1. Wipro Consulting Vinay N Disley Implementation Challenges in BCM

2. Index >Presentation Agenda >Components of BCM >Implementation Challenges in BCM >Conclusion separately

3. Presentation Agenda “To highlight key BCM Implementation Challenges that organizations face while drawing up a BCM framework and its subsequent Roll-out as part of their BCM Journey”

4. BCM Components Exercising, Maintenance & Audit Understanding your Business Building & Embedding BCM Culture BCM Program Management Develop & Implement BCM Response Business Continuity Strategies 1 2 34 5 Source: Business Continuity Institute

5. Challenges in BCM Implementation

6. 1# Lack of Understanding Source: Business Continuity Institute Only 42% of the respondents have correctly answered: “ BCM is protecting the core running of the business if an unexpected event occurs.” No references to Reputation Risk or failure of Suppliers Telecom failures & backup of IT Systems also referred as BCM 32% of respondents still perceive Disaster Recovery as BCM

7. 2# Expanding Threat List Source: Chartered Management Institute BCM Research Report, 2007 2005-2007 Disruption table reflects, no threat can be ignored or discounted. Sharp rise in incidents due to extreme weather from 9% in 2006 to 28% in 2007 Threats like utility outages and industrial actions which were not identified separately till 2004, occupy 28% share in 2007 In 2007 alone, BCP was invoked for all the identified threats

8. 3# Changing Risk Profile Source: Business Continuity Institute 28% of respondents perceive terrorist threat as the biggest threat to the business in the forthcoming years. Top three threats are external threats, where organizations have little control over the prevention and management High reliance on governmental guidance and support to provide an effective response against these external threats IT Failure is the first internal threat that tops the list Telecom failure are perceived to be a low risk area

9. 4# Mapping of Right BCM Drivers Source: Business Continuity Institute Identifying “PUSH” and “PULL” factors for your organization is critical to the success of BCM Implementation. Regulatory compliance “PUSH” factor is the third most important factor identified by respondents Protecting employees, retaining customers and maximizing productivity are the critical “PULL” factors identified by respondents

10. 5# Stakeholder Identification & participation Source: Chartered Management Institute BCM Research Report, 2006 Only 36% of respondents confirmed involvement of business functions in the creation of the BCP. Human Resources function rose from fourth in 2005 to top of the table in 2006 IT functions still plays greater role on BCP front in most of the organizations External parties like critical vendors and suppliers are still to find a separate place in the creation phase of BCP

11. 6# Having the Right Ownership Source: Business Continuity Institute Business Continuity Management is no longer seen as an extension of IT with only 28% of IT personnel taking responsibility for Business Continuity. Overall, 60% of the organization have BCM ownership with Senior Management and Board Members 27% of the organizations have personnel dedicated to BCM Close to 30% of the organization have BCM ownership assigned to middle-level managers or operational staff

12. 7# Capability Evaluation Source: Chartered Management Institute BCM Research Report, 2007 34% of respondents refer to some sort of best practice guidelines to align, validate and benchmark their BCM processes. Legislation and Regulations have come out to be strong drivers for BCM Capability evaluation BCM Capability evaluation has been identified as critical activity by most of the respondents

13. 8# BCM Communication Source: Chartered Management Institute BCM Research Report, 2006 Only 1 in 10 organizations are communicating their BCPs to suppliers and just 19 per cent to customers. BCPs continue to be primarily reported to senior management and board teams Little communication to investing community on BCP front 22% of the organization regularly communicate to Regulators on BCP front

14. 9# Budgetary Support Source: Chartered Management Institute BCM Research Report, 2007 23 per cent of respondents who have a BCP indicate that there is no budget to back it up. Managing Directors are most likely to hold budget for BCM Some organizations have also emerged with dedicated BCM Manager with budgetary powers

15. 10# Testing Source: Chartered Management Institute BCM Research Report, 2007 37% of respondents reported that they do not rehearse their BCPs at all. Thus There is a danger that many of these plans will not work when most needed. % of Managers whose organization rehearse their BCP once or twice a year have not changed considerably in last few years Customers who are the second biggest driver for BCM, have failed to demand strong evidence of BCP rehearsal from their suppliers 80% of those who have rehearsed had come across shortcomings in their BCPs

16. Other Common Challenges >Changes in Business Environment (New Services/M&A/ People transition/New Operating Geographies etc) >Building BCM Culture (Value Add to my Business/People Element /Additional Roles & Responsibilities/Not part of Core Business/Low probability) >Continuous Review, Validation & Audits (Management effort & Commitment/ Updating Documents/ Communicating new changes/ Full time effort/ Budgetary constraint on dedicated resources) >Changing Regulatory Landscape (New Legislations & Regulatory Requirements [HIPAA/SOX/Basel II/Civil Contingencies Act]/ Dedicated and Skilled team to meet compliance requirements/ Strong and Continuous Audit Support) >Skilled Manpower (Shortage of Domain Experts/Budgetary Constraints)

17. Conclusion Project Initiation PolicyOrganisationResourcesScope Business Impact Analysis Risk Assessment Recovery Strategy Create Planning Organisation Continuity ProcessRisk ReductionDesign Procedures Testing Change MgtEducationTestingReview Process One Time On Going BCM Framework Management Ownership & Support Corporate Governance Global Best Practices Strong BCM Culture

18. “An excellent strategy without execution will result in failure. And, perfect execution of a bad strategy will still result in failure.." Thank You

19. 19 Advisory Information Risk Mgmnt BCP/ DRP Policy Framework Application Audits ISO 27001 Assurance Implementation Services Awareness & Training Balanced Score Card Information Asset Profiling CISO Services Identity Management Single Sign On/ Directory Solns User Provisioning WSS & PKI Design Evaluate Implement Sustenance, Post Production Technical Risk Assessment Vulnerability Assessment Penetration Testing Forensic Services Application Testing Technology Security Solutions Compliance Basel II AML Sarbanes Oxley SSE-CMM ISO 15048 Data Protection/ Privacy Wipro’s Security Governance Offerings (Horizontal) Wipro’s Service Offerings