Citrin Cooperman professionals joined InfraGard for a webinar, “Navigating COVID's Impact on the Financial Services Industry and Lessons Learned/Actions Your Company Can Take From Their Experiences: Lessons Learned and Actions Your Company Can Take From Their Experiences."

1. WELCOME
Navigating COVID-19’s impact on the financial services industry

2. NAVIGATING COVID-19’S IMPACT ON
THE FINANCIAL SERVICES INDUSTRY
OCTOBER 15, 2020
LESSONS LEARNED AND ACTIONS YOUR COMPANY
CAN TAKE FROM EXPERIENCES.
https://www.nym-infragard.us

3. HOST AND MODERATOR
Dave Solano
President
NY Metro InfraGard
dsolano@nym-infragard.us
Anthony Cioffoletti
BOD and Financial Services Sector Chief
NY Metro InfraGard
acioffoletti@nym-infragard.us

4. Today’s Event
Topics will include:
 Crisis Management
 Talent, Culture, Compensation
 Supply Chain
 Financial Considerations:
 Banking and Capital Markets
 Hedge Fund
 Insurance
 Private Equity / Venture Capital
 Governance, Risk, and Controls
 Work From Home
 Cybersecurity and Privacy
 Operational Resilience
 Risk Management and Compliance
 Critical Systems or Data
 Incident Response
The contents of this webinar does not represent the opinions nor
is it in any way intended to represent the FBI. It is solely the
speaker's opinions to assist with national security.

5. PRESENTERS
Alex Reyes
CPA
Partner
FS Leader
areyes@Citrincooperman.com
646-596-0561
Kevin Ricci
MCSE, CISM, CISA, CRISC, QSA
Principal
TRAC
kricci@Citrincooperman.com
401-421-4800

6. It is the presence of financial services that enables a
country to improve its economic condition whereby
there is more production in all the sectors leading to
economic growth.
Financial services is a broad term used to describe the
various offerings within the finance industry ––
encompassing everything from insurance and money
management to payments and digital banking
technology.
NY Metro InfraGard services the financial services
capital. More financial services companies are
concentrated in this region than anywhere else on Earth.
IMPORTANCE OF FINANCIAL
SERVICES

7. InfraGard Fast Facts
 Mission: Protect the nation’s critical infrastructures
 79 Chapters Nationwide
 Members from 350 of the Fortune 500
 Members are security professionals with industry expertise
 All approximately 62K members are vetted by FBI
 Augments the NIST Cybersecurity Framework Initiative under Presidential Executive
Order 13636 and Presidential Policy Directive (PDD-21)
New York Metro InfraGard Members Alliance http://nym-infragard.us/
InfraGard is a partnership between the FBI and members
of the private sector. The InfraGard program provides a
vehicle for seamless public-private collaboration with
government that expedites the timely exchange of
information and promotes mutual learning opportunities
relevant to the protection of Critical Infrastructure.

8. NY METRO INFRAGARD
MEMBER POPULATION IS
ALMOST ¼ OF OUR MEMBERSHIP IDENTIFIES AS BANKING & FINANCE
New York Metro InfraGard Members Alliance http://nym-infragard.us/
Membership data as of 2019
425 ~
Banking
& Finance
12 ~
Chemical
138 ~ Comm Fac
56 ~ Communication
10 ~ Critical Manf.
2 ~ Dams
26 ~ Defense
124 ~
Em…56 ~
En…
12 ~…
92 ~ Govt
Facilities
144 ~ Healthcare &
Public Health
497 ~
Information &…
1 ~ Nuclear
50 ~
Transportation
9 ~ Water 12 ~ UNKInfraGard MembershipUS Critical Infrastructure
areas include:
1. Financial Services
2. Information Technology
3. Communications
4. Critical Manufacturing Base
5. Defense Industrial Base
6. Energy
7. Healthcare and Public
Health
8. Transportation
9. Chemical
10. Dams
11. Emergency Services
12. Commercial Facilities
13. Food and Agriculture
14. Nuclear Reactors
15. Water and Wastewater
16. Government Facilities

9. NAVIGATING COVID-19’S IMPACT ON
THE FINANCIAL SERVICES INDUSTRY:
LESSONS LEARNED AND ACTIONS YOUR
COMPANY (FS OR NON-FS) CAN TAKE
FROM THEIR EXPERIENCES
WWW.CITRINCOOPERMAN.COM
CITRIN COOPERMAN’S TRAC AND FS PRACTICES
2020

10. TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC
AGENDA
TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC

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MEETING OBJECTIVE / AGENDA
SECTION 2
SECTION 3
SECTION 4
FOCUSED ON TODAY FOR
TOMORROW
WHERE WE WERE
MARCH / APRIL 2020:
 CRISIS MANAGEMENT
MIDDLE OF 2020 TO PRESENT
 RECOVERY &
REINVENTION
 BUSINESS MODEL
RISKS
 SECTOR SPECIFIC
 ADJUSTMENTS
SECTION 1 AGENDA / TRAC & FS
EXPERTISE
SECTION 5 FUTURE REIMAGINED
SECTION 6 Q&A

