple applications • Intellectual market leadership• Independence• Industry standardization• Enhanced data management• Agile and flexible• Key discriminator• Data management


Operating Context–Proven Methodology over 4 years of in the field success

–On Site Personnel Review Facilities Processes and Assets

–Proprietary Assessment Tools Calculate Results

–Employs a Combination of Security and Engineering Professional Inputs

–Generates Reports with Detailed ROSI Calculations and Specific Budgetary Recommendations

–Directly Applicable to Risk based costs for operations and facilities

–Low Operational Costs to Firm with High Margin Returns

–Immediate pull through for Security Equipment Services

Alea Holdings INTELOS assessment platform: Brings Science to the Art of Return on Security Investment


Operating ContextFinancial and Insurance Instruments that match to Risk.Leverage Alea Holdings operations to establish terms and conditions of Risk coverageProvide alternative vehicles for maintaining risk mitigation between underwriters, operations and corporate risk professionalsDemonstrate clear ROSI related expense savingsAccelerate returns to all participants in special purpose risk mitigation vehiclesProvide ongoing operational returns from premiums and operating efficiencies developed in collaboration with customers

Financial Framework for Returns within Alea Portfolio Services

Communities of Interest - Industries

Shared Risk/Shared ReturnsCollaborative Risk Protection Portfolio

Reinsurance Marketplace

Primary Insurance Markets Private Insurance

(Captive)

Financial Instruments and Insurance

Assessment Assurance


METHODOLOGY


Meeting the Challenge of Competing Standards

• Since 9-11, In the US the GAO has noted that over 140 different standards exist

among government and non governmental agencies for assessing the physical risks to

facilities and personnel worldwide.

• In congressional testimony in front of the US Congress, the ODNI admitted that

their was no set standard for assessing risk available to support any scientifically

valid estimate of the costs associated with increasing the security capabilities of

federal offices and buildings

• By 2005, no standard had been applied to assess risk or estimate costs for

remediation of risks presented by the DHS, yet over 10 BN has been earmarked for

improvements to security for Federal Facilities and Leased Space for FY2007


• In 2002 the Infrastructure Security Partnership was established as a public private partnership dedicated to heightening government, public and industry awareness of the risks to critical infrastructure that exist in the US.

• Similarly the CSIS, Council on Foreign Relations and the Conference

Board have all set up similar working groups.

• All of these groups agree that if US and Friendly Foreign Governments

wish to meet the challenges of the new international threat, as well as

provide for effective response to natural and man made disasters, a set of

workable standards must be established immediately

Meeting the Challenge of Competing Standards


Pe = system effectivenessPa= probability of attack (assume 1)Pi= probability of interruptionPn= probability of neutralization

Sample System Effectiveness equation.PE = PA * (PI*PN)

Vulnerability is determined by the aggregation of the variables and application to the fixed assets on an individual basis

Vulnerability= Rating

Breaking the Barriers of Traditional Assessment Methodologies


Valu

e =

Rel

ativ

e D

iffic

ulty

to O

verc

ome

Operational Cost/Time To Implement = Penetration Prevention

1

2

3

Source: US DoD

Physical Barriers –Architecture, Fencing, Lighting

Sensors and Surveillance -Video/Audio, Movement, IR, Passive and Active Sensor Platforms

Active Defensive Measures and Systems – Mines, Response Teams, Animal Controlled Areas, Lethal/Non Lethal Manned Response

Calculated ratings are applied to each level of technology or engineering solution

presented The sum of each element is then aggregated to develop a core security assessment value

Defensibility Matrix –Simplified Model



Alea INT ELOS ModelAlea INT ELOS Model

Alea Holdings provides the unique combination of standards with the addition of assessment of impact to operations that helps decision makers effectively support the programs that protect both physical and business continuity of operations regardless of the type of threat faced by the organization.

Vul

nera

bilit

y of

Tar

get

Impact t

o Operatio

ns

Assessment of Protective Value

DOE ModelDOE Model

DOD ModelDOD Model


Protective Preventive Predictive


COUNTRY/REGIONALRISK FACTORS ANALYSIS

AND RATING


Methodology for evaluating regional risk factors into assessment reporting

• Int•elos utilizes a combination of available resources in determining its regional risk assessment. These resources include a combination of reports and analysis from:– US Department of State Country Reports– Center for Strategic and International Studies Reports– OECD Economic Country Risk Index– Transparency International CPI (Corruption Perception Index)– Economist Magazine Area Intelligence Reports

• These reports and indices each receive a weighted value that is used as a set of key indicators that evaluate the level of risk to particular facilities, industries and individual investments within the context of the international community. Int•elos analysts continuously review these reports and factors to mirror the industry standards in their approach to assessing the risks of each element within the reporting output of the software tool


• Political System and Stability Index• Governmental/Institutional Spending• Global/Regional Investment Ratios• Sovereign Risk Assessment • Socio Economic Demographics• Military/Security Investment and Resources• Civilian Legal Institutional Development• Human Rights Ratings and Index Reports• Institutional Transparency and Governance• Infrastructure Investment Trends• Historical or regional conflict risk

InstitutionalRisk

Governance Security

Dev

elop

men

t Infrastructure

Finance

Critical Factors


CurrentAssessment

PotentialOptimized

Enterprise Optimization


Measurable Client Benefits

• Solution to benefit client “enterprise” with C-Level and Board recognition– Accurately quantify and identify risk, ROSI– Competitive advantage through greater efficiency, less noise– Increase market access (market entry, new business demand, multiple sectors)

• Solution tied to annual savings (operations, security, finance, insurance)• Transparency and compliance issues

– Removes “moral” hazard– Standardized data– Defensible model for investment and decision processes

• Accountability and defensibility of budget and resource allocation across portfolio in the most efficient and cost effective manner

• Return on Investment and ROSI calculations integrated into product and service delivery

• Scaleable ROSI based solution supports use to manage global portfolio• Removes static “paper” – replacing with real time data management

Overview Presentation - Alea HoldingsAlea Holdings LLC is a veteran owned small business...

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