fstcs 2008 annual conference on the innovative edge: successful strategies for financial services...
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© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC FSTC Annual Conference 2008: Business Resiliency: a Global Challenge Kathryn Wakeman Global Head of Resiliency Risk ManagementTRANSCRIPT
FSTC’s2008 Annual Conference
On the Innovative Edge:Successful Strategies for
Financial Services
Industry Navigators
The Financial Services Technology
Consortium
Empowering the Industry Through Innovative Ideas
FSTC’s2008 Annual Conference
On the Innovative Edge:Successful Strategies for
Financial Services
Industry Navigators
Business Resiliency – A Global Challenge
Sponsored by:
© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
FSTC Annual Conference 2008:
Business Resiliency: a Global Challenge
Kathryn WakemanKathryn WakemanGlobal Head of Resiliency Risk ManagementGlobal Head of Resiliency Risk Management
4© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Senior management focus
Business engagement
Third parties Global Regulations
The main challenges
5© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Argentina Buenos Aires Australia Adelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney Austria Vienna Bahamas Nassau Bahrain Manama Belgium Brussels Brazil Rio de J aneiroSão Paulo Canada Calgary Montreal Toronto Vancouver Cayman Islands Georgetown Channel Islands J ersey Chile Santiago China Beijing Hong Kong Shanghai Shenzhen Tianjin Colombia BogotáCzech Republic Prague Egypt Cairo France Paris Germany Berlin Frankfurt Munich Greece Piraeus India Mumbai New Delhi Indonesia J akarta Ireland Dublin Israel Tel Aviv Italy Milan Rome J apanOsaka Tokyo Lebanon Beirut Luxembourg Malaysia Kuala Lumpur Labuan Selangor Mexico Mexico City Monterrey The Netherlands Amsterdam New Zealand Auckland Nigeria Lagos Norway OsloPakistan Karachi Peru Lima Philippines Manila Poland Warsaw Portugal Lisbon Russian Federation Moscow Singapore South Africa J ohannesburg South Korea Seoul Spain Bilboa Madrid Sri LankaColombo Sweden Stockholm Switzerland Geneva Zurich Taiwan Pan Chiao City Taipei Thailand Bangkok Turkey Istanbul United Kingdom Bournemouth Edinburgh Essex Glasgow Isle of ManLondon Uzbekistan Tashkent Venezuela Caracas Vietnam Hanoi Ho Chi Minh City Argentina Buenos Aires Australia Adelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney AustriaVienna Bahamas Nassau Bahrain Manama Belgium Brussels Brazil Rio de J aneiro São Paulo Canada Calgary Montreal Toronto Vancouver Cayman Islands Georgetown Channel Islands J ersey ChileSantiago China Beijing Hong Kong Shanghai Shenzhen Tianjin Colombia Bogotá Czech Republic Prague Egypt Cairo France Paris Germany Berlin Frankfurt Munich Greece Piraeus India MumbaiNew Delhi Indonesia J akarta Ireland Dublin Israel Tel Aviv Italy Milan Rome J apan Osaka Tokyo Lebanon Beirut Luxembourg Malaysia Kuala Lumpur Labuan Selangor Mexico Mexico CityMonterrey The Netherlands Amsterdam New Zealand Auckland Nigeria Lagos Norway Oslo Pakistan Karachi Peru Lima Philippines Manila Poland Warsaw Portugal Lisbon Russian FederationMoscow Singapore South Africa J ohannesburg South Korea Seoul Spain Bilboa Madrid Sri Lanka Colombo Sweden Stockholm Switzerland Geneva Zurich Taiwan Pan Chiao City Taipei ThailandBangkok Turkey Istanbul United Kingdom Bournemouth Edinburgh Essex Glasgow Isle of Man London Uzbekistan Tashkent Venezuela Caracas Vietnam Hanoi Ho Chi Minh City Argentina BuenosAires Australia Adelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney Austria Vienna Bahamas Nassau Bahrain Manama Belgium Brussels Brazil Rio de J aneiro São Paulo CanadaCalgary Montreal Toronto Vancouver Cayman Islands Georgetown Channel Islands J ersey Chile Santiago China Beijing Hong Kong Shanghai Shenzhen Tianjin Colombia Bogotá Czech RepublicPrague Egypt Cairo France Paris Germany Berlin Frankfurt Munich Greece Piraeus India Mumbai New Delhi Indonesia J akarta Ireland Dublin Israel Tel Aviv Italy Milan Rome J apan Osaka TokyoLebanon Beirut Luxembourg Malaysia Kuala Lumpur Labuan Selangor Mexico Mexico City Monterrey The Netherlands Amsterdam New Zealand Auckland Nigeria Lagos Norway Oslo PakistanKarachi Peru Lima Philippines Manila Poland Warsaw Portugal Lisbon Russian Federation Moscow Singapore South Africa J ohannesburg South Korea Seoul Spain Bilboa Madrid Sri Lanka ColomboSweden Stockholm Switzerland Geneva Zurich Taiwan Pan Chiao City Taipei Thailand Bangkok Turkey Istanbul United Kingdom Bournemouth Edinburgh Essex Glasgow Isle of Man LondonUzbekistan Tashkent Venezuela Caracas Vietnam Hanoi Ho Chi Minh City Argentina Buenos Aires Australia Adelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney Austria ViennaBahamas Nassau Bahrain Manama Belgium Brussels Brazil Rio de J aneiro São Paulo Canada Calgary Montreal Toronto Vancouver Cayman Islands Georgetown Channel Islands J ersey Chile SantiagoChina Beijing Hong Kong Shanghai Shenzhen Tianjin Colombia Bogotá Czech Republic Prague Egypt Cairo France Paris Germany Berlin Frankfurt Munich Greece Piraeus India Mumbai New DelhiIndonesia J akarta Ireland Dublin Israel Tel Aviv Italy Milan Rome Japan Osaka Tokyo Lebanon Beirut Luxembourg Malaysia Kuala Lumpur Labuan Selangor Mexico Mexico City Monterrey TheNetherlands Amsterdam New Zealand Auckland Nigeria Lagos Norway Oslo Pakistan Karachi Peru Lima Philippines Manila Poland Warsaw Portugal Lisbon Russian Federation