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ABOUT OUR TRAC AND FS PRACTICES
TRAC Overview
Citrin Cooperman’s Technology, Risk Advisory,
and Cybersecurity practice (TRAC) offers:
• IT Risk
• Risk Advisory including Internal Audit, SOX,
and Compliance
• Cybersecurity & Privacy
TECHNOLOGY, RISK ADVISORY, AND
CYBERSECURITY
FS Overview
We provide services to many businesses in this
arena, which include:
• Domestic and offshore hedge funds
• Broker-dealers
• Specialty finance companies
• Private equity funds
• Registered investment advisors (“RIAs”)
• Registered investment companies
• Banking and capital markets
FINANCIAL SERVICES PRACTICE

13. TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC
FOCUSED
ON TODAY FOR
TOMORROW
OnTRACBusiness walks a fine line between risk and reward
Let us help you stay OnTRAC

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FOCUSED ON TODAY FOR TOMORROW
Where Were We: The First Nine Months of 2020
 Disruption, innovation, and change were common themes at the start of the
year
 Business as usual turned into a foreign concept due to COVID-19
 Evolution, transition, and in some cases, reinvention is now needed for
survival
Planning for Tomorrow: Last Quarter of 2020 and 2021
 Preparation, planning, and strong leadership is crucial
 Developing a comprehensive playbook to navigate change will be necessary

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FOCUSED ON TODAY FOR TOMORROW
Discussion
 How Prepared were FS Institutions with the fallout from COVID-19
 Issues & Actions FS Institutions took addressing the environment related to
COVID-19
 Lessons learned & actions all companies (FS and NON-FS) can take from their
experiences

16. TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC
WHERE WE WERE
MARCH / APRIL 2020
CRISIS MANAGEMENT
TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC

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CRISIS MANAGEMENT
Companies went back to basics:
 Evaluated their business operations and priorities
 Understood their cash flow, liquidity, and access to alternative financing
Questions that were asked:
 Do you have a solid business plan for crisis management?
 Do you have the right team and coordinated approach?
 Is your business model set up to handle a crisis like this?
 Can your technology and infrastructure support you?
 Is the financial strength of your company strong enough to weather the storm?
 Do you have strong relationships in place with the right external advisors?

18. TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC
MIDDLE OF 2020 TO
PRESENT
RECOVERY &
REINVENTION
TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC

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RECOVERY & REINVENTION
 Preparation is key
 Strong preparation, critical analysis, and decisive action steps to position the business
 Keeping focus on capital expenditure, forecasting, and budget
 Future business plans – continue to reassess your business model

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RECOVERY & REINVENTION – BUSINESS MODEL
FS and NON-FS companies and their management teams should be looking
at multiple factors that comprise their business model including:
 Talent assessment, culture review and compensation planning
 Supply chain modifications
 Financial considerations
 New regulatory guidelines that could impact the way you do business
 Product and customer assessment
 Market and competitive analysis including an assessment of what opportunities may exist
for potential acquisitions to strengthen your “re-entry” in what will be the new or
“abnormal” normal

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RECOVERY & REINVENTION – BUSINESS MODEL
WORKING FROM HOME IN THE COVID ERA
Working From Home: The Risks (Cybersecurity & Privacy)
 Transition to a work from home approach had to be completed “in a rush”, creating new
potential security risks
 Home workspaces do not have the same protections that a corporate environment provides
 Challenges with monitoring combined with unpatched home computers and routers have
created dangerous vulnerabilities
 Spear phishing and malware attacks have surged due to criminals taking advantage of the
COVID-related chaos
 Training that reflects the new security and privacy challenges is critically important to keeping a
business safe

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Issue Impact/Action
Third Party Vendors  Inventory your critical vendors
 Risk rank your vendors
 Perform annual due diligence assessments
 Understand financial, operational controls
 Service Level Agreements
Business Continuity Planning  Business Impact Assessment
 Recovery Time Objectives – Recovery Point Objectives
 Manual Work Arounds
 BCP and Disaster Recovery Testing
 Force Majeure Clauses
FS Considerations – Supply Chain

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FS Considerations – Talent, Culture, Compensation
Issue Impact/Action
Work from home  Implement Remote Work Technology
 Ensure Technology is Assessed
Compensation and employee benefits  Conserve Cash – Salary Reduction Program
 Understand differences with layoff and furlough
 Stock Option Awards and Employee Repricing
Program
Maintaining a high performing culture  Effective technology can help to foster a cohesive
culture
 Virtual Happy Hours
 Communication

