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Managing Risk - Achieving Security and Resiliency with IBM
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© 2010 IBM Corporation
Managing RiskAchieving Security and Resiliency with IBM
Theodor StanescuDennis van HeesApril, 28th 2010
2 © 2010 IBM Corporation
Agenda
Why does business resilience matter?
How to identify risks to your business
How can IBM help?
Why IBM?
3 © 2010 IBM Corporation
71% Percent of CIOs that rank risk one of their top 3 business priorities
54% Growth in annual storage shipments to meet explosion of data
500+ Percent increase seen last year in Web links that can harm your company
4 © 2010 IBM Corporation
Resilience optimization is balancing the financial impact of riskand the solution cost.
Resilience
… rapidly adapt and respond to risks, as well as opportunities, in order to maintain
continuous business operations, be a more trusted partner, and enable growth.
(IBM BCRS Organization)
Optimization (general)
“… an act, process, ormethodology of making something
(as a design, system, or decision) as fully perfect, functional, or
effective as possible”
(Merriam – Webster Online Dictionary)
Resilience optimization (RO)
“An approach to helping a business find, attain and sustain an appropriate balance between the costs of providing resilience and the business value of that resilience”
(IBM Business Continuity and Resiliency Organization)
5 © 2010 IBM Corporation
And … the world is riskier than it used to be.
Changing environment
Expanding risk exposures
Increased global and regional
Interdependencies
Supply chain disruption
More complex regulations
Changing industry and regulatory standards
Geographic dispersal requirements
Varying regulations per country
Heightened impact of business disruption
Greater financial implications of downtime
Brand vulnerabilities
Data integrity requirements
Impact of coping with the financial turmoil
Loss of critical personnel
Loss of key knowledge
Reduction in attention to significance of risk
Reduction in testing recovery plans
Disaster recovery and business continuance can be one of the top IT spending priorities for many businesses.
6 © 2010 IBM Corporation
While reducing costs is essential in today's economic climate,it’s also essential to not unknowingly take on too much risk.
Smart is: “The right risk at the right price” Understanding the potential loss associated with the level of risk being assumed Understanding the costs associated with the mitigation solutions employed to deal with the selected
level of risk Selecting the mitigation solutions consistent with the level of potential loss Selecting the optimum architecture for the mitigation solutions Optimized resilience can help reduce costs to the business
Potential risk cost elements
Loss avoidance High risk capital
allocation position Maintain credit rating Fine and
penalty avoidance Maintain
customer confidence Maintain social
responsibility Cost avoidance
Tot
al c
osts
ass
ocia
ted
with
ris
k an
d m
itiga
tion
Optimum resilience risk
balance
Resilience optimization
Lower Level of resilience
Costs resulting from
risk loss events
Costs of allmitigation solutionsemployed
Higher
Higher
Types of mitigation solutions
IT resilience architecture
IT service delivery topology
People and processes
Work place strategy
Data and information protection
Regulatory compliance
7 © 2010 IBM Corporation
Business resiliency can provide near-term cost efficiencies as well as strong, long-term returns on investment.
The right business resiliency strategy can help you:
Mitigate risk
– Avoid the costs of downtime, brand damage and market share lost to competitors, and reduce the financial impact from business disruptions
Protect brand and revenue
– Properly assessing the threats to your IT infrastructure, their potential business impact and your tolerance for risk can help you plan a realistic strategy
Protect capital
– Analyzing cost tradeoffs can help you avoid unnecessary investment
Reduce costs
– Resiliency solutions can help protect you from failed restores and lost data
Improve service
– You can better align a resilient infrastructure to the needs of your businessto maintain service level agreements based on your tolerance for risk
8 © 2010 IBM Corporation
Not all risks are created equal…
Frequency ofoccurrences
per year
Fre
qu
en
tIn
fre
qu
en
t
Consequences (single occurrence loss) in dollars per occurrenceLow High
Viruses
WormsDisk failures
System availability failures
Pandemics
Natural disasters
Application outages
Data corruption
Network problems
Building fires
Terrorism/civil unrest
Data driven
Event driven
Business driven
Regulatory compliance
Workplace inaccessibility
Failure to meet industry standards
Regional power failures
Governance
Source: IBM
Data growthLong term preservation
Mergers and acquisitions
New products
Marketing campaigns
Audits
9 © 2010 IBM Corporation
Once risks are understood, an appropriate resilience strategycan be developed.
Accept
Accept the risk
An exposure is deemed acceptable to
the business
Mitigate
Mitigate the risk
Strategy required and implemented to
reduce risks
Transfer
Transfer the risk
When it is more cost-effective to transfer
to another entity (such as insurance,
leaseback or outsource)
10 © 2010 IBM Corporation
We can help you realize significant financial impacts and improvements in recovery service-level performance.
Reactive
Helps identify, quantify, and prioritize business and IT risks, then develop strategies and implement designs to address those risks
Helps eliminate the impact of disruptive events with IT andwork area recovery
Helps balance workloads and reduce application, data and system loss
Advisory
Proactive Responsive
IBM Resiliency Consulting
Services
IBM Resiliency Consulting
Services
IBM Managed Resiliency Services
IBM Managed Resiliency Services
IBM Infrastructure
Recovery Services
IBM Infrastructure
Recovery Services
11 © 2010 IBM Corporation
IBM Business Continuity and Resiliency Services provide end-to-end, comprehensive solutions to help keep your business operating.
IBM ManagedResiliencyServices
IBM Infrastructure Recovery Services
IBM ResiliencyConsultingServices
LEV
EL
OF
EN
GA
GE
ME
NT
SERVICES CONTINUUM
ADVISE RECOVER MANAGE
LEVEL OF R
ESILIE
NCY
12 © 2010 IBM Corporation
We help globally deliver resilience solutions through resiliency centers and delivery and consulting experts around the globe.
A unique infrastructure and skill set designed for flexibility and responsiveness in a disaster situation, from simple to complex environments
Support for over 12,000 clients with over 15,000 contracts
Our depth and breadth of resources include:
A business model based onrisk and syndication ofresource at a machine level
Options for dedicated orlimited shared resource
Successful support for over750 client recoveries.
13 © 2010 IBM Corporation
IBM’s Global Delivery model includes the following elements to meet our clients’ requirements and mitigate risks:
Flexible delivery alternatives in each location
Multisite solution spanning multiple time zones, allowing “follow the sun” without a night shift:
– 24x7 support for mission-critical applications and enabling infrastructure
– 24x7 testing for applications that need to quickly move into production
– Work-day overlap between countries
Multisite solution in different economic zones, helping mitigate the effects of:
– Wage inflation
– Currency risk
– Political and economic uncertainty
Parallel and faster ramp-up, delivering savings more quickly
Access to the world’s largest experienced services skill pool, with extensive industry and technology expertise, in 173 countries worldwide
Access to the world’s largest business consulting and research organization
Multilanguage support with native speakers across the globe (English, French, Dutch, Portuguese, Spanish, Chinese, etc.)
14 © 2010 IBM Corporation
IBM’s global network of business process outsourcing and transformation delivery centers meets clients’ diverse, growing needs
Edmonton
Calgary
Tulsa
Lenexa
Dallas
Houston
Costa RicaBogotá
Buenos Aires
Hortolandia
NashvilleAtlanta
GreenvilleDurhamLexington
Endicott
St. John
MontrealMarkham
Toronto
Greenock
Rotterdam
Newcastle upon Tyne
Dublin
ParisBratislava
Lisbon
Budapest
Athens
Stockholm
Krakow
Chandigarh
Calcutta
Pune
Delhi/Mumbai
Bangalore
Manila
Brisbane
Shanghai
OkinawaTokyo
Dalian
Finance and administration
Procurement
Human resources
Customer relationship management
Industry-specific
In plan
15 © 2010 IBM Corporation
IBM delivers application services seamlessly through delivery centers leveraging IBM’s infrastructure, processes, tools and skilled resources
Edmonton
Guadalajara
Mexico City
San Jose
Caracas
Lima
Asuncion
Montevideo
Buenos AiresMartinez
Capetown
Johannesburg
TorontoMadrid
Barcelona
Eastern European sitesVilnius (Lithuania)Bucharest (Romania)Prague (Czech Republic)Szekesfehervar (Hungary)
India sitesBangalorePuneKolkataChennaiHyderabadDelhi/Gurgaon
China sitesDalianShanghaiShenzhen
Perth
Adelaide
BallaratMelbourne
Brisbane
Sydney
Canberra
Ho Chi Minh
Metro Manila
Tokyo
Brazil sitesHortolandiaSao PauloSao SalvadoreRio de JaneiroNova Lima
Strategic
Regional
Application Services Global Delivery Center (GDC)
Calgary
Vancouver
Hanoi
16 © 2010 IBM Corporation
IBM delivers high-quality infrastructure services to our clients from four hub countries - chosen because they optimize cost, skills, consistency of methodology and cross-functional delivery support
Argentina sitesMartinezCatalinasUrquiza
Brazil sitesHortolandiaSao PauloRio de Janeiro
India sitesBangalorePuneDelhiGurgaonHyderabad
China sitesShanghaiDalianShenzhen
17 © 2010 IBM Corporation
Each region also supports a network of global and regional infrastructure delivery sites for the flexibility that clients expect
North America sites
Atlanta (2)AshburnBoulder ChicagoColumbusDallas LexingtonLos AngelesMiami
CanadaCalgaryTorontoMontreal
Sterling Forest
Gaithersburg
Mexico City
Bogotá
Santiago
Caracas
Hortolandia
Sao Paulo
Montevideo
Buenos Aires
Brno
Dublin
LondonParis
Madrid
Lisbon
Turin
Szekesfehervar
Copenhagen
Johannesburg
DubaiHong Kong
Taipei
ShanghaiTokyo
Seoul
Singapore
BallaratMelbourne
Canberra
AucklandWellington
Sydney
Europe sitesMechelen/NossegemMontpelierMilan (2)EhningenFrankfurtKista/SolnaWinterthurPortsmouth/The NestWarwick
India sitesBangaloreChennaiHyderabad
Japan sitesHagaSagminoKawasakiMakuhariNankoMitakaMihama
Shenzhen
Service Delivery Center
e-business Hosting Services (e-bHS)
Business Continuity andRecovery Services (BCRS)
EMEA Regional Global Delivery Center (GDC)
Global Delivery Center
NewarkPoughkeepsie RaleighRochesterSan JoseSecaucusSouthburySterlingSt. Louis
United States
18 © 2010 IBM Corporation
Business resilience from IBM: helping you reduce risk andoptimize opportunities.
A golf association protects over 500 gigabytes of mission-critical data every day via cloud computing using our business continuity and resiliency services; this includes over four million membership records and more than 150,000 daily e-mails.
A leading UK-based metals trading exchange worked with IBM to design and deploy a fully dedicated, supplemental trading facility capable of 100 percent business continuity as a work area recovery site, saving the firm millions of dollars in trading losses and downtime costs in the event of a disaster.
19 © 2010 IBM Corporation
Business resilience from IBM: helping you reduce risk andoptimize opportunities. (continued)
A European healthcare company was able to cut recoverytimes down to 10-20 minutes and ensure near around-the-clock availability by leveraging business continuity and resiliency services from IBM.
We helped the Austrian government determine the potential business impact of a three-day outage (which was assessed at $US332,813) and then implemented the right resiliency plan to help avoid an outage.
20 © 2010 IBM Corporation
Why IBM: We leverage extensive, global experience.
Our unparalleled experience includes:
More than 40 years of business continuityand disaster recovery experience.
More than a decade of successful customer recoveries and crisis management experience.
More than 10,000 disaster recovery clients.
More than 3,400 information protectionclients with over 42 petabytes of data under management.
21 © 2010 IBM Corporation
Why IBM: We provide broad solution capabilities.
We can address your unique needs through:
Our global resiliency centers, which are designed for multivendor environments,and provide support for more than 200 hardware and software vendors, including HP, Sun Microsystems, Cisco and ourown IBM products.
Proven business process and technology expertise to help you design and implement the right solution for your business.
22 © 2010 IBM Corporation
Thank you for your time today.
For more information, visit:
ibm.com/services/continuity
Contact:
Dennis van HEES, Business Development Executive
E-mail: [email protected]
Theodor STANESCU, Strategy and Architecture Services Manager
E-mail: [email protected]
23 © 2010 IBM Corporation
Trademarks and notes
IBM Corporation 2010
IBM, the IBM logo, ibm.com, System i and System p are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml
Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at: http://www.ibm.com/legal/copytrade.shtml#section-special
Other company, product and service names may be trademarks or service marks of others.
References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.
BUP03005-USEN-03