The document discusses managing and mitigating risk in businesses. It outlines an evolving risk landscape with new technologies, data growth, and regulatory compliance challenges. Different types of risks are described, from frequent low impact issues to infrequent high impact disasters. Key success factors for managing risk include lowering costs, ensuring compliance, protecting data and applications, and securing the data center. IBM is positioned as being able to help businesses fuel innovation, secure data, meet compliance, and secure their data centers from threats to ensure productivity and reputation.

1. Don’t Risk IT: Managing & Mitigating Risk in Your Business Melinda Fieldus

2. Agenda Risk Landscape today Risks Scenarios (Whispir) Key Success Factors for Managing Risk How IBM can help (and why IBM)

3. Evolving towards a Smarter Planet 162 million Almost 162 million smart phones were sold in 2008, surpassing laptop sales for the first time. 90% Nearly 90% of innovation in automobiles is related to software and electronics systems. 1 trillion Soon, there will be 1 trillion connected devices in the world, constituting an “internet of things.”

4. Evolving towards a Smarter Planet “ We have seen more change in the last 10 years than in the previous 90.” Ad J. Scheepbouwer, CEO, KPN Telecom New possibilities. New complexities. New risks....... Information Explosion Emerging Technologies Privacy Risks Complex Regulatory Landscape

5. Not all Risks are Created Equal Frequency of occurrences per year Frequent Infrequent Consequences (single occurrence loss) in dollars per occurrence Low High Viruses Worms Disk failures System availability failures Pandemics Natural disasters Application outages Data corruption Network problems Building fires Terrorism/civil unrest Data driven Event driven Business driven Regulatory compliance Workplace inaccessibility Failure to meet industry standards Regional power failures Governance Source: IBM Data growth Long term preservation Mergers and acquisitions New products Marketing campaigns Audits

6. In some industries, downtime costs can equal up to 16 percent of revenue 1 For 32 percent of organizations, just four hours of downtime could be severely damaging 2 Online security attacks are accelerating , causing downtime and loss of revenue Data is growing at explosive rates Security and resiliency are a top area of concern and spend for all size companies Some industries are enforcing fines for downtime and inability to meet regulatory compliance $6.6M3 = Estimated cost of a data security breach Threats and disruptions can vary greatly in business impact… Infonetics Research, The Costs of Enterprise Downtime: North American Vertical Markets 2005 , Rob Dearborn and others, January 2005. Continuity Central, “Business Continuity Unwrapped,” 2006, http://www.continuitycentral.com/feature0358.htm 2008 Annual Ponemon Institute Annual Survey

7. How do you…? Increase compliance regulations without increasing expenses Block potential incoming threats without inhibiting traffic flow and uptime Prepare for the unexpected data breach or disaster Ignoring risk management is not an option “ I need to manage complexity of compliance across my organization and silos -- and be audit-ready all the time.” “ Lack of resources, expertise and tools to cost effectively manage multi-vendor environments” “ I need to protect against threats – even the ones I’m not prepared for.” “ I need to provide access to and recoverability of data at any time.”

8. The key success factors for managing risk Manage risk Lower total cost of ownership Demonstrate compliance Effectively manage compliance Ensure privacy and recoverability of data Protect sensitive and mission critical applications Secure data center access and administration Provide threat and application security Maintain ‘audit-ready’ status Reduce cost of security & resiliency Protect data & manage compliance Secure your data center

9. Ensure the uninterrupted flow of information throughout an enterprise Preempt risks– while still supporting business goals – and addressing various regulatory, organizational and industry-based compliance drivers Optimize employee productivity, workplace continuity, and business agility Provide efficiencies in on-going compliance maintenance Reducing Costs while Ensuring Strong Security and Resilience Increases Profitability

10. Fuel Innovation by Protecting Critical Data while Meeting Regulatory Compliance Mandates Prevent unauthorized deletion or modification of company data Reduce risks related to non compliance to regulatory requirements Protect sensitive business processes and mission critical applications and information Leverage new technologies and innovations to achieve business goals

11. Secure the Datacentre from Threats to Ensure Productivity, Profitability and Reputation Management Control and monitor internal and external user access and modification to sensitive information, applications and infrastructure Gain visibility of organization security posture across heterogeneous datacenter assets Achieve comprehensive and proactive security control for protection across the threat landscape Avoid costs of downtime associated with protecting your data center from outages; simplify the recovery of data across the enterprise

12. Why IBM? IBM has a unique perspective on Managing Risk 400,000 employees across 130 countries with private data to protect Helping customers build smarter cities, smarter grids, rail systems, new data centers, trusted passport systems and more A leading provider of security and business resiliency solutions across a vast array of industries and services segments A leading provider of software, hardware, and service solutions around the world Trusted Advisor Security Company Solution Provider The Company

13. A smarter business needs smarter systems . Reduce the cost of security and resiliency. Protect data and manage compliance. Secure your data center . IBM can help you manage risk .

14. Textit Live Polling Q: Is addressing RISK a key focus in your current IT Strategy? Y / N