FIRMA 2010

1. FIRMA 2010 Larry J. Kallembach April 1, 2010

2. MB Financial Headquarters - September 2008 Chicago is a Lakefront city…….

3. Roads to MB Financial Headquarters Too bad…..we are not on the Lake.

4. Chicagoland Flooding - September 13 -15, 2008 Your data center is where???

5. The problem is often not what you expect… The problem was not the building or datacenter, they were safe. The problem was one of access, and communications. So while we planned for a potential flood, the flood failed to follow the plan. Resulting in confusion, and people on their own.

6. Disasters happen • They come in a variety of flavors • Present a risk to EVERY business • Disasters are often relative • Destructive in more ways than one • 29% of businesses that suffer a major disaster fail within two to four months; 43% go out of business within 5 years. • Companies that aren't able to resume operations within ten days of a disaster are not likely to survive .

7. So why is this important • We live in a World of Trust • Clients trust us with their; • Money • Assets • Information • Needs • Our clients not only trust us, they expect us to be prepared. • This is especially true for many of the clients who use Wealth Management, Investment, and Fiduciary services. • They will come to us in time of need.

8. Your response is reflective of your organization • The MB culture and values – • consist of high performance, client focus, and open communication. • The MB response - • Protection of people • Protection of assets • Resumption of business operations • MB preparedness – • Awareness and education • Training and testing • Constant plan improvement in a hope to be prepared

9. Plan Preparers and Plan Participants • Plan preparers checklist • Operations and how they can be impacted • Criticality of processes • Vendors, their key role, their continuity plan • Vendor contracts and contract limits • Employee roles in continuing operations • Development of new plans • Maintain existing plans • Conduct assessments for risk identification and impact analysis • Assure testing *Being prepared in the areas of disaster recovery and business continuity is an essential component in your commitment to clients and their trust in you to protect their financial assets*

10. Preparers Business Continuity Program • Organizational • Profile • Financial institution • Highly regulated • Perform time-sensitive • functions for customers • Dependant on vendors • and systems • Objectives • Protect people • Ensure continuity of • business • Create tested plans • Minimize disruption • Prevent financial & • operational loss • Minimize impact to our • public image • Types of Plans • Crisis Management • Senior Management • Communications • Master Teams • Business Units/Branches • IT Data Center Recovery • Application/System Proven Business Continuity Preparedness Assessments & Risk MB’s Strategy Based On Assessments Document & Demonstrate Ability • Risk Assessments • Business Impact Analysis • Threat Matrix • Vendor Assessments • System Assessments • Strategy • Alternate locations for • business units • Backup data center • Hot/warm site for critical • systems • Redundancy for telephony • and Active Directory • System recovery tiers • Continued communication • and awareness • TestingProgram • Quarterly IT tests of • critical systems • Vendor connectivity tests • Annual plan certifications • Annual management • exercises • Defined metrics, • execution and • measurement for • feedback & improvement

11. So why is this important? In preparing for battle I have always found that plans are useless, but planning is indispensable. Dwight D. Eisenhower34th president of US 1953-1961 (1890 - 1969) So be more than a plan participant be a plan partner

12. How can I be a partner, not just a participant • Understand your institutions BCP/DR programs and help to improve them • Know people on the various teams as you may need them • Participate in your areas risk assessments – you know your business and what is critical. Review the final reports…do you agree • Think about your technology needs. How critical are they and do they differ from the rest of the organization • Participate in training and encourage others to do the same • Keep things in perspective…what is the most important thing • Take responsibility as a disaster belongs to all of us

13. As a partner think about your risks… • If there is a problem, what do I do? • How can I service clients if the systems are down? For an hour? Day? Week? • What if I don’t have a phone? • Where do I go if my building is not around? Or I can not get there? • Do I know what to do in an emergency? Where to go? Who to contact? • How do I communicate with my clients? • Am I keeping things in perspective

14. Make it part of your work day • Keep the plan alive and regularly update • Listen to others - incorporate their recommendations • Communicate with your peers and the planners - Truly be a partner in the resumption process • Ask questions ……………Voice your concerns • Actively participate in any test • Identify what is REALLY critical to your particular business and assure it is in your plan • While risk avoidance is best, when problems occur it is all about risk mitigation and management

15. Do you part Be a partner……. Be prepared…….

16. This strategy is not new Know thy self, know thy enemy. A thousand battles, a thousand victories. Sun Tzu

17. THANK YOU Larry J Kallembach lkallembach@mbfinancial.com 847.653.2232