Marriott’s approach to Security Risk Management

Danny ChanDirector – Global Safety & Security

Marriott International Inc.

MARRIOTT CONFIDENTIAL AND PROPRIETARY INFORMATIONThe contents of this material are confidential and proprietary to Marriott International, Inc. and may not be reproduced, disclosed, distributed or used without the

express permission of an authorized representative of Marriott. Any other use is expressly prohibited.

Danny ChanDirector – Global Safety & SecurityMarriott International Inc.

The Impact of Crisis on Shareholder Value

Source: “The Impact of Catastrophes on Shareholder Value,” Rory F. Knight & Deborah J. Pretty, Templeton

College, University of Oxford, p. 3.

The Impact on Shareholder Value

Trading Days After the Event

25 50 75 100 125 150 175 200 225 250

Effective Crisis Response

Ineffective Crisis Responses

After initial reflex (10 days),market begins to assesscompany’s response.

Opportunities and Risk“

When written in Chinese, the word "crisis" is composed of two characters. One represents danger, and the other represents opportunity.“

“危机” ( Wei Ji )

John Fitzgerald "Jack" Kennedy (May 29, 1917 – November 22, 1963), 35th President of the United States

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Stratfor - The Militant Threat to Hotels Report 8 September 2009

“What used to keep me up at night?"

What keeps me up today?

2014 Global Risk Outlook

How we sometimes feel today….

A cat and mouse game….

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Islamabad Marriott Hotel

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196 security officers. 60 were on shift at the time of the attack.

62 CCTV cameras monitored by three security officers at all times

Window film on all public areas

A combination of a drop down barrier and hydraulic Delta barriers

There were four bomb sniffing dogs

Under-vehicle cameras monitored by security officer in security booth

Islamabad Marriott Hotel Before 9/20/2008 Attack

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• Bombing occurred at 8:02 pm.• Hotel running 47% occupancy• Up to 1,500 people in the hotel, celebrating “Iftar”. • A suicide bomber drove a six-wheel dump truck loaded with 1,320 lb (600 kg) of explosives believed to be a combination of TNT, RDX and Aluminum. • The vehicle tried to break through but was stopped by the barrier, suicide bomber decided to detonate the device.

Islamabad Marriott Hotel Attack - Incident Details

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• 56 dead• 5 hotel guests• 13 patrons • 8 others• 30 employees (20 security officers)

• 265 wounded (35 foreigners)

• Crater measured 60 ft. (18 m) across and 25 ft. (7.6 m) deep

• 132 ft. (40.23 m) stand off vehicle checkpoint to the hotel

• Fire broke out

• Severe structural damage

Islamabad Marriott Hotel AttackAftermath

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Islamabad Marriott Hotel After 9/20/2008 Attack

Marriott Islamabad

Bangkok May 2010

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JW Marriott & Ritz-Carlton Jakarta

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JW Marriott & Ritz-Carlton Jakarta Before 17 July 2009 Attacks

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Guest Entrance

Employee Entrance

Inspection Point

Guest Entrance

JW Marriott & Ritz-Carlton Jakarta After 17 July 2009 Attacks

JW Marriott and Ritz Carton Jakarta, July 2009

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Post Incident Investigation

Japan’s Crisis – The Aftermath

• 9 properties• Radiation Threat• Expatriates• Evacuation plans & shelter-in-place plans

• Follow radiological incident preparedness guidelines

• Set up crisis center in Tokyo• Dispatch regional security team• Track Marriott travelers• Evacuate guests and expat

families to Nagoya, Osaka, Naruto• Prepare shelter-in-place• Disaster relief efforts• Monitor events

Marriott Properties’ Preparation

So how bad was it?

“You slacken, you choose the easy way and you'd be finished”

Former Minister Mentor LEE Kwan Yew

2014

Deter Detect Defend

Recognize Response React

danny.chan2@marriott.com