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Issue Impact/Action
Credit Quality and Liquidity  Credit Quality Deterioration
 Current Expected Credit Losses (CECL)
 Scenario Planning with Economic Uncertainty
Low Interest Rate Environment  Margin pressure with low global interest rates
 Liquidity and Capital Reserves – Added Pressure
 Optimize Strategy for Managing:
 interest rate sensitivity
 earnings
 liquidity
 capital
Banking and Capital Markets Financial Considerations

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Issue Impact/Action
Cost Structure and Balance Sheet  Optimize workflows
 Balance fiscal responsibilities vs stakeholder
expectations
 Macro and Micro Economic Focus
Fund Returns in the Short Term and Redemptions  Expect returns to be volatile in the short term
 Redemptions could skyrocket
Fee Pressure  Revisit Fee Models to Align with Current Environment
Hedge Fund Financial Considerations

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Issue Impact/Action
Impact on New Insurance Assets  Retail and Commercial Customers Looking to Cut Back
on Spend
 Insurance Brokers Struggling to Operate
 Existing Policies Being Cancelled or Not Paid
Impact on Insurance Liabilities  Payouts Set to Rise
Insurance and Investments  Low Interest Rate Environment Dampen Investment
Returns
 Cash Inflows Down
 Increases in Derivative Requirements
 Dividend Income Reduction
Insurance Financial Considerations

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Issue Impact/Action
Investments and Deal Making  Deal Making Fell off Sharply
 PE Funds Have Trillions in Uncalled Capital
Portfolio Company Valuations  General Partners Have Shifted to Triage Mode
Lending Public / Private  Lending On New Deals Slowed Down
 Private Lenders Filled The Gaps
 Private Debt Funds Emerged
PE / VC Financial Considerations

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Issue Impact/Action
PE Ownership of Underlying Companies is Not
Designed to be Long Term
 Exits will Drop
 Holding Periods will Extend
 Evaluate Portfolio Company Operations
 Additional Capital Investments
PE Allocations  Unlikely to Shake Underlying Confidence in PE
 Investors Increased PE Allocations
Fund Redemptions and Other Matters  Demand Full Transparency
PE / VC Financial Considerations

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Issue Impact/Action
Operational Resilience  Compliance Focus
 Key Controls
 Innovative Solutions
Risk Management  Focus on:
 Financial Risk
 Operational Risk
 Compliance and Regulatory
 Information Technology Risk
 Market Risk
 Credit Risk
FS Considerations – Governance, Risk and Controls

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Issue Impact/Action
Cybersecurity and Privacy  Understand Critical Assets
 Sensitive Data
 Threat Actors
 Impact and Likelihood
 Identify Gaps Against a Framework
 Perform Threat and Vulnerability Assessments
 Penetration Testing
 Phishing
FS Considerations – Governance, Risk and Controls

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Issue Impact/Action
Incident Response  Develop Incident Response Plan
 Table-Top Exercises
 Forensics
FS Considerations – Governance, Risk and Controls

32. TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC
FUTURE REIMAGINED
TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC

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FUTURE REIMAGINED
Congratulations! You made it...sort of. Your business is still here, your workforce is back,
operations are running – what else is there?
Staying smart and resilient is critical – don’t relax just yet: view this as an opportunity!
1. Ask yourself, what lessons has the COVID-19 crisis taught you?
2. What improvements and new processes and controls have been put in place
3. Was the vision you built initially correct for the path?
4. Work from home – current focus?
5. Are there opportunities to branch out into new products or services?
6. How have your customer expectations shifted?
7. Does your brand reflect who you still are and who you want to be?

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FUTURE REIMAGINED
 The list of questions and may seem overwhelming, but it can open the door to a whole new
world of opportunity
 New plays and strategies will need to be drawn up
 Re-evaluate your company’s vision and position in the market - focus on what is working
and what no longer fits
 Change is hard – but remember the saying, “Of course it’s hard, if it was easy everyone
could do it!” COVID-19 has brought enough damage, don’t let the damage define your
company’s legacy – instead, leverage the strength of your business
Roadmap
The future will undoubtedly be different than today. Do you have right people, infrastructure,
and data you need to manage the new normal?

35. TRACOn Business walks a fine line between risk and reward
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CITRIN COOPERMAN AND
SHELTERED HARBOR
Q&A
TRACOn Business walks a fine line between risk and reward
Let us help you stay OnTRAC

36. THANKYOU
THE NY METRO INFRAGARD MEMBERS ALLIANCE
EXECUTIVE COMMITTEE AND BOARD OF DIRECTORS
WOULD LIKE TO THANK ALL THE ATTENDEES FOR
YOUR TIME TODAY AND FOR YOUR PARTNERSHIP IN
PROTECTING OUR NATION'S CRITICAL
INFRASTRUCTURE.
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