ASIS CPP "Security Principles " Flashcards Help in Exam

ASIS CPP "Security Principles "

Flashcards Help in Exam

Hallcrest: framed private security characteristics, its effect on crime control, and established a working relationship between private security and public law enforcement

Hallcrest recommendations: code of ethics, legislation, interstate licensing

Hallcrest II: profiled changes within the industry, identified security/law enforcement issues/trends, and researched security/law enforcement alliance

Organization: the arrangement of people with a common objective or purpose

Managerial function: plan, direct, coordinate, control, and organize

Line item budget (or plan in financial terms): oldest and simplest method of budgeting

Capital and program budgeting: also common

Zero-based budgeting: estimate of cost and revenues with a built-in warning mechanism

Ethics: rules by which members of a profession regulate their conduct

Security processes: information, physical, and personnel

Security’s main objectives: protection of assets and the prevention of losses

Security’s most conspicuous role: protective services

Security functions: cut across departmental lines and consist of involvement into every activity of the company without significant interference

Security department’s performance: most dependent upon officer performance

Each employee must know (POP): policy (what), objective (why), and procedure (how)

Job analysis: activities/responsibilities, interaction, qualifications, and conditions

Personnel security programs: to address job specifications via of a job description

Personnel security process: recruitment/hiring/discrimination safeguards and controls

Security awareness program: state of mind (separate but related to training)

Security managers motivate: through constructive discipline; not punishment

Discipline: the primary responsibility of the supervisor; training to correct, mold, strengthen

Discipline: management tool to condemn unacceptable behavior (not employee)

Discipline: to be administered immediately; any mistake of fact can be corrected at the next performance appraisal

3 basic management roles: interpersonal, informational, and decisional

Communication: most important management tool according to Sennewald

Written communication: best form of communication

Listening: first skill a manager must learn

Non-directional counseling: primarily involves good listening

Leadership: the influence one has on others in the pursuit of organizational objectives

Leadership styles: autocratic, bureaucratic, diplomatic, participative, free rein (avoids decision making),compelling (threats), and impelling (group force)

Supervision: goal of performance as outlined by management

Security manager (head of security): to report to a vice-president or higher

Security manager: conducts the inspection of a security department

Chain of command: path along which authority flows

Management by objective (MBO/ Peter Drucker): systematic method of achieving agreed upon Goals set in advance between a manager and subordinate

Program evaluation and review technique (PERT): controlling efforts toward a common goal

Douglas McGregor’s concept: every executive relates to his subordinates on the basis of a set of

assumptions termed Theory X and Y

McGregor’s Theory X (autocratic): emphasizes negative aspects of employee behavior

McGregor’s Theory Y (supportive): suggests that employees do not inherently dislike work, and will actually seek responsibility and better performance if encouraged to do so

Theory Z: recent Japanese style of humanized working conditions and close relationships

Custodial theory: employees will be content through economic benefits (non-motivating)

3 main theories of organizational behavior: autocratic (Theory X), custodial, and supportive (Theory Y) theories

Chris Argis (immaturity/maturity theory): work climate should provide for maturity

Warren Bennis: employee satisfaction vs. organizational requirements

Dr. Frederick Herzberg (motive-hygiene theory, or work motivation theory): motivation comes from the work itself, not from factors such as salary and job security

Dr. Mazlow (hierarchy of needs): physiological, safety, love, esteem, self-actualization

Loss prevention: any method (guards, insurance, etc.) to prevent and control loss

Loss prevention: determines probability, frequency, and cost of loss

Predatory prevention matrix: proactively promote, plan, and implement

Four D’s of loss prevention: deter, detect, delay, and deny

Protection program primary objective: motivate every employee to be part of the team

Most effective deterrent to shoplifting: well-trained store personnel

Defensible Space (Oscar Neuman): ideas and applied strategies from the New York public housing project to reduce the risk of victimization, and fear of street crime

Building site: first factor to be considered in facility construction

Environmental security (E/S): urban planning and design process integrating crime prevention with neighborhood design

Image and milieu: area design to counteract the perception of isolation/vulnerability

CPTED: crime prevention through environmental design

Security: stable and relatively predictable environment free of fear of disruption or injury

5 security levels: minimum, low, medium, high, and maximum

5 security level interventions: progresses from impede only at minimum level to impede, detect, assess, internal-external, and neutralize at maximum level

