1. FSTC’s 2008 Annual Conference On the Innovative Edge: Successful Strategies for Financial Services Industry Navigators The Financial Services Technology Consortium Empowering the Industry Through Innovative Ideas

2. FSTC’s 2008 Annual Conference On the Innovative Edge: Successful Strategies for Financial Services Industry Navigators Business Resiliency – A Global Challenge Sponsored by:

3. © 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 Management

4. 3 © 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. 4 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Contents Note: Locations are those identified by firm annual report JPMorgan Chase – global firm, global challenges

6. 5 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Global firm, global challenges – Katrina 2005

7. 6 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Global firm, global challenges – Mumbai 2006

8. 7 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Global firm, global challenges – UK 2007

9. 8 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Global firm, global challenges – San Diego 2007

10. 9 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Global firm, global challenges – NY Steampipe ‘07

11. 10 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Senior management focus

12. 11 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Senior management focus - incidents

13. 12 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Meaningful Management Information Timely and focused incident reporting Testing and reporting results in plain English Senior management focus - testing

14. 13 © 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. 14 © 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. 15 © 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 Report InitiativesCompliance Status Previously reported initiatives Status Original due date Revised due date  New initiatives  Status  Due 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/IssuesPandemic Preparedness Update  Top 10 risks/issues  Risk  Impact to LOB  Mitigation  Planning  Testing  Critical Third Parties Open Issues Status Due Date

17. 16 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC Meaningful Management Information Holding the business accountable: meaningful metrics

18. 17 © 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. 18 © 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. 19 © 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. 20 © 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 rules NYSE Rule 446 OCC 2001-47 FSMA (UK) NFPA 1600 FSA BCM Guide SEC rules HKMA Policy Manual

22. 21 © 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. 22 © 2007 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC QUESTIONS ?

24. FSTC’s 2008 Annual Conference On the Innovative Edge: Successful Strategies for Financial Services Industry Navigators Afternoon Break Sponsored by: