9 th ACG Cross-Training Seminar Precautionary Measures during Outbreak of SARS (2003) Hong Kong Securities Clearing Company Limited 5 th July 2007 – Kuala Lumpur

2 Agenda 1.Planning and Preparation 2.Mitigating Measures - Financial Service Sector - Clearing House 3.Crisis Management 4.Reported SARS Case 5.Reassemble of Normal Operations

3 1. Planning and Preparation (1) Identify possible scenarios which could impact the clearing house operations Risk Analysis -assess threats and risks Activation of contingency plan Stage 1Stage 2 Planning and Preparation StageCrisis Management Stage [only in crisis situation which impact clearing house operations] Mitigating measures

4 1. Planning and Preparation (2) Possible scenarios Accessibility of Workplace  Office areas / data centres being contaminated External Problems  Staff of participants being infected  Office areas of participants being contaminated Staffing Issues  Critical / majority of staff being infected Identified the possible risk scenarios as illustrated below:-

5 1. Planning and Preparation (3) Accessibility of Workplace  Unable to access the office areas / data centres to maintain normal operations Externally  Participants cannot continue their operations  Participants unable to meet their obligations Staffing Issues  Insufficient staff to support the clearing and settlement operations Risk Analysis Which might lead to ….. Disruption to the Clearing and Settlement services, due to

6 2. Mitigating Measures Mitigating measures Aim To ensure the security market continue to operate as normal as possible by minimizing the potential impact.

7 2. Mitigating Measures - Financial Service Sector (1) Mitigating measures Contingency Planning of Regulators To maintain critical operations Split team arrangement Split team arrangement Rotate staff to work from home as a 3rd level backup Rotate staff to work from home as a 3rd level backup

8 2. Mitigating Measures - Financial Service Sector (2) Mitigating measures Contingency Planning of Regulators (Cont’d) To ensure staff’s health awareness Issue comprehensive guidelines to staff Issue comprehensive guidelines to staff Advise staff of the appropriate measures to be taken with reference to the health advice provided by the Department of Health Advise staff of the appropriate measures to be taken with reference to the health advice provided by the Department of Health

9 2. Mitigating Measures - Financial Service Sector (3) Mitigating measures Market Awareness To ensure market practitioners could continue their operations Request for comprehensive business continuity plans Request for comprehensive business continuity plans Issue circulars to draw their attention to the health advice from Department of Health Issue circulars to draw their attention to the health advice from Department of Health Discuss with selective practitioners to ensure they have alternative measures, if needed Discuss with selective practitioners to ensure they have alternative measures, if needed

10 2. Mitigating Measures - Clearing House (1) Mitigating measures Externally To ensure clearing participants exercised all necessary preventive measures Issue circulars to remind them to take precautionary measures Issue circulars to remind them to take precautionary measures Request them to inform the clearing house, in case any of their staff confirmed having contracted SARS Request them to inform the clearing house, in case any of their staff confirmed having contracted SARS Encourage them to request their staff to put on masks when they access the premises of the clearing houses Encourage them to request their staff to put on masks when they access the premises of the clearing houses Inform them of the clearing houses’ precautionary measure Inform them of the clearing houses’ precautionary measure

11 2. Mitigating Measures - Clearing House (2) Mitigating measures Staff Issues To ensure staff awareness Establish SARS reporting guidelines, in case of any staff or their family members show symptoms of suspected SARS Establish SARS reporting guidelines, in case of any staff or their family members show symptoms of suspected SARS Provide up-to-date SARS information to staff such as latest medical treatment, precaution advice from Department of Health Provide up-to-date SARS information to staff such as latest medical treatment, precaution advice from Department of Health Arrange with community medical service alliance for fast diagnosis of suspected SARS symptoms Arrange with community medical service alliance for fast diagnosis of suspected SARS symptoms

12 2. Mitigating Measures - Clearing House (3) Mitigating measures Staff Issues (cont’d) To ensure staff wellness Provide sufficient masks and gloves for all staff Provide sufficient masks and gloves for all staff Arranged extra periodic cleanings in all offices areas Arranged extra periodic cleanings in all offices areas Minimize physical contacts of staff from different sites Minimize physical contacts of staff from different sites Avoid face-to-face communications, conference call should be arranged, if needed Avoid face-to-face communications, conference call should be arranged, if needed Reduce the level of overseas traveling, especially for SARS-infected countries Reduce the level of overseas traveling, especially for SARS-infected countries

