Business Continuity Plan
Johnson Rice & Company L.L.C.
Business Continuity Plan
Disclosure to Clients
September 10, 2004
Johnson Rice & Company L.L.C. ("Johnson Rice") is committed to safeguarding the interests of our clients and customers in the event of an emergency or significant business disruption. This Business Continuity Plan Disclosure (the "BCP") summarizes Johnson Rice's effort to mitigate risks inherent with unforeseen business interruptions. The Firm's comprehensive business continuity strategy is designed to enable us to meet our existing obligations to our clients and customers even in the event of an emergency or significant business disruption.
The BCP is designed to address significant business disruptions of varying scope including, but not limited to:
- Johnson Rice--only business disruption
- Disruption to a single building in which Johnson Rice business is conducted
- Disruption to a business district in which Johnson Rice business is conducted
- City-wide business disruption
- Regional disruption
If after a significant business disruption, our clients cannot contact us as they usually do via phone or e-mail, clients should access our website at www.jrco.com for up-to-date contact information.
Communication with Our Employees in the Event of a Disruption
The safety and well being of our employees is a vital concern. In the event of an emergency or significant business disruption, the Firm will communicate with its employees in several different ways. We use a combination of general broadcast and direct-targeted outreach. General information such as office closures and operating hours will be posted on the Firm's internal e-mail system and external websites. Senior managers will be contacted directly via telephone and/or e-mail.
Redundancy of Mission Critical Information Technology Systems
Johnson Rice has one information technology processing and backup site that will provide the redundancy required to protect the firm's books and records, balance sheet and capital, and provide business continuity and client protection. The recovery capability for certain of the firm's mission critical processing capabilities is achieved through the use of a specialized vendor facility that provides disaster recovery services to many large corporations. Recovery times for mission critical systems range between real time recovery and 4 to 12 hours.
Back-Up Trading, Sales and Operations Site
Johnson Rice maintains a backup trading and operations center located in Dallas, Texas. In the event that we are unable to access our primary facility, it may be necessary to relocate certain personnel to the backup site. The functionality of the backup facility is routinely tested by sales, trading and operations personnel
Disclaimer
The Firm's comprehensive business continuity strategy is designed to enable us to meet our existing obligations to our clients and customers even in the event of an emergency or significant business disruption; however it is not infallible. The plan is designed to work in many different emergency situations; but these events are, by their nature, unpredictable and it is impossible to anticipate every scenario that could cause a business disruption. Furthermore, although we are confident in our own preparedness, Johnson Rice has no control over the various entities that we must rely upon in the event of an emergency. Our BCP is tested periodically to ensure readiness; yet such tests may not be able to replicate the actual conditions we experience in a real emergency. This BCP is subject to change without notice. In the event that this BCP is modified, customers may obtain an updated hard copy BCP upon request. The information contained in the disclosure is provided by Johnson Rice for informational purposes only. Nothing contained herein shall be construed to amend, supplement or otherwise modify any of the terms and conditions set forth in any customer agreement between you and Johnson Rice and our clearing firm Bear Stearns Securities Corporation.