1.  2006 Montague Technology Management, Inc. All Rights Reserved Case Studies in Business Continuity: What NOT to Do May 26, 2006 Kathleen A. Lucey kalucey@montaguetm.com tel: +1-516-676-9234 cell: 516-384-6437

2.  2006 Montague Technology Management, Inc. All Rights Reserved IT Recovery Coordination Business Recovery Coordination INTERRUPTION MANAGEMENT MODEL Business Continuity Teams Information Technology Recovery Teams Interruption Management Team Executive Oversight Team Media Relations Team Command Center Support Team Business Continuity Coordination Initial Interruption Management Recovery Management Employee Support EMT Government Liaison Emergency Funding Physical Security Transportation, Communications Site Repair and Restoration HAZMAT Admin. Services Damage Assessment Emergency Logistics Site Relocation and Recreation Site Repair or Relocate  2006 Montague Technology Management, Inc. All rights reserved. Purchasing Insurance Liaison

3.  2006 Montague Technology Management, Inc. All Rights Reserved Where are MOST of the Continuity Challenges ?? CONTINUITY ISSUES Catastrophic Interruptions Minor Interruptions Everyday Blips Process Dysfunctions SOLUTIONS Continuity/Recovery Availability Reliability Engineering Core Business Value Chain Processes

4.  2006 Montague Technology Management, Inc. All Rights Reserved Case #1  Project completed 3 months earlier to install diesel generator for supplemental power.  Installation certified by in-house engineering inspector.  Friday afternoon, 3 p.m.: loss of power to data center.  Power does NOT flow from diesel generator. Loss of Street Power and Emergency Power

5.  2006 Montague Technology Management, Inc. All Rights Reserved building wall To/From Street Transfer Switch Diesel Generator To Data Center Main Cable Case #1

6.  2006 Montague Technology Management, Inc. All Rights Reserved Case #1 Contributing factors:  Cost-cutting policy requires accepting low bid.  Insufficient cable ordered by contractor for job.  Inspection performed by unqualified staff member.  No follow-up maintenance or inspection.  No redundant main cable in design.

7.  2006 Montague Technology Management, Inc. All Rights Reserved CASE #2  Water pipe in building ruptures at 10 a.m. on Wednesday.  Water begins to flow through multiple floors.  No announcement from Building Management or Company.  Rumors circulate; staff members of financial institution evacuate to street.  Unauthorized executive dismisses staff for the day.  Business continuity plan not activated.  Nearly a full day’s productivity is lost: estimated at >$400,000.  Re-entry to building allowed 2 hours later. Premature Dismissal of Staff

8.  2006 Montague Technology Management, Inc. All Rights Reserved Case #2 Contributing factors:  Business Continuity Plan not activated.  Crisis Management Team not engaged.  Excessive focus on worst-case scenario.  Little awareness of individual default response on evacuation.  Poor communication procedures.

9.  2006 Montague Technology Management, Inc. All Rights Reserved Case #3  Upgrade of system software fails at 11 p.m.; system unavailable.  Backup not performed just prior to upgrade attempt.  Yesterday’s backup is empty, as are all others looked at.  One system backup found from 6 months prior; system restored to this level.  Manual entry of missing data necessary for prior 6 months.  Construction project disruption and legal liability. Loss of Integrated Management System and Data

10.  2006 Montague Technology Management, Inc. All Rights Reserved Case #3 Contributing factors:  Outsourced IT staff cannot be evaluated within firm.  Management insistence on minimizing costs for IT.  Dangerous system upgrade procedure or lack thereof.  No monitoring of backup completion status: backup was not performed unless system was quiesced with no users.  Luck saved the day: 6 months ago the system was down when the backup was run.

11.  2006 Montague Technology Management, Inc. All Rights Reserved Questions ?? Kathleen Lucey Montague Technology Management Inc. kalucey@montaguetm.com +1-516-676-9234