Critical Infrastructures: Working Together In A New World

Steve Ruegnitz, Managing Director, Institutional Enterprise Applications, Security and Telecommunications

Morgan Stanley 9/11 Lessons Learned

Agenda Three Events Shaped Our Contingency Plan Pre-Crash Overhead View Our People At The World Trade Center WTC Tenants Chronology Of Events Locating Our People Caring For Our Employees Relocating Our People Lessons Learned – Be Prepared Lessons Learned -- Logistics Lessons Learned -- The Human Factor Going Forward Small Enterprise Suggestions

Three Events Shaped Our Contingency Plan

1991Persian Gulf War

1993World Trade

Center Bombing

Y2K

Pre-Crash Overhead View

1. 1 WTC2. 2 WTC3. Marriott Hotel4. 4 WTC5. 5 WTC6. 6 WTC7. 7 WTC8. 90 West St.9. 1 WFC10. 2 WFC11. 3 WFC12. 4 WFC

WTC Complex Morgan StanleyEscape Route

1

23 4

56

7

89

10

1112

Merrill LynchAXP

LehmanBrothers

Citi Asset Management

TO CHAMBERS ST. EXIT

WE

ST

ST

.

CH

UR

CH

ST

.

VESEY ST.

Our People At The World Trade Center

3,528 total employees 2,834 in IIG (82% of IIG non-field staff) 694 in IM (17% of IM staff)

31 employees treated for injuries

6 missing

WTC Tenants

110

103

96

93

87

74

59

56

46

43

25

10

AON 1100 employees

SANDLER O'NEILL & PARTNERS 177 employees

MORGAN STANLEY 2778 employees

SUN MICROSYSTEMS 300 employees

OPPENHEIMER FUNDS 598 employees

FRENKEL & CO.

THACHER PROFFITT & WOOD 300 employees

FIREMAN'S FUND 190 employees

ICAP 750 employees

BRIDGE INFORMATION SYSTEMS

WACHOVIA / FIRST UNION 48 employees

SCOR-US 120 employees

FIDUCIARY TRUST COMPANY INTL. 645 employees

NY STATE DEPT. OF TAXATION & FINANCE 222 employees

FUJI BANK 625 employees

EURO BROKERS / MAXCOR FINANCIALGROUP

285 employees

HARRIS BEACH 113 employees

KEEFE, BRUYETTE & WOODS 171 employees

WASHINGTON GROUP INTL. 190 employees

AMERICAN BUREAU OF SHIPPING 16 employees

KEYMore than 100 people missing11 to 100 people missing10 or fewer people missingAll employees accounted forAreas of impactMorgan Stanley offices1 WTC 2 WTC

WINDOWS ON THE WORLD 70 employees

CANTOR FITZGERALD 1000 employees

MARSH & MCLENNAN 1700 employees

FRED ALGER MANAGEMENT 55 employees

CARR FUTURES 141 employees

NETWORK PLUS 46 employees

OHRENSTEIN & BROWN 91 employees

PORT AUTHORITY 2000 employees

SIDLEY AUSTIN BROWN & WOOD 600 employees

DAI-ICHI KANGYO BANK 300 employees

LEHMAN BROTHERS 618 employees

KEMPER INSURANCE 36 employees

EMPIRE BLUE CROSS& BLUE SHIELD

1914 employees

ICAP 750 employees

BANK OF AMERICA 400 employees

Chronology Of Events

7:30am 8:00am 8:30am 9:00am 9:30am 10:00am 10:30am 11:00am 11:30am

8:48am1 WTC hit by AA#11

8:49am2 WTC Evacuation begins

Contingency Plan implemented

9:03am2 WTC hit by

UA#175

9:20amVarick St. back-up systems activatedHarborside starts purchasing key

business equipment

9:59am2 WTC

collapses

10:28am1 WTC

collapses

11:30amFirst survivor arrives at command facility

(750 7th Ave)

9:50amLast MS employee

leaves 2 WTC

IIG & IMSenior Management at 1585

9:10amLost contact

to 2 WTC

9:15amSenior Management relocates to command facilities in 750 7 th

AveEstablish communicationsBegin process of locating our people Employee

emergency number aired on broadcast media

Locating Our PeopleDay Event Time Employee Update

12-Sep Continue to receive in-bound employee callsOut-bound calling campaign continuesEmployee ATM activities reviewedHome telephone numbers matched against Discover

Card telephone numbers 300-400 unaccounted

13-Sep Door-to-door search for missing employees commences 30-40 unaccounted

14-Sep 6 unaccounted

11-Sep Emergency 800# aired on broadcast mediaDiscover & Van Kampen Call Centers

First employee call received at call centerMS Online Call Center

2,500 phone calls receivedOut-bound calls to employees and family members

begin

11:00 am

12:25 pm

1:25 pm7:30 pm

2,528 unaccounted

Caring For Our Employees

Employee Assistance Program began work immediately part of the long-term employee benefit plan resources expanded to accommodate increased call volume group sessions held in all major locations

Full-time counselors were on-site at nine of our major locations in the New York area from September 12th to October 5th; currently, supplied on an “as-needed” basis

Additional counselors dispatched to emergency call centers Results:

1,476 employees received phone counseling via EAP 6,577 employees received group counseling via EAP 307 employees received one-on-one counseling via EAP

Relocating Our People

N

0 3 Mi

0 3 Km

New York, NY

Jersey City

Newark

ElizabethBay Brooklyn

Staten Island

Queens

Bronx

John F. Kennedy Int'l. Airport

GreatNeck

.

NewarkInt'l. Airport

NEWJERSEY

Manhattan

Morristown

Other Locations

1585/1221/1633/750

Harborside

Varick St.

Brooklyn

Hud

son

Riv

er

Pas

saic

Riv

er

Lessons Learned – Be Prepared

We were prepared -- With an active, practiced disaster plan

Diversity of locations

We have a high capacity resilient infrastructure

HA everything

Capacity is your friend

For network, diverse carriers, ISP’s and routing

Telephone is the #1 priority service -- The public network down town was

literally blown away, but our “on net” infrastructure kept our internal

service intact

Lessons Learned -- Logistics

Every second counts -- We didn’t vacillate with respect to evacuation after WT1

was hit

Command and control – Within minutes a senior management command center

was manned and our operations command centers in Mid-Town and London were

in disaster mode

First order of business was welfare of our people

A central clearing house was set up to receive, track and prioritize recovery related

requests (also valuable source of inventory tally for insurance reimbursement)

Lessons Learned -- The Human Factor

Across the board, our people were compassionate, heroic and

professional

There is no substitute for leadership

We work with quality vendors and they proved their mettle

All firms in the Financial District put aside differences and pulled

together to rescue our industry

Going Forward

Continue with our existing high capacity resilient infrastructure strategy that worked

so well during the 9/11 disaster

Regional dispersion of staff and technology

More focus on BCP and, in particular, as a result of terrorism, including cyber terror

Implement a firm-wide incident response (based upon IT Sec’s STAR model)

Any low hanging loose ends in the security technical infrastructure are being nailed

down (password quality, internal cross-group access, internal malicious code

scanning, encryption, etc)

Small Enterprise Suggestions

Fractional bandwidth from global carriers (e.g., Equant)

Avaya IP phone

Heightened awareness of terrorism alerts and attack modes (FS/ISAC --

http://www.fsisac.com/)

Work out a BCP support mechanism in your respective industries – when it

comes to large scale disasters or terrorism, your competitors are on your side