COPING WITH UNCERTAIN TIMES

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COPING WITH UNCERTAIN TIMES
Lisa Sciarrino UniCredit Group Jim Certoma CPE Ed
Tracy The Tracy Group, Inc. Paul Katzer Pfizer
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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.

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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....

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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

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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.
• Todays challenges are significant but not unique
  Keep it in perspective.

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PROFESSIONAL OVERVIEW
Todays 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

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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

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Dont Let A Financial Crisis Turn Into A Business
Continuity Crisis!
PRIVATE COMPANY PERSPECTIVE

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

• Mandates that organizations understand the risks
  that may impact the financial reporting process.
• A companys 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.
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Reduction in Business Continuity Personnel
PRIVATE COMPANY PERSPECTIVE

• 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.
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GLOBAL PHARMACEUTICAL
OPERATING ENVIRONMENT
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There cannot be a crisis next week. My schedule
is already full. - Henry Kissinger
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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.
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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

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