1 ABAG Infrastructure Interdependencies Workshop May 2 nd, 2012 Vice Chair, BARCfirst Financial...

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ABAG Infrastructure Interdependencies Workshop May 2nd, 2012

Vice Chair, BARCfirst

Financial Sector InterdependenciesFrom All Angles

Internal Dependencies

• People• Technologies• Facilities• Communications Capabilities• Etc.

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All of which are interrelated and can be dependencies of each other.

External Dependencies

• Power• Transportation• Critical Vendors/Suppliers including:

– Other Financial Institutions– The Federal Reserve– Armored Car Carriers– Facilities Management Companies– Etc.

• Public Sector Authorities

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Most Important: Your Dependencies on Financial Institutions

If one or more banks is impacted by a regional crisis…• Will your business be able to perform financial

transactions and, if not, how will that impact your business?

• Will you be able to do personal financial transactions or even get cash out of an ATM?

• Do you have “options?”

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Oversight to Ensure Preparedness• Federal Financial Institutions Examination Council (FFIEC)• Comptroller of the Currency (OCC)• Other Financial Sector oversight, where applicable, like the

Securities Exchange Commission.• Recognized national and/or international standards like

NFPA 1600, BS 25999, and the emerging “giant in the room,” the International Standards Organization’s ISO 22301 standard on Business Continuity.

• Banks may have an additional obligation to certify against one of those standards under the Private Sector Preparedness Accreditation and Certification Program (PS-Prep).

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Not just Financial Sector – Part of National, State, Regional, and Local Partnerships

Financial Sector Coalitions

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How effective have preparedness efforts proven to be? In California….

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California Wild Fires and Earthquakes (Almost annually.)

http://latimesblogs.latimes.com/lanow/wildfires/

www.consrv.ca.gov/cgs/geologic_hazards/earthquakes/Pages/index.aspx

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H1N1 Pandemic Scare

www.nytimes.com/2011/02/08/health/08glob.html?_r=1&n=Top/Reference/Times%20Topics/Subjects/I/Influenza/Swine%20Influenza?ref=swineinfluenza

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San Bruno Gas Line Explosion

http://heraldsun.com/view/full_story/11287132/article-Explosion-highlights-lax-pipeline-rules

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BART/Mehserle Trial and Many “Occupy” Events Causing Civil

http://articles.nydailynews.com/2010-07-09/news/27069536_1_subway-platform-johannes-mehserle-oscar-grant

Disruption

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The Financial Sector seems to have come through all of that pretty well due to

preparedness.

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BarryCardoza@BarryCardoza.com