COPING WITH UNCERTAIN TIMES

1. COPING WITH UNCERTAIN TIMES Lisa SciarrinoUniCredit Group Jim CertomaCPE Ed TracyThe Tracy Group, Inc. Paul Katzer Pfizer

2. Intro 1. Here as reps of different industries 2. CPE is our extended community of practice About CPE • To provide our members with innovative strategies, tools and forums to advance the practice of business continuity and crisis management. To achieve its mission, the CPE: • Hosts industry-leading seminars and special events on current issues and future challenges; • Educates its members through interactions with industry experts and pre-eminent service and product providers; • Facilitates information-sharing across diverse industries and between the public and private sectors; • Promotes the recognition of operational resiliency as a priority concern among business and government leaders. • Three Chapters: New York, Long Island, and Washington D.C.

3. II. Common Problem Statement 1. All industries facing budget constraints 2. Impacts BCM funding, even if there are regulatory requirements for BCM 3. Business units also resource constrained – challenging to get them to engage 4. BCM practitioners need to do more with less....

4. FINANCIAL SERVICES PERSPECTIVE Business Continuity is a Requirement • BCP is a requirement in financial services and is followed up continually by auditors at all levels (internal, external, regulatory) • Even in challenging economic times, commitment to BCP is a must and a good business practice • Our challenge is to deliver the needed service in the most efficient manner • Work with vendors to re-negotiate contracts • Senior Management/Board must understand the need for a real, workable plan, not just a big “handbook” • Move BCP responsibilities to departmental level • Consider lower-cost alternatives to accomplish testing objectives

5. PROFESSIONAL OVERVIEW Business Continuity is Cyclical • Business continuity is a regulatory requirement in financial services and a best practice in many other sectors. It is not going away. • Events routinely occur and new threats are continually identified. • We have always worked to promote and sell the need and value of an effective program – Missionary Role. • Business continuity will continue to grow in importance and transform itself. • Today’s challenges are significant but not unique – Keep it in perspective.

6. PROFESSIONAL OVERVIEW Today’s Challenges Reduction and re-allocation of staffing and budgets. • Must continue to maintain an effective program with decreased business continuity staff • Difficulty getting approval for expenditures on hardware, software and tools to do your job • Business areas have competing priorities for their resources • Operational Risk has high priority within organizations Business Continuity Programs demands are increasing • Greater involvement in Incident Response and Crisis Management • Business changes at a rapid pace • Greater emphasis on the reliance of third party vendors and the availability of technology • New threats require plan adjustments to insure resiliency • Greater need for detailed testing and follow-up

7. PROFESSIONAL OVERVIEW Addressing the Situation • Rethink your program approach • Focus on an all hazards planning approach • Combine plans within organizational units • Leverage work (process maps) completed by other areas • Reduce redundant demands on business units • Streamline the planning process • Make changes to your testing frequencies, dates and participation

8. PRIVATE COMPANY PERSPECTIVE Don’t Let A Financial Crisis Turn Into A Business Continuity Crisis! Results of a Financial Crisis: • Budget Constraints. • Downsizing/Layoffs of Critical Personnel. • Reduced Business Continuity Management Emphasis. • Additional Risk to the Enterprise. The Tracy Group, Inc.

9. PRIVATE COMPANY PERSPECTIVE Publicly Held Companies • Must Continue to Meet the Requirements of the • Sarbanes-Oxley Act of 2002. The Tracy Group, Inc.

10. PRIVATE COMPANY PERSPECTIVE Sarbanes – Oxley Act of 2002: • Mandates that organizations understand the risks that may impact the financial reporting process. • A company’s processes, systems, and controls must make available all material information needed for fair presentation and disclosure in SEC reports. • Report on the effectiveness of internal controls over financial reporting. • Quarterly certifications. The Tracy Group, Inc.

11. PRIVATE COMPANY PERSPECTIVE Reduction in Business Continuity Personnel • Utilize Internal Audit Staff to Update, Maintain, and Test Business Continuity Programs. • Utilize Corporate Accounting/Finance Personnel to meet the requirements of the Sarbanes-Oxley Act of 2002. • Utilize Consultants. The Tracy Group, Inc.

12. GLOBAL PHARMACEUTICAL • Global Footprint • Sites • Supply Chains • Markets • Interdependencies • Complex processes • Diverse risk profiles and business impacts • Vendors • Many are small businesses • Need to test their resilience • Focus on Cost • Reduce operating costs • Impact to global and site BCM funding • If it’s not required … OPERATING ENVIRONMENT

13. “There cannot be a crisis next week. My schedule is already full.” - Henry Kissinger

14. GLOBAL PHARMACEUTICAL Deploying a global BCM program Supporting site and global planning, enterprise reporting and providing a common alerting platform . . . . . . requires partnering with sites and business lines, providing efficiencies and setting realistic goals.

15. IV. Closing Theme 1. Risks aren't going away – what's hot changes, but there's always something new • Need for creativity; solutions need to meet our specific industry/company needs • CPE – local forum for discussing evolving challenges and how different businesses approach those challenges