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A Report of Construction Sites Evaluation CEIE605-Risk and Uncertainty System Analysis

15 May 2023

Risk Assessment Report


15 May 2023
Yu Cheng G01405845

Mission Statement

The new customer call & fulfilment center will give people and warehouse activities a

consolidated location, enabling effective operations and cost savings. The facility will operate

24 hours a day, seven days a week, and will include strong security measures including

perimeter fencing, armed patrols, controlled vehicle gates, and illumination to protect people

and property. The efficient running of the facility depends on the availability of crucial utilities

including power, natural gas, high-speed internet connection, and public water and sewer. The

asset is essential to the business building it because it will support operations and yield an

8.5% return on investment. The building is anticipated to be crucial for the foreseeable future,

meeting the demands of the business and assisting in its growth. However, it is obvious that

the asset has to be situated in a location that can accommodate its operations and offer quick

access to essential services. Last but not least, if the facility cannot produce a sufficient return

on investment, it may cease to be economically viable.

Critical Assets

To construct the new customer call & fulfilment center appropriately, it is important to verify

the critical assets. First, the center requires employees to work on-site for the operation

24/7/365. In order to satisfy the need for accommodation and warehousing functions, the

land use of the building will go up to at least 500,000 sq. feet. Additionally, considering the
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safety of the center, Perimeter 8-ft chain link fencing with 3-wire outriggers, armed patrol

personnel, perimeter lighting and controlled gates are required. Moreover, basic

telecommunications equipment and utilities are necessarily vital. Therefore, utilities,

including electricity, AC, natural gas, public water & sewer, and high-speed internet access are

inevitable to target the demand. Last but not least, to achieve the goal of income, the use of

8.5% return on investment is necessary.

The Analysis Process of Natural Threats

1. Earthquakes

Figure 1. UBC Seismic Zone Map of US

Table1. Estimated Damage to Seismic Events

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Table 2. Seismic Damage Factors

Consequence

Determine the categories of the zone in Figiure1., the obtained zone will be applied to

determine the characteristics of the seismic information. Then, the Damage Factors will

be defined based on the types of the building.

➔ Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

Countermeasure Effectiveness Index


Countermeasure Range Value

1 Year constructed After 1988=5, Before =0

2 Reinforced concrete shear walls Yes=2, No=0

3 Shock absorption foundation Yes=2, No=0


isolators

4 Frame cross-bracing Use of ductile Yes=2, No=0

iron pipe

5 Flexible pipe joints Yes=2, No=0

6 Equipment tie-downs Yes=2, No=0

7 Secured building facades Yes=3, No=0

8 Shock resistant window glass Yes=4, No=0

9 Secured Window Frames Yes=2, No=0

Effectiveness Index
Sum the existing Seismic countermeasure indices for overall effectiveness
Table 3. Seismic Vulnerabilities

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Table 4. Seismic Vulnerabilities

Figure 2. Seismic Threat Likelihood

Vulnerability and Threat Likelihood

The countermeasure effectiveness index table will be applied to determine the columns

in Table 4. By incorporating the Zone and the Effectiveness Index, it will be able to

determine the amount of vulnerability. Lastly, the threat likelihood can be calculated by

the data from National Oceanic and Atmospheric Administration (NOAA) website.

R = C*V*T

Lost
Zone Cost(M) DF Consequences(C) V T Risk
Revenue(M)

Table 5. The Overall Risk


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Where:

R = C* V*T

2. Tornadoes

First, there are several amounts that will be assumed before the risk assessment for

tornadoes including the cost of the property, the revenue lost during the repair, the Value

of Statistical Life (VSL), and Value of Statistical Injuries (VSI).

Consequence

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues + Value of Statistical

Life (VSL) + Value of Statistical Injuries

The columns (with yellow color) including Number, Total Fatalities, and Total Injuries will

be obtained from National Oceanic and Atmospheric Administration (NOAA) website.

