1. Disaster Planning The Ten Commandments of Success June 2014

2. Speaker Steven Sachs Executive Vice President Director of Real Estate and Hotel Practice Willis NA steve.sachs@willis.com 410-584-8935 1

3. Session Objectives  Practical Hands On Information For You to Utilize in Developing Catastrophe Planning  Catastrophe Planning Follows Basic Risk Management Process 2

4. What to Take Away  Understand the wide-ranging impact of a successful disaster response program  Recognize the critical elements of a disaster recovery plan 3

5. Expect the Unexpected 4

6. Preparation Preparation of Emergency / Catastrophe Plan  Risk Manager is Facilitator  Put Together a Team - Use All Resources Operations (field) Disaster Tested Manager Insurer / Broker / Consultant  Model Approach 5

7. Preparation Preparation of Emergency / Catastrophe Plan  Local Customization  Quality Control Procedures  Approval  Audit  Use of Technology  Operating Units Versus Corporate Headquarters 6

8. Risk Management Process Identify Types of Catastrophic Situations That Could Affect Your Operations  Casualties (Fire, Natural Disaster)  Use your own engineering reports / loss history  EQ / Flood / Windstorm analysis by insurer / broker / consultant  Cyber Attacks 7

9. Risk Management Process  Terrorism / Extortion  Third Party Criminal Acts  Interdependencies (or where in the food chain are you?) Have you named all of your key suppliers and/or recipients? ID secondary suppliers and/or recipients 8

10. Risk Management Process Attempt to Measure Impact to Company's Assets and/or Earnings  Liability (Life Safety)  Business Impact (maintain/improve market share)  Goodwill / Image  Lowered Productivity (e.g., Employee Downtime)  Value of Key Employees 9

11. Critical Success Factors  Quick Response Team Resources  Headquarters Operations  Share Plan With Your Underwriters Align coverages and expectations  Manage Corporate expectations 10

12. Preparation Key Items To Be Included In Plan Specialty Emergency Contractors Communications Utilities Security Transportation Engineering Services Hot site for IT 11 General Contractors Roofers Plumber / HVAC Sprinkler Contractors Glass / Glazers Cyber Resources Trauma Counseling

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16. Pre-event Hours Establish Home Office Responsibilities Establish Primary and Alternate Field Headquarters Food Clothing Staff 15 Phone Book Cash Security (Police/National Guard) Headquarters

17. Pre-Event Hours Conduct Pre-Event Conference Calls When Possible (Hurricane and Flood) Establish Pre-Event Checklist to Include: - Food- Materials/Supplies - Clothing- Contractors Committed - Accounting Cost Codes 16

18. Summary Facilitate – Bring Resources Together Develop Model Plan Establish Quality Control Procedures Responsibility / Authority – Use Technology if Possible Distribute Audit 17

19. Post-Event Actions  Implement Emergency / Catastrophe Plan  Quick Response Team  Establish Objectives  Media / Public Relations  Psychological Support Services for Employees  Coordination with Insurers 18

20. The Ten Commandments 1.Preparation, Preparation, Preparation leads to “360 degree credibility” 2.Follow the Risk Management Process 3.Make sure that you have coverage and no surprises (Policy Workshops) 4.The Risk Manager should be a facilitator and identify the best resources inside and outside of the company 5.There must be Quality Control which includes: Practice Required Updates Audits 19

21. The Ten Commandments 6.Where you are exposed to Natural Catastrophes, pre-commitment of key contractors and resources is critical. 7.Establish a Quick Response Team is critical 8.Establish Home Office responsibilities 9.Conduct Pre-event Conference Calls when possible (commencing 7 days out on named storms) 10.Share the plan with your underwriters 20

22. Questions? 21