Security in-depth: progressively difficult barriers placed in the path of the aggressor

Security analysis: an in-depth study of risk management

4 security matrix factors: policy, control, risk, and phases of attack

Security survey: critical examination/analysis of the present security status of a property in terms of deficiencies/excesses, protection required, and recommendations

Crime prevention survey: focuses on deterrence regardless of physical safeguards in place

Crime control: ID root cause, opportunities (general/specific), develop a systems approach

Vulnerability study: establishes a priority in the protection of assets

Degree of protection: based upon criticality and vulnerability

Loss event profiling: typing risks, their probability, and degree of protection

Loss event probability: probability of risks becoming actual loss

Loss event criticality: impact on the enterprise if the loss occurs

PML: Possible Maximum Loss (destroyed), or Probable Maximum Loss (likely to sustain)

ALE: Annualized Loss Expectancy of not doing something (e.g., adding a back-up generator); used when computing return on Investment (ROI)

Risk abatement: reduction of risk

Risk analysis: used to match security measures with threats in order to minimize risks

Risk assessment: determining the probability and cost of potential loss

Risk assumption: the organization assumes the loss

Risk avoidance: the decision to avoid risks

Risk cells: intent, capacity, and opportunity

Risk exposure: identifies types of risks/losses, and their probabilities of occurrence

Risk management: pre-loss arrangements to ensure post-loss business continuation

Manpower: major resource required for a risk analysis

Risk spreading: reducing the likelihood of total loss (e.g., disks stored off-site)

Risk transfer: to transfer risk to insurance

4 risk countermeasures: personnel, electronics, hardware, and procedural/policy

Pure risk: no potential for benefit (e.g., earthquake)

Dynamic risk: can produce gain or profit (e.g., Las Vegas)

Quantified loss potential: the impact or severity of the loss on business

Insurance rates: dependent upon cost and frequency claims

Best basic types of protection: fidelity/surety bonds, burglary/theft/robbery insurance

Fiduciary bonds: assures trustworthiness of persons appointed by the court

Fidelity bond: insurance company indemnifies the employer against employee dishonesty

Surety bond: protects against another’s failure to perform specified acts on time

Indemnity bond: protects an individual/organization against losses of a specified type

Span of Control principle: ideal 1:3, good 1:6, acceptable 1:12

Employee theft: causes 1/3 of all business failures

Computer security incidents: 80% by dishonest and disgruntled employees

Hackers: only 1% of annual computer security incidents

Alcoholism candidate: white male over 40 and living alone

Heroin: semi-synthetic narcotic (white to dark brown [1- 98% pure], black tar 20- 80%)

False alarms: 95% to 99% of activated alarms

Growth: 1% per year for police, and 2.3% per year for security

2000 expenditures: $44 billion for police, and $104 billion for security

Guardianship: nearby people who can protect an intended victim

The security and loss prevention program begin: identifying threats, hazards and risks that face an organization

Risk analysis interchangeable: risk assessment, risk evaluation

The survey document consist of a: checklist

Risk analysis is to be done quantitatively (when): organization is large, exposure cannot be evaluated

Those who plan protection should have a: clear understanding of organization needs, corporate culture, customer needs

A risk analysis provides input for: planning protection

Security strategies generally take the form of: Personnel, systems and policies and procedures

The system prospects looks at interactions among: Sub systems

Standard and regulations serves for employees as: Resource

The concept of what a reasonable person with similar training and equipment would do in a similar situation, is called: Standard of care

Leadership style: influence success

Autocratic style: managers taking all decision

Democratic style: opinions from employees

Authority: right to act

Power: the ability to act

Policies: control employer decision making

Procedure: way of doing

Line personnel: authority and function (chain of command)

Defensible Space: a substitute term for the range of mechanisms – real and symbolic barriers, strongly defined areas of influence, improved opportunities for surveillance that combine to bring an environment under the control of its residents.

Risk management theory draws on probability and statistics, mathematics, engineering, economics, business and the social sciences among other disciplines. The study of risk has expanded to include the understanding of the psychological, cultural, and social context of risk.

Risk perception theory focuses on how humans learn from their environment and react to it. The psychometric approach is another method of research risks; it involves a survey to measure individual views of risks.