Avg. Fatalities Avg. Injuries


Number(N) Total Fatalities VSL Total Injuries VS Injuries
per Event per Event
EF1
EF2
EF3
EF4
EF5
Table 6. Calculation for Tornado VSL & VSI

Table 7. Tornadoes Damage Factors


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Index Range
1. Foundation Ties 0-2
2. Roof Ties 0-2
3. Frame Connector Reinforcements 0-2
4. Reinforced Windows & Doors 0-3
5. Minimized Large Openings 0-3
6. Underground Construction 0-8
(Fully = 8; Partially = 5; Very Little = 0)
CM Effectiveness Index →
Table 8. Tornado Countermeasure Effectiveness Index

Vulnerability

Table 9. The Vulnerability of Tornadoes

Threat Likelihood

Period Return Period Longest Length Widest Path Area of Tornado Threat Likelihood
Number (N)
(years) (N/R) (mi) (ft) Footprint (AAA) (sq. mi) (T)

EF1

EF2

EF3

EF4

EF5

Table 10. Threat Likelihood Calculation

T = (N/R) x (AAA)/(Ac)

Where:

N = No. tornados in the class

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R = Years of record

AAA = Average Affected Area

Ac = Area of the County

Consequences Vulnerability Threat Likelihood


Risk
(C) (V) (T)
EF1
EF2
EF3
EF4
EF5
Total Tornadoes Risk
Table 11. The Overall Risk

R= C*V*T

3. Flooding

Firstly, the cost of the property, and the revenue lost during the repair will be defined.

Consequences

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

Figure 3. Flood Zone from the FEMA Flood Maps

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Table 12. Flooding Depth Estimation

Damage Factor Considerations


Is the building / asset constructed using flood-resistant Yes, NO or Not Apply
materials (concrete, ceramic, pressure-treated timber)?
Are electrical system components (circuit breakers, meters, Yes, NO or Not Apply
outlets) raised off the floor at least above anticipated flood
depth?
Are all gas storage tanks and cylinders anchored? Yes, NO or Not Apply
Are all HVAC equipment located on an upper floor as Yes, NO or Not Apply
opposed to at the basement level?
Does the building / asset have alternative power sources Yes, NO or Not Apply
available if it loses power?
Are spare parts or critical equipment inventory available for Yes, NO or Not Apply
use in the event of an attack / hazard?

Table 13. Damage Factor Considerations and Determination

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CM Effectiveness V
Is the facility elevated above the flood zone? If yes, V =0
Is the facility located below the flood zone? If yes, V = 1
Do external flood barriers (dams) exist? If yes, V = 0.5
1 Is the building/asset constructed using flood-resistant Yes = 3, No = 0
materials (concrete, ceramic, pressure-treated timber)?
2 Are all finished floor located above basement level? Yes = 2, No = 0
3 Are sewer back-flow valves installed on drainage pipes? Yes = 2, No = 0
4 Does facility have sump pumps with emergency power? Yes = 2, No = 0
5 Is the building/asset sealed so that water cannot enter Yes = 2, No = 0
(“dry flood-proof”)?
Total V
Table 14. Countermeasures Effectiveness

Vulnerability

Table 15. Vulnerability of Flood

Threat Likelihood

The threat likelihood will be calculated by the data from National Oceanic and Atmospheric

Administration (NOAA) website.

Figure 4. Spring Flood Outlook


R = C*V*T
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Threats Characterization for Each Site

1. Livingston, MT

Livingston is a place located near Yellowstone National Park; Also, it is situated in an area

that experiences seismic activity due to its proximity to the Rocky Mountains. Therefore,

earthquakes are considered one of the potential threats for the city of Livingston.

Additionally, The Yellowstone River goes through the middle of Livingston City, which

might engender a higher probability level of floods. Thus, taking into account of the flood

as one of the possible threats. However, although tornadoes are not the main contributor

to the natural disasters, it is still plausible that tornadoes are one of the possible pitfalls

based on the historical data. As a result of the valuable products in the center’s

warehouse, the threat of terrorist attack is potentially existed. Last but not least, for the

new center, losing employees is considered a dependency threat.

Direct Threat Assessment

⚫ A group of gunmen are trying to set up a bomb in the control room to shut down the

telecommunication system, their goal is to avoid killing people and successfully trigger

the bomb in the control room. This facility is replenished with a large number of valuable

company products in the warehouse on the last day of June and December each year;

Attackers want to steal valuable items from this facility by cutting off the communications

system. However, any of the reasons that causes the bomb to not be triggered is

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considered a failure for the attacker.

Consequence

The repair cost of the telecommunication system will be estimated at $1 million, and the loss

of the revenues is $0.5 million.

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

Countermeasure Effectiveness Index


Countermeasure Range value
1 Perimeter 8-ft Chain Link Fencing with Yes = 2, No = 0 3
3-Wire Outriggers
2 Controlled Gates Yes = 3, No = 0 3
3 Monitoring System Yes = 2, No = 0 2
4 Armed patrol personnel Yes = 3, No = 0 2
Effectiveness Index (0-10) 10
Table 15. Countermeasure Effectiveness
Countermeasure Effectiveness Index Damage Factors (DFs)

3 1

6 0.7

8 0.5

10 0.3

Table 16. Damage Factors of Direct Threat


C = 1,000,000*0.3 + 500,000 = $800,000.

Vulnerability

CM#1 CM#2 CM#3 CM#4 Protected


Penetrate fence Enter the building Find the control room Set up and trigger the Asset
bomb

Figure 5. Vulnerability System


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The vulnerability of the system is 0.95*0.5*0.3*0.2 = 2.85%.

Threat likelihood

2/365 = 0.005

R=C*V*T

R = 800,000*0.0285*0.005 = $114

Indirect Threats Assessment

⚫ Earthquake

Countermeasure Effectiveness Index


Countermeasure Range Value
1 Year constructed After 1988=5, Before =0 5
2 Reinforced concrete shear walls Yes=2, No=0 2
3 Shock absorption foundation Yes=2, No=0 2
isolators
4 Frame cross-bracing Use of Yes=2, No=0 0
ductile iron pipe
5 Flexible pipe joints Yes=2, No=0 2
6 Equipment tie-downs Yes=2, No=0 2
7 Secured building facades Yes=3, No=0 3
8 Shock resistant window glass Yes=4, No=0 4
9 Secured Window Frames Yes=2, No=0 2
Effectiveness Index 22
Table 17. Seismic Vulnerabilities

•The center is worth $13 million.

• IBC Design for Seismic Zone 2B

• Moderate Richter: 5.5-5.9 (0.1g → 0.13g)

• Damage Factor: DF = 0.5

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• Vulnerability(V): 0.3

• Threat Likelihood (T)

For 1% chance in 50-years

Livingston, MT is in 0.15g → 0.2g (yellow) range.

From Safer-Simpson Scale → Zone 2B

0.01/50=0.0002

Lost
Zone Cost(M) DF Consequences(M) V T Risk
Revenue(M)

2B $13 0.5 1 7.5 0.3 0.0002 $450


Table 18. The Overall Risk

⚫ Tornadoes

(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) VSL =

$12.5M/person, and (d) VS Injuries = 30% VSL

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

+ Value of Statistical Life (VSL)

+ Value of Statistical Injuries

Avg. Fatalities Avg. Injuries


Number(N) Total Fatalities VSL Total Injuries VS Injuries
per Event per Event
EF1 0 0 0 $0 0 0 0
EF2 1 0 0 $0 1 1 $3.75M
EF3 0 0 0 $0 0 0 0
EF4 0 0 0 $0 0 0 0
EF5 0 0 0 $0 0 0 0
Table 19. Calculation for Tornado VSL & VSI

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Countermeasures Effectiveness

Index Range
7. Foundation Ties 0
8. Roof Ties 2
9. Frame Connector Reinforcements 2
10. Reinforced Windows & Doors 3
11. Minimized Large Openings 3
12. Underground Construction 5
(Fully = 8; Partially = 5; Very Little = 0)
CM Effectiveness Index → 15

Threat Likelihood

Threat Likelihood (T) = (N/R) x (AAA)/(Ac)

Period Return Period Longest Length Widest Path Area of Tornado Threat Likelihood
Number (N)
(years) (N/R) (mi) (ft) Footprint (AAA) (sq. mi) (T)

EF1 73 0 0 0 0 0 0

EF2 73 1 0.014 2.09 150 0.06 0.000822

EF3 73 0 0 0 0 0 0

EF4 73 0 0 0 0 0 0

EF5 73 0 0 0 0 0 0

Table 20. Threat Likelihood Calculation


Consequences Vulnerability Threat Likelihood
Risk
(C) (V) (T)
EF1 $1M 0.2 0 $0.00
EF2 $9.95M 0.2 0.000822 $1,635.78
EF3 $7.5M 0.3 0 $0.00
EF4 $8.8M 0.4 0 $0.00
EF5 $10.1M 0.4 0 $0.00
Table 21. The Overall Risk

⚫ Flooding

The call center is worth $13 million.

The loss of this center will result in lost revenues of $1 million until repaired.

