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DISASTER RECOVERY RISKS

LESSONS LEARNED

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DISCLAIMER

The information contained in presentation represents generic industry information and does not express the views of Hancock Bank Holding Company (HBHC) or any of its subsidiaries

HBHC does not give legal adviceAny quotes, narratives or excerpts of

information used with permission

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Hurricane Katrina

Massive storm – YES. Massive damage to several states – YES. Massive problems for financial institutions –

YES. Massive changes to Disaster Recovery plans

– YES. Hurricanes aren’t the only disasters that can

hit you – tornadoes, fires, flooding, and the list goes on and on – natural disasters as well as threats of terrorism

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Disaster Recovery Plan

Just because you are in Trust / Wealth Management / Investments, do not think that your plan is a stand alone plan and you will not be affected.

We learned what really is the number one and most important step that should be in your Disaster Recovery plan – both pre-disaster and after.

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MOST IMPORTANT STEPS

PeopleCommunicationLocationAccess to Essential FunctionsCoordination with support areas Testing

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C O N T A C T L I S T S

Have in Disaster Plan every type of contact information that you can gather

Phone numbers for as many people in everyone’s family that you can – locally & away

Ensure that your contact lists in your plan are always current

Provide this list to all employees, whether considered key personnel or not

Make sure everyone understands that Disaster Recovery is a TEAM effort & everyone is included – these lists should always be with them or in a place they can access anytime

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E M P L O Y E E S

Locate, locate, locate each & everyone you can as fast as you can

Ensure contact is made dailyEnsure everyone is kept in the “loop” –

essential personnel or notHave a location for your people to gatherEnsure that everyone knows where it is

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E S S E N T I A L P E R S O N N E L

Ensure that there are back ups for all “key” personnel identified in your plan

Ensure that cross training has been completed for all “Critical” positions, including Supervisors as well as in Compliance

Ensure that during testing you include all of these identified in your plan

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C O M M U N I C A T I O N

Steps to implement communication immediately

Deployment to another location and a SET time frame

Vendor 24/7 contactsTransportation – Type, Fuel, AccessMail service – Post Office, UPS, Fed Ex,

etc.

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L O C A T I O N

Assess the personnel you have available to work

IMMEDIATELY implement your compliance disaster recovery plan

Ask for help from everyone to ensure ALL areas are monitored & policy & procedures are followed

DOCUMENT any & all exceptions, whatever the reason

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C R I T I C A L F U N C T I O N S

Assess what functions you deem most critical to operate in a disaster situation

Personnel essential to these functionsLocation and steps to implement this part

of your planEssential equipment, systems, supplies

and files needed for these functions

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C O O R D I N A T I O N

Other areas within your organization, vendors and outside suppliers

Contact names, numbers and addresses for all above

IT coordination whether service bureau or out-sourced or internal

Coordination of Disaster Recovery Plans Copies of contracts or at least an except from

contract

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T E S T I N G

Identify back ups for all “key” personnel Cross training completed for all “Critical”

positions & functions Include everyone identified in your plan Set dates for testing & follow up on all

exceptions Be included in disaster recovery testing for all

areas within your organization, vendors and outside suppliers

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C O M P L I A N C E

Don’t lose sight of: Due Diligence, Policy & Procedures Internal Controls, Confidentiality Reconcilements, Suspense Accounts Passwords, Dual Custody Asset Protection, Daily Administrative Duties Settlements, Investments, Distributions Your Role on Accounts, Customer Requests

Fiduciary Duty comes First

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C O M P L I A N C E

Make sure whoever is responsible for Fiduciary Compliance has a good back up

If not responsible for Disaster Recovery plans, ensure you are part of the process for Wealth Management, all areas in your organization as well as vendors

Network with others in your area Use resources available – anyone you can

possibly think of

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C O M P L I A N C E

Excerpts from HBHC (used with permission): FUEL:  Fuel plan to ensure that the lights and computers stay on as

well as associates have fuel to get to work - designed to be self-sufficient for 10-days. 

TECHNOLOGY SYSTEMS:  Mainframe "host" and servers to include access to Email and VPN into the system from the Internet.

EMERGENCY NOTIFICATION:  Alert24 notification system. PHONES:  The (service provider) phones programmed with a set of

pre-determined contact numbers.  Pre-issuance of some of the phones as primary communication devices for key associates.

KEY OFFICES: Identified key offices to support connectivity to the network that have manual transfer switches so we can support them with generator power without disrupting the (local electric company) power feed.

