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  1. 1. COPING WITH UNCERTAIN TIMES Lisa Sciarrino UniCredit Group Jim Certoma CPE Ed Tracy The Tracy Group, Inc. Paul Katzer Pfizer
  2. 2. <ul><li>1. Here as reps of different industries </li></ul><ul><li>2. CPE is our extended community of practice </li></ul><ul><li>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: </li></ul><ul><li>Hosts industry-leading seminars and special events on current issues and future challenges; </li></ul><ul><li>Educates its members through interactions with industry experts and pre-eminent service and product providers; </li></ul><ul><li>Facilitates information-sharing across diverse industries and between the public and private sectors; </li></ul><ul><li>Promotes the recognition of operational resiliency as a priority concern among business and government leaders. </li></ul><ul><li>Three Chapters: New York, Long Island, and Washington D.C. </li></ul>About CPE Intro
  3. 3. <ul><li>1. All industries facing budget constraints </li></ul><ul><li>2. Impacts BCM funding, even if there are regulatory requirements for BCM </li></ul><ul><li>3. Business units also resource constrained – challenging to get them to engage </li></ul><ul><li>4. BCM practitioners need to do more with less.... </li></ul>II. Common Problem Statement
  4. 4. FINANCIAL SERVICES PERSPECTIVE Business Continuity is a Requirement <ul><li>BCP is a requirement in financial services and is followed up continually by auditors at all levels (internal, external, regulatory) </li></ul><ul><li>Even in challenging economic times, commitment to BCP is a must and a good business practice </li></ul><ul><li>Our challenge is to deliver the needed service in the most efficient manner </li></ul><ul><ul><li>Work with vendors to re-negotiate contracts </li></ul></ul><ul><ul><li>Senior Management/Board must understand the need for a real, workable plan, not just a big “handbook” </li></ul></ul><ul><ul><li>Move BCP responsibilities to departmental level </li></ul></ul><ul><ul><li>Consider lower-cost alternatives to accomplish testing objectives </li></ul></ul>
  5. 5. PROFESSIONAL OVERVIEW Business Continuity is Cyclical <ul><li>Business continuity is a regulatory requirement in financial services and a best practice in many other sectors. It is not going away. </li></ul><ul><li>Events routinely occur and new threats are continually identified. </li></ul><ul><li>We have always worked to promote and sell the need and value of an effective program – Missionary Role. </li></ul><ul><li>Business continuity will continue to grow in importance and transform itself. </li></ul><ul><li>Today’s challenges are significant but not unique – Keep it in perspective. </li></ul>
  6. 6. <ul><li>Reduction and re-allocation of staffing and budgets. </li></ul><ul><ul><li>Must continue to maintain an effective program with decreased business continuity staff </li></ul></ul><ul><ul><li>Difficulty getting approval for expenditures on hardware, software and tools to do your job </li></ul></ul><ul><ul><li>Business areas have competing priorities for their resources </li></ul></ul><ul><ul><li>Operational Risk has high priority within organizations </li></ul></ul><ul><li>Business Continuity Programs demands are increasing </li></ul><ul><ul><li>Greater involvement in Incident Response and Crisis Management </li></ul></ul><ul><ul><li>Business changes at a rapid pace </li></ul></ul><ul><ul><li>Greater emphasis on the reliance of third party vendors and the availability of technology </li></ul></ul><ul><ul><li>New threats require plan adjustments to insure resiliency </li></ul></ul><ul><ul><li>Greater need for detailed testing and follow-up </li></ul></ul>PROFESSIONAL OVERVIEW Today’s Challenges
  7. 7. <ul><li>Rethink your program approach </li></ul><ul><li>Focus on an all hazards planning approach </li></ul><ul><li>Combine plans within organizational units </li></ul><ul><li>Leverage work (process maps) completed by other areas </li></ul><ul><li>Reduce redundant demands on business units </li></ul><ul><li>Streamline the planning process </li></ul><ul><li>Make changes to your testing frequencies, dates and participation </li></ul>PROFESSIONAL OVERVIEW Addressing the Situation
  8. 8. Don’t Let A Financial Crisis Turn Into A Business Continuity Crisis! <ul><li>Results of a Financial Crisis: </li></ul><ul><ul><li>Budget Constraints. </li></ul></ul><ul><ul><li>Downsizing/Layoffs of Critical Personnel. </li></ul></ul><ul><ul><li>Reduced Business Continuity Management Emphasis. </li></ul></ul><ul><ul><li>Additional Risk to the Enterprise. </li></ul></ul>PRIVATE COMPANY PERSPECTIVE The Tracy Group, Inc.
  9. 9. PRIVATE COMPANY PERSPECTIVE Publicly Held Companies <ul><li>Must Continue to Meet the Requirements of the </li></ul><ul><li>Sarbanes-Oxley Act of 2002. </li></ul>The Tracy Group, Inc.
  10. 10. Sarbanes – Oxley Act of 2002: <ul><li>Mandates that organizations understand the risks that may impact the financial reporting process. </li></ul><ul><li>A company’s processes, systems, and controls must make available all material information needed for fair presentation and disclosure in SEC reports. </li></ul><ul><li>Report on the effectiveness of internal controls over financial reporting. </li></ul><ul><li>Quarterly certifications. </li></ul>PRIVATE COMPANY PERSPECTIVE The Tracy Group, Inc.
  11. 11. Reduction in Business Continuity Personnel <ul><li>Utilize Internal Audit Staff to Update, Maintain, and Test Business Continuity Programs. </li></ul><ul><li>Utilize Corporate Accounting/Finance Personnel to meet the requirements of the Sarbanes-Oxley Act of 2002. </li></ul><ul><li>Utilize Consultants. </li></ul>PRIVATE COMPANY PERSPECTIVE The Tracy Group, Inc.
  12. 12. GLOBAL PHARMACEUTICAL OPERATING ENVIRONMENT <ul><li>Global Footprint </li></ul><ul><li>Sites </li></ul><ul><li>Supply Chains </li></ul><ul><li>Markets </li></ul><ul><li>Interdependencies </li></ul><ul><li>Complex processes </li></ul><ul><li>Diverse risk profiles and business impacts </li></ul><ul><li>Vendors </li></ul><ul><li>Many are small businesses </li></ul><ul><li>Need to test their resilience </li></ul><ul><li>Focus on Cost </li></ul><ul><li>Reduce operating costs </li></ul><ul><li>Impact to global and site BCM funding </li></ul><ul><li>If it’s not required … </li></ul>
  13. 13. “ There cannot be a crisis next week. My schedule is already full.” - Henry Kissinger
  14. 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. 15. <ul><li>1. Risks aren't going away – what's hot changes, but there's always something new </li></ul><ul><li>Need for creativity; solutions need to meet our specific industry/company needs </li></ul><ul><li>CPE – local forum for discussing evolving challenges and how different businesses approach those challenges </li></ul>IV. Closing Theme