13 2. Mitigating Measures - Clearing House (4) Mitigating measures Accessibility of Workplace To ensure all clearing systems operated as normal Reference to the existing Business Continuity Plan, hot back-up sites and stand-by facilities located at different districts for the clearing systems Reference to the existing Business Continuity Plan, hot back-up sites and stand-by facilities located at different districts for the clearing systems Implement a 3-shift arrangement for IT staff, for round- the clock system operations Implement a 3-shift arrangement for IT staff, for round- the clock system operations

14 2. Mitigating Measures - Clearing House (5) Mitigating measures Accessibility of Workplace (Cont’d) To maintain the clearing house operations and services Split the mission critical functions into multiple locations to prevent “single-point” failure, i.e. Teams A and B, with Team B working at Secondary Sites Split the mission critical functions into multiple locations to prevent “single-point” failure, i.e. Teams A and B, with Team B working at Secondary Sites Rotate staff to work at home Rotate staff to work at home Engage a cleaning company for the necessary cleansing and disinfection operations in case of SARS problem Engage a cleaning company for the necessary cleansing and disinfection operations in case of SARS problem

15 2. Mitigating Measures - Clearing House (6) Mitigating measures Challenges : to achieve “Split Teams” within a short period of time Identify suitable office location for the split teams Identify suitable office location for the split teams Assemble sufficient equipment Assemble sufficient equipment Identify the tasks to be split between Teams A and B Identify the tasks to be split between Teams A and B Re-arrange the operation flow with Teams A and B Re-arrange the operation flow with Teams A and B Re-establish the communication channels internally and externally Re-establish the communication channels internally and externally

16 3. Crisis Management (1) Activation of contingency plan In case a confirmed SARS case in Team A at Primary Site Evacuate all staff from the office as soon as possible Evacuate all staff from the office as soon as possible Arrange medical checks for staff Arrange medical checks for staff Arrange close contact to infected staff to attend a SARS screening at the designated clinics Arrange close contact to infected staff to attend a SARS screening at the designated clinics Staff might need to stay at home for 7 to 10 days Staff might need to stay at home for 7 to 10 days

17 3. Crisis Management (2) Activation of contingency plan In case a confirmed SARS case in Team A at Primary Site (cont’d) Arrange office cleansing and disinfecting of the contaminated site after evaluation, which will be closed for 48 hours Arrange office cleansing and disinfecting of the contaminated site after evaluation, which will be closed for 48 hours Inform building management of the affected office Inform building management of the affected office Move Team B from Secondary Site to the Back-up site to continue operation Move Team B from Secondary Site to the Back-up site to continue operation Notify Participants of alternative arrangement with activation of Back-up site Notify Participants of alternative arrangement with activation of Back-up site Move Team B back to the Primary Site when its reopened Move Team B back to the Primary Site when its reopened

18 3. Crisis Management (3) Activation of contingency plan Communication during Contingency Staff who suspect infection of SARS reports to supervisor Department Head reports to HR of potential case Activate contingency plan Activate contingency plan Communicate with Regulators Participants’ Communications: Issue broadcast messages regarding the alternative arrangement, if applicable Handle Hotline enquires

19 4. Reported SARS Case Activation of contingency plan A family member of a staff confirmed SARS infection Action Taken – no activation of contingency plan since it only affected staff from supporting functions Arrange comprehensive cleansing and disinfecting of the entire floor of the contaminated office Arrange comprehensive cleansing and disinfecting of the entire floor of the contaminated office Issue notice to all staff Issue notice to all staff Require all related staff to wear masks at all times in the office Require all related staff to wear masks at all times in the office Suspend cross-office visit of the related staff temporarily, Suspend cross-office visit of the related staff temporarily, where ever possible where ever possible

20 5. Reassemble of Normal Operations Upon removing Hong Kong from the Infected Area List by WHO on 23 June 2003 The split team arrangement re-assembled within one week

21 Thank You