Moscow SingaporeSouth Africa J ohannesburg South Korea Seoul Spain Bilboa Madrid Sri Lanka Colombo Sweden Stockholm Switzerland Geneva Zurich Taiwan Pan Chiao City Taipei Thailand Bangkok TurkeyIstanbul United Kingdom Bournemouth Edinburgh Essex Glasgow Isle of Man London Uzbekistan Tashkent Venezuela Caracas Vietnam Hanoi Ho Chi Minh City Argentina Buenos Aires AustraliaAdelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney Austria Vienna Bahamas Nassau Bahrain Manama Belgium Brussels Brazil Rio de J aneiro São Paulo Canada CalgaryMontreal Toronto Vancouver Cayman Islands Georgetown Channel Islands J ersey Chile Santiago China Beijing Hong Kong Shanghai Shenzhen Tianjin Colombia Bogotá Czech Republic Prague EgyptCairo France Paris Germany Berlin Frankfurt Munich Greece Piraeus India Mumbai New Delhi Indonesia J akarta Ireland Dublin Israel Tel Aviv Italy Milan Rome J apan Osaka Tokyo Lebanon BeirutLuxembourg Malaysia Kuala Lumpur Labuan Selangor Mexico Mexico City Monterrey The Netherlands Amsterdam New Zealand Auckland Nigeria Lagos Norway Oslo Pakistan Karachi Peru LimaPhilippines Manila Poland Warsaw Portugal Lisbon Russian Federation Moscow Singapore South Africa J ohannesburg South Korea Seoul Spain Bilboa Madrid Sri Lanka Colombo SwedenStockholm Switzerland Geneva Zurich Taiwan Pan Chiao City Taipei Thailand Bangkok Turkey Istanbul United Kingdom Bournemouth Edinburgh Essex Glasgow Isle of Man London UzbekistanTashkent Venezuela Caracas Vietnam Hanoi Ho Chi Minh City Argentina Buenos Aires Australia Adelaide Brisbane Buderim Canberra Gold Coast Melbourne Perth Sydney Austria Vienna Bahamas
JPMorgan Chase – global firm, global challenges
6© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Global firm, global challenges – Katrina 2005
7© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Global firm, global challenges – Mumbai 2006
8© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Global firm, global challenges – UK 2007
9© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Global firm, global challenges – San Diego 2007
10© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Global firm, global challenges – NY Steampipe ‘07
11© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Senior management focus
12© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Senior management focus - incidents
13© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Meaningful Management InformationTimely and focused incident reportingTesting and reporting results in plain English
Senior management focus - testing
14© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Senior management focus – calendarised program
•Weekly senior management meeting to review incidents and resiliency•Weekly resiliency risk leadership team meeting•Monthly review of resiliency metrics•Semi-annual reports by each line of business•Annual report to Audit Committee
15© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Holding the business accountable
Absolute clarity over ownership
Regular, calendarised reporting
Strong risk management and governance
Decent compliance metrics
16© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Holding the business accountable – regular reporting
Line of Business Semi-Annual ReportInitiatives Compliance Status
•Previously reported initiatives•Status•Original due date•Revised due date
New initiativesStatusDue date
Accomplishments/Program Improvements in last 6 months
Compliance Metrics (BIAs, Plans, Tests) BIAs Updated - % Business Plans Updated - % Business Plans Tested - %Technology Plans Updated - %Technology Plans Tested - %Comments on Gaps-
Significant Test Issues Issue Status
Regulatory Compliance / Internal Audit Issues Issue Status
Plan Activations Background Lessons Learned
Key Risks/Issues Pandemic Preparedness UpdateTop 10 risks/issues
RiskImpact to LOBMitigation
PlanningTestingCritical Third Parties•Open Issues
•Status•Due Date
17© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Meaningful Management Information
Holding the business accountable: meaningful metrics
18© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
How resilient (ie tough) are we ?
Where are we exposed ?
How can we improve ?
How do we compare with our peers ?
Are we spending the right amount?
Holding the business accountable: meaningful metrics
19© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Set tolerance levels
Flag exceptions, show trends
Track issues from tests
Benchmark against peers, industry standards
Measure business impact
Report number of outstanding audit and regulatory actions
Holding the business accountable: meaningful metrics
20© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Essential to understand third party resilience
Test with financial infrastructure
Understand capabilities of utility providers
Need for common certification tool
Third parties
21© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Examples of regulations/industry standards
Interagency White Paper
FFIEC handbook
Basel II
BS25999
NASD rulesNYSE Rule 446
OCC 2001-47
FSMA (UK)
NFPA 1600
FSA BCM Guide
SEC rules
HKMA Policy Manual
22© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
Senior Management focus
Business engagement
Third parties Global Regulations
Recap
23© 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
QUESTIONS ?
FSTC’s2008 Annual Conference
On the Innovative Edge:Successful Strategies for
Financial Services
Industry Navigators
Afternoon BreakSponsored by: