Critical Infrastructures Working Together In A New World

Critical Infrastructures: Working Together In A New World Morgan Stanley 9/11 Lessons Learned Steve Ruegnitz, Managing Director, Institutional Enterprise Applications, Security and Telecommunications

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 1991 Persian Gulf War 1993 World Trade Center Bombing Y 2 K

Pre-Crash Overhead View WTC Complex Citi Asset Management Merrill Lynch VESEY ST. 12 7 AXP 11 5 6 ST. 1 10 3 Lehman Brothers 9 2 8 4 T. CHURCH S 1 WTC 2 WTC Marriott Hotel 4 WTC 5 WTC 6 WTC 7 WTC 90 West St. 1 WFC 2 WFC 3 WFC 4 WFC ST WE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. TO CHAMBERS ST. EXIT Morgan Stanley Escape Route

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 WINDOWS ON THE WORLD AON CANTOR FITZGERALD FRED ALGER MANAGEMENT 55 employees CARR FUTURES AMERICAN BUREAU OF SHIPPING 93 141 employees OHRENSTEIN & BROWN 91 employees NETWORK PLUS 87 46 employees 190 employees KEEFE, BRUYETTE & WOODS 96 645 employees WASHINGTON GROUP INTL. 1700 employees 177 employees FIDUCIARY TRUST COMPANY INTL. 1000 employees MARSH & MCLENNAN 103 1100 employees SANDLER O'NEILL & PARTNERS 70 employees 171 employees NY STATE DEPT. OF TAXATION & FINANCE 222 employees HARRIS BEACH 2000 employees 59 SIDLEY AUSTIN BROWN & WOOD 600 employees 285 employees MORGAN STANLEY PORT AUTHORITY 113 employees EURO BROKERS / MAXCOR FINANCIAL GROUP FUJI BANK 74 2778 employees 625 employees BRIDGE INFORMATION SYSTEMS 56 ICAP DAI-ICHI KANGYO BANK FIREMAN'S FUND 46 43 190 employees WACHOVIA / FIRST UNION 300 employees 750 employees 48 employees 300 employees LEHMAN BROTHERS 618 employees THACHER PROFFITT & WOOD KEMPER INSURANCE 36 employees FRENKEL & CO. OPPENHEIMER FUNDS EMPIRE BLUE CROSS & BLUE SHIELD ICAP 1914 employees BANK OF AMERICA 400 employees 598 employees SUN MICROSYSTEMS 10 1 WTC 2 WTC 300 employees SCOR-US 25 750 employees 120 employees KEY More than 100 people missing 11 to 100 people missing 10 or fewer people missing All employees accounted for Areas of impact Morgan Stanley offices

Chronology Of Events 9: 15 am Senior Management relocates to command facilities in 750 7 th Ave Establish communications Begin process of locating our people Employee 9: 10 am emergency Lost contact number aired on to 2 WTC broadcast media IIG & IM Senior Management at 1585 7: 30 am 8: 00 am 8: 30 am 8: 48 am 1 WTC hit by AA#11 8: 49 am 2 WTC Evacuation begins Contingency Plan implemented 9: 03 am 2 WTC hit by UA#175 9: 00 am 9: 30 am 10: 00 am 10: 30 am 9: 59 am 10: 28 am Last MS employee 2 WTC 1 WTC leaves 2 WTC collapses 9: 20 am Varick St. back-up systems activated Harborside starts purchasing key business equipment 11: 00 am 11: 30 am First survivor arrives at command facility (750 7 th Ave)

Locating Our People Day 11 -Sep 12 -Sep 13 -Sep 14 -Sep Event Emergency 800# aired on broadcast media Discover & Van Kampen Call Centers First employee call received at call center MS Online Call Center 2, 500 phone calls received Out-bound calls to employees and family members begin Time Employee Update 11: 00 am 12: 25 pm 1: 25 pm 7: 30 pm 2, 528 unaccounted Continue to receive in-bound employee calls Out-bound calling campaign continues Employee ATM activities reviewed Home telephone numbers matched against Discover Card telephone numbers 300 -400 unaccounted Door-to-door search for missing employees commences 30 -40 unaccounted 6 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 12 th to October 5 th; 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

er Relocating Our People Hu dso n Riv 1585/1221/1633/750 NEW JERSEY Bronx Great Neck Pa ss a ic R ive r Morristown Jersey City Newark Int'l. Airport Elizabeth Manhattan Varick St. Queens Bay Harborside Brooklyn John F. Kennedy Other Locations Int'l. Airport Brooklyn. Staten Island N New York, NY 0 0 3 Mi 3 Km

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 WT 1 was hit · Command 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