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Consequences

Figure 6. Flood Zone from the FEMA Flood Maps

Damage Factor Considerations


Is the building / asset constructed using flood-resistant Yes
materials (concrete, ceramic, pressure-treated timber)?
Are electrical system components (circuit breakers, meters, Yes
outlets) raised off the floor at least above anticipated flood
depth?
Are all gas storage tanks and cylinders anchored? Not apply
Are all HVAC equipment located on an upper floor as Yes
opposed to at the basement level?
Does the building / asset have alternative power sources Yes
available if it loses power?
Are spare parts or critical equipment inventory available for Yes
use in the event of an attack / hazard?

Table 22. Damage Factor Considerations and Determination


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Vulnerability

CM Effectiveness V
Is the facility elevated above the flood zone? If yes, V =0 0
Is the facility located below the flood zone? If No, V = 1
Do external flood barriers (dams) exist? If yes, V = 0.5 0
1 Is the building/asset constructed using flood-resistant Yes = 3, No = 0 3
materials (concrete, ceramic, pressure-treated timber)?
2 Are all finished floor located above basement level? Yes = 2, No = 0 0
3 Are sewer back-flow valves installed on drainage pipes? Yes = 2, No = 0 2
4 Does facility have sump pumps with emergency power? Yes = 2, No = 0 2
5 Is the building/asset sealed so that water cannot enter Yes = 2, No = 0 0
(“dry flood-proof”)?
Total V 7
Table 23. Countermeasures Effectiveness

1. Locate the vault site on the FEMA Map: Zone AE

2. Determine Expected 100-year flood depth: 18 inches

3. Determine the Damage Factor (DF): 0.2

4. Calculate Consequences: 0.2 * 13,000,000 + 1,000,000 = $3,600,000

5. Vulnerability: 0.2

6. Frequency of 100-year flood: 4%

7. Calculate Risk: R = C*V*F= 3,600,000*0.2*0.04 = $28,800/year

Dependency Threats Assessment

⚫ Loss of employees

To recruit a new employee, it costs $3,000 to promote the recruitment process, the loss of the

revenue due to losing 1 employee is 10,000. We assume that the new call center’s retention

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rate will be 40%.

Damage Factor Considerations


1 Salary arrears No
2 Unfriendly working environment Yes
3 Staff lunch is not provided Yes
4 Unclear job promotion system No
5 Pay lower than the market average No
6 Ignore conflict between colleagues Yes

Damage Factors
Most are 1
met or
don’t apply
Many are 0.7
met
Only a few 0.5
are met
Most are 0.3
not met
Table 24. Damage Factor Considerations

➔ Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

C = 3,000*0.5+10,000 = $11,500.

Vulnerability

According to the data analysis results in 2022, the average retention rate of call center in the

United States and the UK is 42% (DailyPay, 2023). Moreover, in general, the 30-45 percent

average yearly turnover rate for call centers has remained consistent over the previous few

years (Call Center Attrition, 2022).

The equation of retention rates

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EL
R= × 100
(OE + EE)/2

Where:

R = retention rates

EL = Employees who left

OE = Original # of employees

EE = # Employees at the end of year

Retention Rate Vulnerability


0~10% 0.3
11%~35% 0.5
36%~60% 0.7
>61% 1
Table 25. Vulnerability

V=0.7

Threat Likelihood

T = 40%.

Risk

R = C*V*T = 11500*0.7*0.4 = $3,220.

Brunswick, GA

To define the reasonable threats in Brunswick, Georgia, the historical hazards data was

analyzed. First, an area approximately 140 miles north of Brunswick city, North Charleston in

South Carolina, has frequent earthquakes. The reason of the frequent earthquakes is the

result of stresses transmitted inward from the boundaries of the North American plate.

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Therefore, Earthquakes are considered as a potentially destructive threat for Brunswick, GA.

Additionally, tornado is also one of the most reasonable threats in Brunswick. Due to the

location of Brunswick city, once the tornadoes appear, it might bring a large amount of

rainwater engendering the possibility of water damage. Moreover, because the East River and

the South Brunswick River both flow into the city of Brunswick, flooding is also regarded as

one of the indirect threats.

Furthermore, as a result of the valuable products in the center’s warehouse, the threat of

terrorist attack is potentially existed. Last but not least, for the new center, losing employees

is considered a reasonable threat.

Direct Threats Assessment

⚫ A group of gunmen are trying to set up a bomb in the control room to shut down the

telecommunication system, their goal is to avoid killing people and successfully trigger

the bomb in the control room. This facility is replenished with a large number of valuable

company products in the warehouse on the last day of June and December each year;

Attackers want to steal valuable items from this facility by cutting off the communications

system. However, any of the reasons that causes the bomb to not be triggered is

considered a failure for the attacker.

