Managing Risk - Achieving Security and Resiliency with IBM

1. Managing Risk Achieving Security and Resiliency with IBM Theodor Stanescu Dennis van Hees April, 28 th 2010

3. 71% Percent of CIOs that rank risk one of their top 3 business priorities 54% Growth in annual storage shipments to meet explosion of data 500+ Percent increase seen last year in Web links that can harm your company

4. Resilience optimization is balancing the financial impact of risk and the solution cost. Resilience … rapidly adapt and respond to risks, as well as opportunities, in order to maintain continuous business operations, be a more trusted partner, and enable growth. (IBM BCRS Organization) Optimization (general) “… an act, process, or methodology of making something (as a design, system, or decision) as fully perfect, functional, or effective as possible” (Merriam – Webster Online Dictionary) Resilience optimization (RO) “ An approach to helping a business find, attain and sustain an appropriate balance between the costs of providing resilience and the business value of that resilience” (IBM Business Continuity and Resiliency Organization)

8. 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

9. Once risks are understood, an appropriate resilience strategy can be developed. Accept Accept the risk An exposure is deemed acceptable to the business Mitigate Mitigate the risk Strategy required and implemented to reduce risks Transfer Transfer the risk When it is more cost-effective to transfer to another entity (such as insurance, leaseback or outsource)

10. We can help you realize significant financial impacts and improvements in recovery service-level performance. Reactive Helps identify, quantify, and prioritize business and IT risks, then develop strategies and implement designs to address those risks Helps eliminate the impact of disruptive events with IT and work area recovery Helps balance workloads and reduce application, data and system loss Advisory Proactive Responsive IBM Resiliency Consulting Services IBM Managed Resiliency Services IBM Infrastructure Recovery Services

11. IBM Business Continuity and Resiliency Services provide end-to-end, comprehensive solutions to help keep your business operating. IBM Managed Resiliency Services IBM Infrastructure Recovery Services IBM Resiliency Consulting Services LEVEL OF ENGAGEMENT SERVICES CONTINUUM ADVISE RECOVER MANAGE LEVEL OF RESILIENCY

14. IBM’s global network of business process outsourcing and transformation delivery centers meets clients’ diverse, growing needs Edmonton Calgary Tulsa Lenexa Dallas Houston Costa Rica Bogotá Buenos Aires Hortolandia Nashville Atlanta Greenville Durham Lexington Endicott St. John Montreal Markham Toronto Greenock Rotterdam Newcastle upon Tyne Dublin Paris Bratislava Lisbon Budapest Athens Stockholm Krakow Chandigarh Calcutta Pune De lhi/Mu mbai Bangalore Manila Brisbane Shanghai Okinawa Tokyo Dalian Finance and administration Procurement Human resources Customer r elationship m anagement Industry-specific In plan

15. IBM delivers application services seamlessly through delivery centers leveraging IBM’s infrastructure, processes, tools and skilled resources Edmonton Guadalajara Mexico City San Jose Caracas Lima Asuncion Montevideo Buenos Aires Martinez Capetown Johannesburg Toronto Madrid Barcelona Eastern European sites Vilnius (Lithuania) Bucharest (Romania) Prague (Czech Republic) Szekesfehervar (Hungary) India sites Bangalore Pune Kolkata Chennai Hyderabad Delhi/Gurgaon China sites Dalian Shanghai Shenzhen Perth Adelaide Ballarat Melbourne Brisbane Sydney Canberra Ho Chi Minh Metro Manila Tokyo Brazil sites Hortolandia Sao Paulo Sao Salvadore Rio de Janeiro Nova Lima Strategic Regional Application Services Global Delivery Center (GDC) Calgary Vancouver Hanoi

16. IBM delivers high-quality infrastructure services to our clients from four hub countries - chosen because they optimize cost, skills, consistency of methodology and cross-functional delivery support Argentina sites Martinez Catalinas Urquiza Brazil sites Hortolandia Sao Paulo Rio de Janeiro India sites Bangalore Pune Delhi Gurgaon Hyderabad China sites Shanghai Dalian Shenzhen

17. Each region also supports a network of global and regional infrastructure delivery sites for the flexibility that clients expect North America sites Atlanta (2) Ashburn Boulder Chicago Columbus Dallas Lexington Los Angeles Miami Canada Calgary Toronto Montreal Sterling Forest Gaithersburg Mexico City Bogotá Santiago Caracas Hortolandia Sao Paulo Montevideo Buenos Aires Brno Dublin London Paris Madrid Lisbon Turin Szekesfehervar Copenhagen Johannesburg Dubai Hong Kong Taipei Shanghai Tokyo Seoul Singapore Ballarat Melbourne Canberra Auckland Wellington Sydney Europe sites Mechelen/Nossegem Montpelier Milan (2) Ehningen Frankfurt Kista/Solna Winterthur Portsmouth/The Nest Warwick India sites Bangalore Chennai Hyderabad Japan sites Haga Sagmino Kawasaki Makuhari Nanko Mitaka Mihama Shenzhen Service Delivery Center e-business Hosting Services (e-bHS) Business Continuity and Recovery Services (BCRS) EMEA Regional Global Delivery Center (GDC) Global Delivery Center Newark Poughkeepsie Raleigh Rochester San Jose Secaucus Southbury Sterling St. Louis United States

18. Business resilience from IBM: helping you reduce risk and optimize opportunities. A golf association protects over 500 gigabytes of mission-critical data every day via cloud computing using our business continuity and resiliency services; this includes over four million membership records and more than 150,000 daily e-mails. A leading UK-based metals trading exchange worked with IBM to design and deploy a fully dedicated, supplemental trading facility capable of 100 percent business continuity as a work area recovery site, saving the firm millions of dollars in trading losses and downtime costs in the event of a disaster.

19. Business resilience from IBM: helping you reduce risk and optimize opportunities. (continued) A European healthcare company was able to cut recovery times down to 10-20 minutes and ensure near around-the-clock availability by leveraging business continuity and resiliency services from IBM. We helped the Austrian government determine the potential business impact of a three-day outage (which was assessed at $US332,813) and then implemented the right resiliency plan to help avoid an outage.