Risk communication theory concerns itself with communication perception of experts, and lazy citizens. Risk communication theory is important because it holds answers for educating and preparing citizens for emergencies.

Predictive Modeling: The ultimate value of loss reporting will be in the opportunities created for avoiding future losses. By carefully analyzing the statistically valid data developed in the loss files, future loss avoidance can be identified.

Delphi Approach (developed during World War II): consists of sending a structured questionnaire to a group of experts and then conducting a statistical analysis to generate probabilistic forecasts

Game theory: likelihood and targets of a future terrorists attack can be modeled by understanding the operational and behavioral characteristics of terrorist’s organization (helps insurance companies understand risk and set premiums)

Key training concepts: learning, retention and transfer, socialization, education, training & development

Learning (domains) cognitive (knowledge based), affective (attitudinal / perceptual), psychomotor (physical skills)

Moral turpitude: Violation of trust (contrary good morals, justice, honesty)

Job offer: (After background investigation)

Blind add: non entry level (skilled, technical, managerial)

Applicant first contact: Personnel department

Initial interviews: With security representative (supervisor)

Secondary interviews: By manager

Applicant claim (discrimination): HR Department

Initial Interviews (purpose): interest & qualification, need of department

Interviewer preparation: Study written application (in private)

Employment interview should be: sensitive and empathetic fashion

Job qualification: acquired skills, experience, education, temperament, personality

Goal is objectivity: problem is subjectivity

Best candidate not selected : bias (interviewer)

Paper and pencil test: identify (attitude)

Security employees serve: manner above reproach

Military discharge form: DD form 214

Performance (security dept): depends on: care and attention of (personnel selection)

Background investigation and screening: before job offer

discrimination: yes (for normal unsuitability) (Standard SI)

Moral turpitude: not felony conviction

Security officer must not: suffer (felony conviction)

Initial screening: by HR dept

Discrimination: Yes (moral turpitude)

Standard (lowest entry level): no conviction (moral turpitude), responsible, nature, honest, no (physical or emotional disorder, no handicap,

Advertising salary: controversial

Reduce resume filter (efforts): hire external recruiters

Coy impress (candidate): overview of the company and benefit of working

Interviewer examine (candidates) objective capabilities and subjective fit (with team)

Policy: Organization monitor, expect employee behavior conform

Procedure: how to be done (with specific items)

Policies: Useful but not to overload employees

Developing police work: with manager (whose items will be affected )

Procedure (articulation): prevent confusion

Procedure (concern): daily operation

Policy & procedure (reflect): ideal functionality of organization

key metrics and performance indicators: determine process reflect organization strategy

Metrics (alignment): with (organization strategy)

Internal training (improve): current job better

Employees (performance measured): how will with (current jobs) and contribute with (growth of cay as a whole)

2nd most valuable asset (after employee): corporate knowledge

Convince need of security: By (qualifying and prioritizing loss potential)

Security awareness program (impact): through courtesy and efficiency by SO

Number of officer required: physical complexity and size of the facility

Number of officer required: number of employees and nature of work

Number of support personnel (depend): size and complexity of SF

Developing security organization (first): identify tasks (required to perform)

Primary function of SO: access control

Officer patrol observe: people, asset and location

Patrols categories: foot patrols, vehicular patrols

Patrols: Systematically, frequently back tracking

Prime tasks of patrol: observation

Visitor escorted by: who invited a visitor

Dealing disturbed person (require): sensitivity

S/O qualification (based): on the duties (in job description)

Initial interview: by a human resource specialist

SO honestly: is obvious (custodians of company)

Difference (life and death): continued alertness

Factor related behavior: Courtesy, restraint, interest

Restraint: Without haste or undue emotion, a / abusive language and force and arguing

Learning SO: ongoing process

Without ethics: the package is incomplete

Greatest liabilities for organization: issuing deadly weapon to SO

Decision to issue (weapon): life safety of SO, expect fatal force

Organization structure: pattern of interactions and coordination

Efficiency SF (depends): adequacy and skill of its supervisors

S/Supervisions (selected): basing on knowledge of the job, abilities (administrative and leadership)

Testing S/operation program: identify residual risk, changes in organization

Vertical models: authority comes from top

Effective manorial (style): acknowledge good performance and objective noting deficiencies

Art of delegation: giving responsibility with authority and making accountable for that authority

Sham rook model (three leafed): professional manager, technician, supplier and part time worker

Network model: flattered, horizontal or open model

Net model (emphasis): on people coming together for particular task

Hybrid SF: proprietary supervisors oversee contract SO

Principle agent: relationship (p/supervisor oversee contract SO

To sell security firm projects: usually reduce costs

Bid specification consist: requirement, wages, benefits, performance expectations.

S/officer primarily liable: for their own conduct

Employing contract organization: verify (existence and adequacy of Insurance coverage)

Security personnel: vital component (asset protection program)

Security personnel: not place as sub operation of another department

Protection of assets: important management function

Develop managing effective A/P program (method): loss prevention, system approach

To be successful (A/P program): current technology, relate security with objective enterprise

Protection of assets (function): in a single organization

benefit (single organization): use system approach, utilize personnel efficiently, possible hire qualified A/P management

Qualified management (attend): with responsibilities, job content and growth opportunities

System approach (cover): entire spectrum protection, neutralize risks to a maximum extent

Protection program (basic requirement): Top official show interest

Important (consideration): setting limitation on authority of protection organization

Limitation (impose): for the protection of protection organization

protection organization act: in a staff or sr4vice capacity to line supervisors

A/P program plan / implement (consideration): anyone with protection organization has a relationship

Protection program (prime objectives): motivate every employee part of protection team

E/employee should (encourage): assume responsibility to protection asset as his own job

Assume responsibility and performing A/P role (ensure): by supervisors at all levels

Central (success A/P program): effective communication

To test (a/p program): feedback from individual at all levels

Methods of obtaining feedback should be (include): in program design of P/A

Methods (feedback): one group from (protection program), another (all other employees)

Feedback (effective techniques): discussion and interviews with e/supervisor

Listening and reacting to feedback: important

Key element in success of A/P: selection of top professional (P/A)

Protection executive (familiar): protection problems, technique

Protection executive (main force) implementation and management of system approach

Delegation of authority and responsibility: by operating head of enterprise

Delegation authority and responsibility (implemented): through issuance of policy

D/A and responsibility (important): P/O operate 24H, 7 days a week

Lack of delegation: a serious limitation on effectiveness

Important performance factor of PO: reporting level of top protection executive

Reporting level (should): be high enough

Reporting level high (why): s/activity not prematurely or improperly terminated or redirected

Indispensable for A/P (program): planning

Manager (no plan): reacts to events already occurred, s/problem which can be avoided

Planning p/o (1st step): determine overall goals and objectives

Planning (p/o): continuing process (as objectives changes or revised)

Planning of p/o (focus): avoidance or control of losses

Planning (should be): practical commitment to obtain results

Planning (flexible): to cope with (unpredictable or unexpected event)

Plans (p/o): related (overall objective / plans of enterprise

Achieving objectives of p/o: through (costs effectiveness)

Primary factor in determining size or existence of A/P program: cost effectiveness to T/Management

Final analysis (A/P) program (measured): in financial terms

Cost effective manager (makes) optimum use of assets and exercise controls over items of costs

Cost – effective in A/P (means): balance expenditure against achieved results and to revise plan

Revise plan (involve) application of critical judgment

Critical judgment (based): complete understanding of the enterprise operations and knowledge of state of the art security

Examining C/E of A/P (first): asses the overall program

Examining C/E of A/P (next aspect): assets protection operation itself

A/P program must (assessed): economically and functionally

Common language in (enterprise): finical number

Senior management (view) all (operations) from a financial perspective

S/professional lack (financial perspective): unable to justify funding

Sales forecast: dollar amount of sales revenue (in a year / Q)

Basic goal (for an corporate organization) to earn the planned profit

To be C/E S/program (consider): major loss events to prevent, incidental cost avoidances and asset (value recoveries)

Major loss events (expressed): as dollars of cost (S/program justification)

Methods of C/E: cost reduction, cost avoidance

Cost of operation (increase): “we have always this way” syndrome

One way to achieve C/E: to avoid costs or expense (through A/P resources)

Every actions in cost avoidance (should): documented and qualified financially

Acceptable technique of C/E: assigning a value or dollar amount to the avoided cost

CE/ actions (generate revenues): through (proof of loss, recovery, establishment of claims or legal cause of actions against parties, non security actions – “bad checks”

Full C/E achievement (require): a formal loss reporting system

L/R system (does): provides (history of dishonesty, theft losses), and basis for effort to asset recovery

Security incident reporting (provides): A data base

S/I database (used): to persuade management, can be utilized as a valuable tool

Dept benefits from S/I database: line management, HR, internal audit, business ethics

Good L/R (provide): a number of statistics (makes quick / assessment & decision)

L/R accomplish (functions): notification of actual suspected dishonesty loss, information (event profile and modus operands), cost of loss for individual loss, accountability for losses, source of information, management control device, basis instituting insurance claims

L/R (benefit): Identify target L/items,, place of exposure, loss trends, recovery loss, apprehension of thieves, indicate countermeasures effective

Loss Reporting (created): for future loss avoidance (in opportunities)

Categories of loss (tracked): most vulnerable asses, when highest probability of loss occur, the locations loss occurred, countermeasures (useful or ineffective), value and frequency of loss rations

Future loss avoidance (identification): carefully analysis (statically vital data)

80-20 rules: 20% of total reported instances of loss, the loss occurrence will represent 80% of the lost value the cost of loss

80-20 rule (applies): spent or eliminating or reducing losses that represent 80% cost of the loss

Loss value / frequency ratios (indicate): countermeasure needed to prevent future losses

Security officer (one element): in a complete protection plan

The activities of SO integrated into plan: through (system approach)

Security officers are: costly

Other element or technique of protection: Hardware and electronics

Duties performed by SO (determines): Scope and nature of training required

SO training requirement (address): Legal aspects, OPS duties, fire arms, admin responsibilities, E/countermeasure, use of force

Training of SO (also based): on capabilities of officer in training

General Security Instruction (given) as soon as SO reports

Specific equipment issues (governed by) the duties performed, the policy of the organization, the statues

Efficiency of SF (depends): on adequacy and skill of its supervisors

SO supervisor personnel (selected): based on (knowledge of the job and demonstrated (admin and leadership abilities)

Rotation of assigned (supervisors): to prevent cliques and ensure familiarity

Contract security (advantages): monitor savings, schedule flexibility and staffing issues

Proprietary / S (advantages): tighter (control + supervision), better tracing, and employee loyalty

Business principles dictate SO (deployment): only where required and most effective

Deployment of SO (guided) by: a rational and objective B/criterion

After criterion (next important tasks): scheduling, assignment of SO are accomplished in C/E manners.

Number of officer (required): complexity of facility, number of employees, character of work completed, number of entrances and hours open, number of patrols to protect facilities, number of escort and special assignments

40H/W, 24H/D, 7 D/W (required): 4.2 officers

Compensate (sick, vacation, h/ leave): 4.5 officers

A security officer post (defined): any location or combination of activities

SO post (key concepts): a location or combination of activities, necessary human being, training and competence required to accomplish activities

Human being concept (means): particular characteristics and reactions required

Post (common set of environmental concern) working space, heat, light and noise

Prolonged elevation of heat levels: cause (rapid loss of vigilance and result becoming drowsy)

SO sleeping on post: may be extenuating circumstances

CCTV (can): enhance and extend the effectiveness of SO

Watching TV monitors: passive activity, result (hypnotic effect)

In designing CCTV console (consider): Ergonomics

Design system should (incorporate) display and annunciation features

Sequential display of camera images (reduce): number of monitor and hypnotic effect

Video motion detector (sense): a changed scene in a camera image and a least SO

High efficiency anti-reflecting coating (on glass): eliminate the glare factor as a performance obstacles

Monotony of work (lead): gradual loss of alertness

Road hypnosis: sleep walking

Operator perform efficiency (peak): not more than 30+60 minutes without a relief

Proficiency in a skill (remain): incorporate (random performance tests and feedback routine into duties of post)

Physiological phenomenon (are): nature cyclical decrease relative lack of external stimulus, length of time on duty and repetitive monotonous tasks

Prohibition (more than 1 shift in a day): prevent (unnecessary disruptions to the human circadian biorhythm)

Basic tool (in hiring process): an (accurate and detailed Job description)

Complete job analysis: provide (documentation to support qualification requirement)

Alleviate the stress (factors): through (job modifications technique)

If performance discrepancies not due to (physical or psychological stress): a training problem

Skill Deficiency (Corrected): by additional training

On the job instruction: a basic training technique for SO

Adequate functional job analysis: possible (identify specific skill deficiencies)

Skill performance (deteriorate): no opportunity to practice skill to receive feedback

SO not: overqualified for the job

Highly qualified SO in routine job: may (engender psychological job stress and performance deficiencies

Frustration and boring aspects job (induce): non performance

Adequate job analysis (allows): to begin implement changes to job performance

Decisions to train (based on): favorable return on training investment

Increase job content (helps): to overcome psychological stress factors

Main effort to (increase job content): reduce sense of isolation and positive and timely feedback.

Daily but interactions minor / positive between SO & employee: diminish (latest hostility, sense of alienation)

Ultimate solution (performance problem): training

Performance failure (due to): undesirable behavior patterns

Key to improve effectiveness SO (operations): remove or reduce obstacles that hinder optimum job performance

Communication dependence with SO: written instructions

Important written instructions: post orders

Criteria (PO): one subject, brief, simple terms, indexed

Partial solution to (performance ratings): regular assessment and recording (after every post visit)

Performance assessment (include): personal appearance and condition of officer, condition of post, availability and condition of personnel, post equipments, quality of response to training questions, quality of response to actual situation

Central to the protection mission: observations by security officer

SO report (forms): force positive statements

Central report (document): security log

Security log: records (events affecting facility protection)

Use of report & logs: has (historical value, audit opportunities and value for G/management of facility)

SL is authorizing source to establish: whether condition, receipt T/call, time when event occurred, presence of particular people in facility.

SR and logs admissible (legal proceedings) because (entries made in the regular course of business)

To qualify for (legal proceedings): be (regularly maintained, maintained by a person as part of his regular duties)

Work should be divided: According to logical plan

Responsibility cannot be given: without delegating commensurate authority

5 primary ways to divide work: purpose, process or method, clientele, time & geography

Failure to explain organizational structure: unnecessary confusion

Major contributor to ineffective job performance: confusion

Unity of command principle: employee should be under the direct control of only one immediate

Span of control principle: one supervisor can effectively control only a limited number of people (ideal 1:3, good 1:6, acceptable 1:12)

Functional authority: delegated by a senior executive to a security manager

Security management failure: delegation of responsibility with accompanying authority

Staff duties (supportive in nature): security manager advises senior executives

Line duties (operational in nature): security manager carries out security operations

Line supervisor: ultimate responsibility for the internal security in a department

Line authority: security personnel to be supervised by security management

Line function: a direct relationship between a supervisor and subordinate

Work breakdown structure (WBS): breaking down a project into manageable parts

CSO’s role: Managerial, administrative, preventive, investigative

Effective communication: central to the success of any asset protection program

Management skills (general): conceptual, interpersonal, technical & political

Key asset element: selecting top professionals to design, implement and manage the asset protection program

Essential: knowledgeable, skilled executive

Important: Development policy

4 specific monument management functions: planning, organizing, leading and controlling

Management roles: interpersonal, informational and decisional

Organizational structure: Horizontal plan & vertical plan

Horizontal plan: Indicates division of areas of responsibility

Vertical plan: defines levels of authority

Functional authority: When a senior executive delegates par of his authority to a security director

ISO (International Organization for Standardization): Central point where stands bodies from around the world and the organizations that participate with them – develop standard jointly

American National Standard Institute (ANSI): Administrator and coordinator of the US private sector voluntary standardization system

Underwriters Laboratories (UL): For alarm products and installation (this system assists insurers in setting premiums for customers)

The National Fire Protection Associations (NFPA): Standards for fire protection equipment

The American Society for Testing and Materials (ASTM): nonprofit organization providing a forum for produces, consumers, government and academia to meet to write standards for materials

ISO/TC 223: Societal Security (security, business continuity, crisis management, disaster management and emergency response)

Assets: Resource of value requiring protection

3 types of assets: Tangible, intangible and mix

Valuing assets: through the use of dollars, by using consequence criteria and by policy

Costs: Direct and indirect

Probability of occurrence: Likelihood of an adversary event

Factors affecting PO: physical, social and political environment, historical experience, procedures and process and criminal capabilities