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R E S O U R C E S

FFIEC Publication LESSONS LEARNED FROM HURRICANE KATRINA: Preparing Your Institution for a Catastrophic Event

ABA Task Force Policy on Emergency Preparedness

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R E S O U R C E S

Emergency Agencies American Red Cross

(202) 303-4498 NOAA/National Weather Service

(301) 713-0622 The Salvation Army

(202) 289-4001 Department of Homeland Security

(202) 282-8000 Federal Emergency Management Agency

(800) 621-FEMA or (800) 621-3362

Federal Regulatory Agencies Federal Financial Institutions Examination Council Federal Deposit Insurance Corporation

(877) ASK-FDIC or (877) 275-3342 Board of Governors of the Federal Reserve System

(202) 452-3000 National Credit Union Administration

(703) 518-6300 Office of the Comptroller of the Currency

(202) 874-4700 Office of Thrift Supervision

(800) 958-0655 or (202) 906-6000

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R E S O U R C E S

State Regulatory Agencies Alabama State Banking Department

(334) 242-3452 Alaska Department of Community and Economic Development

(907)465-2521 Arizona Department of Financial Institutions

(602) 255-4421 Arkansas State Bank Department

(501) 324-9019 California Department of Financial Institutions

(415) 263-8555 Colorado Division of Banking

(303) 894-7575 Connecticut Department of Banking

(860) 240-8299 DC Department of Insurance, Securities, and Banking

(202) 727-8000 Delaware Office of the State Bank Commissioner

(302) 739-4235 Federated States of Micronesia Banking Board

(691) 320-2015

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R E S O U R C E S

Florida Office of Financial Regulation(850) 410-9800

Georgia Department of Banking and Finance(770) 986-1633

Guam Department of Revenue and Taxation(671) 475-1817

Hawaii Division of Financial Institutions(808) 586-2820

Idaho Department of Finance(208) 332-8000

Illinois Dept. of Financial Regulation - Division of Banking(217) 785-2900

Indiana Department of Financial Institutions(317) 232-3955

Iowa Division of Banking(515) 281-4014

Kansas Office of the State Bank Commissioner(785) 296-2266

Kentucky Office of Financial Institutions(502) 573-3390

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R E S O U R C E S

Louisiana Office of Financial Institutions(225) 925-4660

Maine Bureau of Financial Institutions(207) 624-8570

Mariana Islands Department of Commerce(670) 664-3008

Maryland Commissioner of Financial Regulation (410) 230-6101

Massachusetts Division of Banks(617) 956-1500

Michigan Office of Financial & Insurance Services(517) 335-3167

Minnesota Department of Commerce(651) 296-2135

Mississippi Department of Banking and Consumer Finance(601) 359-1031

Missouri Division of Finance(573) 751-3242

Montana Division of Banking & Financial Institutions(406) 841-2920

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R E S O U R C E S

Nebraska Department of Banking & Finance(402) 471-2171

Nevada Financial Institutions Division(702) 486-4120

New Hampshire Banking Department(603) 271-3561

New Jersey Department of Banking and Insurance(609) 292-3420

New Mexico Financial Institutions Division(505) 827-7103

New York State Banking Department(212) 709-3501

North Carolina Banking Commission(919) 733-3016

North Dakota Department of Financial Institutions(701) 328-9933

Ohio Division of Financial Institutions(614) 728-8400

Oklahoma State Banking Department(405) 521-2782

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R E S O U R C E S

Oregon Division of Finance and Corporate Securities(503) 378-4140

Pennsylvania Department of Banking(717) 787-6991

Puerto Rico Bureau of Financial Institutions(787) 723-8004

Rhode Island Department of Business Regulation(401) 222-2405

South Carolina Department of Consumer Affairs(803) 779-0850

South Dakota Division of Banking(605) 773-3421

Tennessee Department of Financial Institutions(615) 741-2236

Texas Department of Banking(512) 475-1300

Utah Department of Financial Institutions(801) 538-8830

Vermont Department of Banking and Insurance(802) 828-3307

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R E S O U R C E S

Virgin Islands Division of Banking and Insurance(340) 774-7166

Virginia Bureau of Financial Institutions(804) 371-9657

Washington Department of Financial Institutions(360) 902-8704

West Virginia Division of Banking(304) 558-2294

Wisconsin Department of Financial Institutions(608) 261-9555

Wyoming Division of Banking(307) 777-7797

Conference of State Bank Supervisors(202) 296-2840

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R E S O U R C E S

Printable Format of Emergency Contact Information - PDF 

Neighborhood (Local)Contact Name____________________________________________________Work_________________________Home_____________________________Address________________________________________________________City,ST_________________________________________________________

Out-of-StateContact Name____________________________________________________Work_________________________Home_____________________________Address________________________________________________________City,ST_________________________________________________________

 Emergency Notification Who do we notify if something happens to you?Contact Name____________________________________________________Work_________________________Home_____________________________Address________________________________________________________City,ST_________________________________________________________