Consequence

The repair cost of the telecommunication system will be estimated at $1 million, and the loss

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of the revenues is $0.5 million.

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

Countermeasure Effectiveness Index


Countermeasure Range value
1 Perimeter 8-ft Chain Link Fencing with Yes = 2, No = 0 3
3-Wire Outriggers
2 Controlled Gates Yes = 3, No = 0 3
3 Monitoring System Yes = 2, No = 0 2
4 Armed patrol personnel Yes = 3, No = 0 2
Effectiveness Index (0-10) 10
Table 26. Countermeasure Effectiveness
Countermeasure Effectiveness Index Damage Factors (DFs)

3 1

6 0.7

8 0.5

10 0.3

Table 27. Damage Factors of Direct Threat

C = 1,000,000*0.3 + 500,000 = $800,000.

Vulnerability

CM#1 CM#2 CM#3 CM#4 Protected


Penetrate fence Enter the building Find the control room Set up and trigger the Asset
bomb

Figure 7. Vulnerability System

The vulnerability of the system is 0.95*0.5*0.3*0.2 = 2.85%.

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Threat likelihood

2/365 = 0.005

Risk

R = C*V*T = 800,000*0.0285*0.005 = $114

Indirect Threats Assessment

⚫ Earthquake

Countermeasure Effectiveness Index


Countermeasure Range Value
1 Year constructed After 1988=5, Before =0 5
2 Reinforced concrete shear walls Yes=2, No=0 2
3 Shock absorption foundation Yes=2, No=0 2
isolators
4 Frame cross-bracing Use of Yes=2, No=0 0
ductile iron pipe
5 Flexible pipe joints Yes=2, No=0 2
6 Equipment tie-downs Yes=2, No=0 2
7 Secured building facades Yes=3, No=0 3
8 Shock resistant window glass Yes=4, No=0 4
9 Secured Window Frames Yes=2, No=0 2
Effectiveness Index 22
Table 28. Seismic Vulnerabilities

The calculation of earthquakes risk in Brunswick.

• IBC Design for Seismic Zone 1

• Moderate Richter: 4.0-4.9 (0.05g → 0.1g)

• Damage Factor: DF = 0.5

• Vulnerability(V): 0.1

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• Threat Likelihood (T)

For 1% chance in 50-years

Brunswick, GA is in 0.05g → 0.1g (light blue) range.

From Safer-Simpson Scale → Zone 1

0.01/50=0.0002

Lost
Zone Cost(M) DF Consequences(C) V T Risk
Revenue(M)

1 $13 0.5 1 7.5 0.1 0.0002 $150


Table 29. The Overall Risk

⚫ Flooding

The call center is worth $13 million.

The loss of this center will result in lost revenues of $1 million until repaired.

Consequences

Figure 8. Flood Zone from the FEMA Flood Maps

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Damage Factor Considerations


Is the building / asset constructed using flood-resistant Yes
materials (concrete, ceramic, pressure-treated timber)?
Are electrical system components (circuit breakers, meters, Yes
outlets) raised off the floor at least above anticipated flood
depth?
Are all gas storage tanks and cylinders anchored? Not apply
Are all HVAC equipment located on an upper floor as Yes
opposed to at the basement level?
Does the building / asset have alternative power sources Yes
available if it loses power?
Are spare parts or critical equipment inventory available for Yes
use in the event of an attack / hazard?

Table 30. Damage Factor Considerations and Determination

Vulnerability

CM Effectiveness V
Is the facility elevated above the flood zone? If yes, V =0 0
Is the facility located below the flood zone? If yes, V = 1
Do external flood barriers (dams) exist? If yes, V = 0.5 0
1 Is the building/asset constructed using flood-resistant Yes = 3, No = 0 3
materials (concrete, ceramic, pressure-treated timber)?
2 Are all finished floor located above basement level? Yes = 2, No = 0 0
3 Are sewer back-flow valves installed on drainage pipes? Yes = 2, No = 0 2
4 Does facility have sump pumps with emergency power? Yes = 2, No = 0 2
5 Is the building/asset sealed so that water cannot enter Yes = 2, No = 0 0
(“dry flood-proof”)?
Total V 7
Table 31. Countermeasures Effectiveness

1. Locate the vault site on the FEMA Map: Zone AE

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2. Determine Expected 100-year flood depth: 18 inches

