BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Building Resiliency Between Business and IT

Dave Komendat Chief Security Officer The Boeing Company

BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

What We Do Today Boeing Overview § Design, assemble and support commercial jetliners §  Boeing 7-series family of airplanes lead the industry §  Commercial Aviation Services (CAS) offers broad range of services to passenger and

freight carriers

§ Design, assemble and support defense systems §  World’s largest designer and manufacturer of military transports, tankers, fighters and

helicopters §  Support Systems provides services to government customers worldwide

§ Design and assemble satellites and launch vehicles §  World’s largest provider of commercial and military satellites; largest NASA contractor

§  Integrate large-scale systems; develop networking technology and network-centric solutions

§ Provide financing solutions focused on customer requirements § Develop advanced systems and technology to meet future customer needs

Connecting and protecting people globally

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Partnering worldwide for mutual growth and prosperity

§ More than 170,000 Boeing employees in 50 states and 70 countries

§ Customers and customer support in 150 countries §  Total revenue in 2011: $68.7 billion

§  70 percent of commercial airplane revenue historically from customers outside the United States

§ Manufacturing, service and technology partnerships with companies around the world §  Contracts with 22,000 suppliers and partners globally

§ Research, design and technology-development centers and programs in multiple countries

What We Are Protecting Boeing Overview

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How We Are Organized Boeing Overview

Corporate functions: Business Development and Strategy Communications Engineering, Operations and Technology Finance/Shared Services Group/Boeing Capital Corp. Human Resources/Administration International Law Office of Internal Governance Government Relations

World-class performance

Integrated Defense Systems

Commercial Airplanes

Delivering products and services to commercial and defense customers

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Business Continuity Mission

Provide business continuity services, standards and tools that mitigate risk, enabling quick recoverability of critical operations before, during and after a disruptive event.

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Business Continuity “One Plan” Approach

Loss of Building

Loss of Personnel

Loss of Systems Loss of Suppliers

Natural Disasters (Floods, Hurricanes, Earthquakes, etc.)

Influenza, Pandemic (Avian Flu, H1N1)

Terrorist Threats, Cyber Attacks, Outages (Production systems, Communications systems, Financial Systems, etc.)

Suppliers (Single Source Suppliers, Supply Chain disruptions, JIT Inventory)

Reducing risk of potential threats & vulnerabilities

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Business Continuity Capabilities §  52 Emergency Operations Center §  1 Enterprise Emergency Management Center §  3 Regional Dispatch Centers §  400 Firefighters §  56 Emergency Response Apparatus (Engines, Aid Cars, etc) §  1000 Uniformed Security Personnel §  15 Medical Clinics §  16 Emergency Preparedness Full Time Coordinators §  VDRT Program §  Mutual Aid Agreements §  Tools (Dialogic, DENS, Beacon, Threat Navigator) §  Strong Relationships with Local Jurisdictions, FEMA §  24/7 IT Help Desk §  24/7 IT Major Incident Management (MIM) §  24/7 IT Preparedness Team Criticality Assessments §  Data Center Modernization §  24/7 IT Crisis Response Center (CRC)

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Flooding in Thailand

Mesa Power Outage

Huntsville Tornados

Auburn Power Outage

Japan Earthquake /Tsunami

Civil Unrest in Egypt

2011 Events Impact to Boeing

2011 Australia Flooding

• 3 days of production • 5 business days

• Employee Evacuation

• Employees / Customers • Radiation at US ports • Employee Relocation • 2 prime Boeing suppliers (BCA/BDS) in affected areas

• 1 Engines sub-tier supplier affected

• Back in 4 business days

• Loss 1 day of production • Due to city substation fire

Benefits §  Proactive, targeted training protecting people

property, assets and reputation §  Ensuring critical programs, processes and

systems recover quickly after an event §  Integrated Planning and practiced recovery

reduces the length of the interruption §  Minimizes financial impact to Boeing in the

event of a significant disruption

Hurricane Irene US East Coast Earthquake

• Travelers in Area

Shared Services Group | Security and Fire Protection

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Business Continuity Governance Framework

Strong relationships foster collaboration and integration

The Boeing Company Executive Council (EXCO)

Boeing Business Continuity Council (All Business Units and Functions)

Business Continuity Integration Leadership Team Executive Sponsors

IT Preparedness

Planning

Business Continuity Program Manager

Integration Working Group Chair

CIO CSO

IT Major Incident Management

Emergency Preparedness

Planning

Business Preparedness

Planning

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Business Continuity Response to Recovery

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Duration

Sev

erity

Response Phase Business Resumption

Transitional Zone

Emergency Response Operations Non-Emergency Operations

Recovery Phase

Business Recovery Operations

Event

Business continuity is achieved through emergency, business and IT preparedness, response, and recovery.

Security & Fire Protection Life Safety

Site Services Business Continuity

Prep

ared

ness

Pla

nnin

g

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Business Continuity Integration Goals/Benefits

§ Enhances our ability to avoid adverse impacts to: –  Production Capability –  Economic Health –  Corporate Image –  Contractual Commitments –  Safety / Legal / Regulatory –  Competitive Position

§ Conscious investment - right thing to do to ensure long term competitive advantage

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Business Continuity Integration Journey

Collaboration

Compelling Business Reason

•  Risk Management •  Business Enabler •  Integration to reduce cost •  Integration to speed recovery

Common Mission Sharing

Processes, Systems, Tools

Sharing Best Practices Accountability

Preparedness planning Asset protection Recovery time objectives Common Crisis Communications Training

Gov. Council Compliance policy Mgmt. system Integration Councils Performance scorecard Metrics

FEMA/NIMS PS Preparedness Industry alignment Common IM system Site risk assessments

Site Level Integration Integrated data Web EOC Situation reports Threat Navigator LDRPS BC Maturity Model

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Business Continuity Integration Lessons Learned

§  A common incident management structure that SME’s know and understand to manage events

§  Common processes, tools, systems, and information sharing to enable a comprehensive risk picture (situation reports)

§  Prioritization and sequencing of what to stand up first

§  Standard Crisis Communication training to manage media events and inform key stakeholders

§  Sharing best practices and after action reviews

Shared Services Group | Security and Fire Protection

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Business Continuity Our Progress

IT Disaster Preparedness Launch

Integrated planning and testing improves resiliency

Emergency Preparedness Launch

Business Preparedness Launch

Business Impact Analysis 99 Critical Processes

Initial Business Continuity Maturity Model Ent. Composite 2.70 No Integration Strategy in place

Current Business Continuity Maturity Model Ent. Composite 5.31 Integrated strategy, planning, testing, and reporting

Collaboration and Integration

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Summary § Most disasters happen geographically requiring and

integrated approach

§ Collaboration and integration reduce required resources and decrease time to recovery

§ Common program management disciplines reduce confusion and increase efficiency

§ Integrated planning, practicing and testing is like buying additional insurance

Protecting critical operations to ensure recoverability