Annual Loss Expectancy (ALE): ALE = 10 (f+i-3)/3

Elements affecting frequency estimation: access, natural disaster, environmental hazard, facility housing, work environment and value

3 stage approach of assessing criticality: prevention control and recovery

Risk: Uncertainty of financial loss

Risk VS Peril and Risk VS Hazard: Risk should not be confused with perils, which are the causes of risk- such things as fire, flood, and earthquake. Nor should risk be confused with a hazard, which is the contributing factor to a peril. Almost anything can be a hazard- a loaded gun, a bottle of caustic acid, a bunch of city rags, or a warehouse used for storing highly flammable products, as an example.

Risk (classification): Personal (people assets), property (material assets), and liability (legal issues)

Risk analysis: Identify the assets in need of protection

Identify the kinds of risks (or threats)

Determine the probability of the identified risks occurring

Determine the impact or effect on the organization in dollar values

Major resource (for performing RA): trained manpower

Quantitative RA: assigns the probability of occurrence of identified hazards and determines their impact or consequence, usually resulting in a value such as Annual Loss Expectancy (ALE) or Annual Cost

Qualitative RA: more a kin to risk assessment or vulnerability analysis, concentrates less (or not at all) on probability and looks at threats, vulnerability

Risk Assessment VS Risk Management: Using probabilistic risk assessment is more formal, scientific, technical, quantitative, and objective when compared to risk management, which involves value judgment and heuristics and is more subjective, qualitative, societal, and political

Risk management (four basic steps): identification of risks, analysis and study of risks, optimization of risks, ongoing study of the security program

Cost/Benefit analysis (three basic criteria): cost, reliability and delay

RA vs VA: VA is process is part of the larger risk assessment process

3 phases of VA: planning, the VVA and reporting & using the result

VA (protection system): facility characterization, threat definition, target identification

Threat definition (methodology): List the information needed to define the threat

Collect information on the potential threat

Organize the information to make it usable

Insurance (definition): transfer of risk from one party (the insured) to another party (the insurer), which the insurer is obligated to indemnify (compensate) the insured for economic loss caused from an unexpected event

Indemnity: Protection against future lost

Large number of policy holders: crates a shared risk

2 variables for Insurance rate: the frequency of claims and the cost of each claim

2 forms of control: competition among insurance companies & government regulations

Financial health of an insurance company: Company rating (A+ or better)

2 broad categories of insurance: government and private

Private insurance industry in USA: property and liability, insurance and life and health insurance

Commercial Package Policy (CPP): multiple coverage in single policy, fewer gaps in coverage, lower premiums, because individual policies are purchased and convenience.

2 basic protection against crime losses: fidelity and surety bonds and burglary, robbery and theft insurance

Bond: Legal instrument whereby one party (the surety) agrees to indemnify another party (the oblige)

Bonding contracts involves 3 parties: Insurance contract involves two parties

Insurance is easier to cancel: Bond is not easy to cancel

Surety bond: Three party instrument between a surety (insurance company), the contractor and the project customer

Surety bond: compensation because of performance failure

Insurance: Transfer of risk from one party to another

Fidelity bonds: Employee be investigated by the bonding company to limit the risk of dishonesty

Contract construction bond: common surety bond

Fiduciary bond: Person appointed by the court to supervise the property of the others will be trustworthy

Litigation bond: Specific conduct by defendants and plaintiffs

Bail bond: Ensures a person will appear in the court

Burglary Insurance claim: Requires the unlawful taking of property from a closed business that was entered by force

10% of loss to property: from ordinary crime is insured

Fire policy: First kind of insurance developed

Factors influence fire insurance: ability of the community’s fire alarm, fire department and water system to minimize property damage once a fire begins

Class 1 community: greatest suppression ability

Class 10 community: least ability

Installing sprinkler system in the building: Produce ROI

Business Income Insurance (business interruption insurance): indemnifies the insured for profits and expenses lost because of damage to property from an insured peril

Bid Bond: Guarantees the bidder on a contract will enter into the contract and furnish the required payment and performance bond

Performance bond: Indicates that the company has necessary skills and capabilities to carry out the required work

Payment bond: Guarantees payment from contractor to person who furnishes labor, materials etc.