3. Determine the Damage Factor (DF): 0.2

4. Calculate Consequences: 0.2 * 13,000,000 + 1,000,000 = $3,600,000

5. Vulnerability: 0.2

6. Frequency of 100-year flood: 5%

7. Calculate Risk: R = C*V*F= 3,600,000*0.2*0.05 = $36,000/year

⚫ Tornadoes

(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) VSL =

$12.5M/person, and (d) VS Injuries = 30% VSL

Avg. Avg.
Total
Number(N) Total Fatalities Fatalities VSL Injuries VS Injuries
Injuries
per Event per Event
EF1 0 0 0 $0 0 0 0
EF2 2 0 0 $0 0 0 0
EF3 0 0 0 $0 0 0 0
EF4 0 0 0 $0 0 0 0
EF5 0 0 0 $0 0 0 0
Table 32. Calculation for Tornado VSL & VSI

Countermeasures Effectiveness

Index Range
13. Foundation Ties 0
14. Roof Ties 2
15. Frame Connector Reinforcements 2
16. Reinforced Windows & Doors 3
17. Minimized Large Openings 3
18. Underground Construction 5
(Fully = 8; Partially = 5; Very Little = 0)
CM Effectiveness Index → 15
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Threat
Consequences Vulnerability
Likelihood Risk
(C) (V)
(T)
EF1 $1M 0.2 0 $0.00
EF2 $6.2M 0.2 0.046712 $57,922.88
EF3 $7.5M 0.3 0 $0.00
EF4 $8.8M 0.4 0 $0.00
EF5 $10.1M 0.4 0 $0.00
Table 33. The Overall Risk

Dependency Threats Assessment

⚫ Loss of employees

To recruit a new employee, it costs $3,000 to promote the recruitment process, the loss of the

revenue due to losing 1 employee is 10,000. We assume that the new call center’s retention

rate will be 40%.

Damage Factor Considerations


1 Salary arrears No
2 Unfriendly working environment Yes
3 Staff lunch is not provided Yes
4 Unclear job promotion system No
5 Pay lower than the market average No
6 Ignore conflict between colleagues Yes

Damage Factors
Most are 1
met or
don’t apply
Many are 0.7
met
Only a few 0.5
are met
Most are 0.3
not met
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Table 34. Damage Factor Considerations

➔ Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

C = 3,000*0.5+10,000 = $11,500.

Vulnerability

According to the data analysis results in 2022, the average retention rate of call center in the

United States and the UK is 42% (DailyPay, 2023). Moreover, in general, the 30-45 percent

average yearly turnover rate for call centers has remained consistent over the previous few

years (Call Center Attrition, 2022).

The equation of retention rates

EL
R= × 100
(OE + EE)/2

Where:

R = retention rates

EL = Employees who left

OE = Original # of employees

EE = # Employees at the end of year

Retention Rate Vulnerability


0~10% 0.3
11%~35% 0.5
36%~60% 0.7
>61% 1
Table 35. Vulnerability
V=0.7

Threat Likelihood

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T = 40%.
Risk
R = C*V*T = 11500*0.7*0.4 = $3,220.

Fort Smith, AK

To define the reasonable threats in Fort Smith, Arkansas, the historical hazards data was

analyzed. Although there is barely has historical earthquake data in Fort Smith city, the

surrounding east and west of Fort Smith city are the centers of Arkansas and Oklahoma, all of

which have large amounts of historical earthquake data. Therefore, this report considers that

Fort Smith city is an area that needs to be considered for earthquake threats. In addition, one

of the major branches of the Mississippi River in the United States, the Arkansas River, runs

through the city of Fort Smith. Therefore, the threat of flooding must be taken into account.

Moreover, according to the data of previous years, tornadoes have caused serious impacts in

Fort Smith; In order to take into account the lost which might be caused by tornadoes, this

assessment incorporates the tornadoes as one of the reasonable threats.

Furthermore, as a result of the valuable products in the center’s warehouse, the threat of

terrorist attack is potentially existed. Last but not least, for the new center, losing employees

is considered a threat which has a significant impact on the center.

Direct Threats Assessment

⚫ A group of gunmen are trying to set up a bomb in the control room to shut down the

telecommunication system, their goal is to avoid killing people and successfully trigger

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the bomb in the control room. This facility is replenished with a large number of valuable

company products in the warehouse on the last day of June and December each year;

Attackers want to steal valuable items from this facility by cutting off the communications

system. However, any of the reasons that causes the bomb to not be triggered is

considered a failure for the attacker.

Consequence

The repair cost of the telecommunication system will be estimated at $1 million, and the loss

of the revenues is $0.5 million.

Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

Countermeasure Effectiveness Index


Countermeasure Range value
1 Perimeter 8-ft Chain Link Fencing with Yes = 2, No = 0 3
3-Wire Outriggers
2 Controlled Gates Yes = 3, No = 0 3
3 Monitoring System Yes = 2, No = 0 2
4 Armed patrol personnel Yes = 3, No = 0 2
Effectiveness Index (0-10) 10
Table 36. Countermeasure Effectiveness
Countermeasure Effectiveness Index Damage Factors (DFs)

3 1

6 0.7

8 0.5

10 0.3

Table 37. Damage Factors of Direct Threat

C = 1,000,000*0.3 + 500,000 = $800,000.

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Vulnerability

CM#1 CM#2 CM#3 CM#4 Protected


Penetrate fence Enter the building Find the control room Set up and trigger the Asset
bomb

Figure 9. Vulnerability System

The vulnerability of the system is 0.95*0.5*0.3*0.2 = 2.85%.

Threat likelihood

2/365 = 0.005

Risk

R = C*V*T = 800,000*0.0285*0.005 = $114

Indirect Threats Assessment

⚫ Earthquake

Countermeasure Effectiveness Index


Countermeasure Range Value
1 Year constructed After 1988=5, Before =0 5
2 Reinforced concrete shear walls Yes=2, No=0 2
3 Shock absorption foundation Yes=2, No=0 2
isolators
4 Frame cross-bracing Use of Yes=2, No=0 0
ductile iron pipe

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5 Flexible pipe joints Yes=2, No=0 2


6 Equipment tie-downs Yes=2, No=0 2
7 Secured building facades Yes=3, No=0 3
8 Shock resistant window glass Yes=4, No=0 4
9 Secured Window Frames Yes=2, No=0 2
Effectiveness Index 22
Table 38. Seismic Vulnerabilities

• IBC Design for Seismic Zone 1

• Moderate Richter: 4.0-4.9 (0.05g → 0.1g)

• Damage Factor: DF = 0.5

• Vulnerability(V): 0.1

• Threat Likelihood (T)

For 1% chance in 50-years

Fort Smith, AK is in the 0.05g → 0.1g (light blue) range.

From Safer-Simpson Scale → Zone 1

T= 0.01/50 = 0.0002

Lost
Zone Cost(M) DF Consequences(C) V T Risk
Revenue(M)

1 $13 0.5 1 7.5 0.1 0.0002 $150


Table 39. The Overall Risk

⚫ Flooding

The call center is worth $13 million.

The loss of this center will result in lost revenues of $1 million until repaired.

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Figure 10. Flood Zone from the FEMA Flood Maps

Damage Factor Considerations


Is the building / asset constructed using flood-resistant Yes
materials (concrete, ceramic, pressure-treated timber)?
Are electrical system components (circuit breakers, meters, Yes
outlets) raised off the floor at least above anticipated flood
depth?
Are all gas storage tanks and cylinders anchored? Not apply
Are all HVAC equipment located on an upper floor as Yes
opposed to at the basement level?
Does the building / asset have alternative power sources Yes
available if it loses power?
Are spare parts or critical equipment inventory available for Yes
use in the event of an attack / hazard?

Table 40. Damage Factor Considerations and Determination

Vulnerability
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CM Effectiveness V
Is the facility elevated above the flood zone? If yes, V =0 0
Is the facility located below the flood zone? If yes, V = 1
Do external flood barriers (dams) exist? If yes, V = 0.5 0
1 Is the building/asset constructed using flood-resistant Yes = 3, No = 0 3
materials (concrete, ceramic, pressure-treated timber)?
2 Are all finished floor located above basement level? Yes = 2, No = 0 0
3 Are sewer back-flow valves installed on drainage pipes? Yes = 2, No = 0 2
4 Does facility have sump pumps with emergency power? Yes = 2, No = 0 2
5 Is the building/asset sealed so that water cannot enter Yes = 2, No = 0 0
(“dry flood-proof”)?
Total V 7
Table 41. Countermeasures Effectiveness

1. Locate the vault site on the FEMA Map: Zone AE

2. Determine Expected 100-year flood depth: 18 inches

3. Determine the Damage Factor (DF): 0.2

4. Calculate Consequences: 0.2 * 13,000,000 + 1,000,000 = $3,600,000

5. Vulnerability: 0.2

6. Frequency of 100-year flood: 47%

7. Calculate Risk: R = C*V*F= 3,600,000*0.2*0.47 = $338,400/year

⚫ Tornadoes

(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) VSL =

$12.5M/person, and (d) VS Injuries = 30% VSL

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Avg. Avg.
Total
Number(N) Total Fatalities Fatalities VSL Injuries VS Injuries
Injuries
per Event per Event
EF1 7 0 0 $0 0 0 0
EF2 5 2 0.4 $0 40 8 0
EF3 0 0 0 $0 0 0 0
EF4 1 14 14 $0 270 270 0
EF5 0 0 0 $0 0 0 0
Table 42. Calculation for Tornado VSL & VSI
Countermeasures Effectiveness
Index Range
19. Foundation Ties 0
20. Roof Ties 2
21. Frame Connector Reinforcements 2
22. Reinforced Windows & Doors 3
23. Minimized Large Openings 3
24. Underground Construction 5
(Fully = 8; Partially = 5; Very Little = 0)
CM Effectiveness Index → 15

Threat Likelihood (T) = (N/R) x (AAA)/(Ac)


Threat
Consequences Vulnerability
Likelihood Risk
(C) (V)
(T)
EF1 $1M 0.2 0 $0.00
EF2 $41.2M 0.2 0.116781 $962,275.44
EF3 $7.5M 0.3 0 $0.00
EF4 $1.1963B 0.4 0.001562 $747,448.24
EF5 $10.1M 0.4 0 $0.00
Total Tornadoes Risk $1,709,723.68
Table 43. The Overall Risk

Dependency Threats Assessment

⚫ Loss of employees

To recruit a new employee, it costs $3,000 to promote the recruitment process, the loss of the

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revenue due to losing 1 employee is 10,000. We assume that the new call center’s retention

rate will be 40%.

Damage Factor Considerations


1 Salary arrears No
2 Unfriendly working environment Yes
3 Staff lunch is not provided Yes
4 Unclear job promotion system No
5 Pay lower than the market average No
6 Ignore conflict between colleagues Yes

Damage Factors
Most are 1
met or
don’t apply
Many are 0.7
met
Only a few 0.5
are met
Most are 0.3
not met
Table 44. Damage Factor Considerations

➔ Consequence (C) = Repair/Replacement cost ($) x DF + Lost Revenues

C = 3,000*0.5+10,000 = $11,500.

Vulnerability

According to the data analysis results in 2022, the average retention rate of call center in the

United States and the UK is 42% (DailyPay, 2023). Moreover, in general, the 30-45 percent

average yearly turnover rate for call centers has remained consistent over the previous few

years (Call Center Attrition, 2022).

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The equation of retention rates

EL
R= × 100
(OE + EE)/2

Where:

R = retention rates

EL = Employees who left

OE = Original # of employees

EE = # Employees at the end of year

Retention Rate Vulnerability


0~10% 0.3
11%~35% 0.5
36%~60% 0.7
>61% 1
Table 45. Vulnerability

V=0.7

Threat Likelihood

T = 40%.

Risk

R = C*V*T = 11500*0.7*0.4 = $3,220.

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Risk Management

The new countermeasure’s Rate of Return (ROR) = 20%

Site 1 – Livingston, MT

Table 46. Risk Assessment

1. Terrorist Attack – New Countermeasure: Infrared thermal image system. $6,000

The expected life of the Infrared thermal image system is 10 years.

The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14.

Figure 11. Mitigated Vulnerability System

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V= 0.6*0.95*0.5*0.3*0.2 = 0.0171

2. Earthquakes – New Countermeasure: Do not apply shock resistant window glass.

The Present Value (PV)= 0

V = 0.1

3. Tornadoes – New Countermeasure: Construction with Foundation Ties $ 20,000

The expected life of the Construction with Foundation Ties is 50 years.

The Present Value (PV) for the cost = $4,000.44

V = 0.1

4. Flooding – New Countermeasure:

Adjusting all floors located above basement level. $50,000

Let the building/asset is sealed so that water cannot enter. $50,000

The expected life of the Construction is 50 years.

The Present Value (PV) for the cost = $20,002.2

V = 0.01

5. Loss of employees – New Countermeasure:

Construct a new sport center for staff. $150,000

The expected life of the sport center is 50 years.

The Present Value (PV) for the cost = $30003.3

V=0.5

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Table 47. