9 th ACG Cross-Training Seminar

1. 9th ACG Cross-Training Seminar Precautionary Measures during Outbreak of SARS (2003) Hong Kong Securities Clearing Company Limited 5th July 2007 – Kuala Lumpur

2. Agenda • Planning and Preparation • Mitigating Measures - Financial Service Sector - Clearing House • Crisis Management • Reported SARS Case • Reassemble of Normal Operations

3. 1. Planning and Preparation (1) Planning and Preparation Stage Crisis Management Stage Stage 1 Stage 2 [only in crisis situation which impact clearing house operations] Identify possible scenarios which could impact the clearing house operations • Risk Analysis • assess threats • and risks Activation of contingency plan Mitigating measures

4. Possible scenarios 1. Planning and Preparation (2) Identified the possible risk scenarios as illustrated below:-

5. 1. Planning and Preparation (3) Risk Analysis • Which might lead to ….. • Disruption to the Clearing and Settlement services, due to

6. Mitigating measures 2. Mitigating Measures Aim To ensure the security market continue to operate as normal as possible by minimizing the potential impact.

7. Mitigating measures 2. Mitigating Measures - Financial Service Sector (1) • Contingency Planning of Regulators • To maintain critical operations • Split team arrangement • Rotate staff to work from home as a 3rd level backup

8. Mitigating measures 2. Mitigating Measures - Financial Service Sector (2) • Contingency Planning of Regulators (Cont’d) • To ensure staff’s health awareness • Issue comprehensive guidelines to staff • Advise staff of the appropriate measures to be taken with reference to the health advice provided by the Department of Health

9. Mitigating measures 2. Mitigating Measures - Financial Service Sector (3) • Market Awareness • To ensure market practitioners could continue their operations • Request for comprehensive business continuity plans • Issue circulars to draw their attention to the health advice from Department of Health • Discuss with selective practitioners to ensure they have alternative measures, if needed

10. Mitigating measures 2. Mitigating Measures - Clearing House (1) • Externally • To ensure clearing participants exercised all necessary • preventive measures • Issue circulars to remind them to take precautionary measures • Request them to inform the clearing house, in case any of their staff confirmed having contracted SARS • Encourage them to request their staff to put on masks when they access the premises of the clearing houses • Inform them of the clearing houses’ precautionary measure

11. Mitigating measures 2. Mitigating Measures - Clearing House (2) • Staff Issues • To ensure staff awareness • Establish SARS reporting guidelines, in case of any staff or their family members show symptoms of suspected SARS • Provide up-to-date SARS information to staff such as latest medical treatment, precaution advice from Department of Health • Arrange with community medical service alliance for fast diagnosis of suspected SARS symptoms

12. Mitigating measures 2. Mitigating Measures - Clearing House (3) • Staff Issues (cont’d) • To ensure staff wellness • Provide sufficient masks and gloves for all staff • Arranged extra periodic cleanings in all offices areas • Minimize physical contacts of staff from different sites • Avoid face-to-face communications, conference call should be arranged, if needed • Reduce the level of overseas traveling, especially for SARS-infected countries

13. Mitigating measures 2. Mitigating Measures - Clearing House (4) • Accessibility of Workplace • To ensure all clearing systems operated as normal • Reference to the existing Business Continuity Plan, hot back-up sites and stand-by facilities located at different districts for the clearing systems • Implement a 3-shift arrangement for IT staff, for round-the clock system operations

14. Mitigating measures 2. Mitigating Measures - Clearing House (5) • Accessibility of Workplace (Cont’d) • To maintain the clearing house operations and services • Split the mission critical functions into multiple locations to prevent “single-point” failure, i.e. Teams A and B, with Team B working at Secondary Sites • Rotate staff to work at home • Engage a cleaning company for the necessary cleansing and disinfection operations in case of SARS problem

15. Mitigating measures 2. Mitigating Measures - Clearing House (6) • Challenges : to achieve “Split Teams” within a short period of time • Identify suitable office location for the split teams • Assemble sufficient equipment • Identify the tasks to be split between Teams A and B • Re-arrange the operation flow with Teams A and B • Re-establish the communication channels internally and externally

16. 3. Crisis Management (1) Activation of contingency plan • In case a confirmed SARS case in Team A at Primary Site • Evacuate all staff from the office as soon as possible • Arrange medical checks for staff • Arrange close contact to infected staff to attend a SARS screening at the designated clinics • Staff might need to stay at home for 7 to 10 days

17. 3. Crisis Management (2) Activation of contingency plan • In case a confirmed SARS case in Team A at Primary Site • (cont’d) • Arrange office cleansing and disinfecting of the contaminated site after evaluation, which will be closed for 48 hours • Inform building management of the affected office • Move Team B from Secondary Site to the Back-up site to continue operation • Notify Participants of alternative arrangement with activation of Back-up site • Move Team B back to the Primary Site when its reopened

18. Communicate with Regulators Activate contingency plan Department Head reports to HR of potential case Staff who suspect infection of SARS reports to supervisor 3. Crisis Management (3) Activation of contingency plan Communication during Contingency Internal Communications External Communications • Participants’ Communications: • Issue broadcast messages regarding the alternative arrangement, if applicable • Handle Hotline enquires

19. 4. Reported SARS Case Activation of contingency plan • A family member of a staff confirmed SARS infection • Action Taken – no activation of contingency plan since it only affected staff from supporting functions • Arrange comprehensive cleansing and disinfecting of the entire floor of the contaminated office • Issue notice to all staff • Require all related staff to wear masks at all times in the office • Suspend cross-office visit of the related staff temporarily, where ever possible

20. 5. Reassemble of Normal Operations • Upon removing Hong Kong from • the Infected Area List • by WHO on 23 June 2003 The split team arrangement re-assembled within one week

21. Thank You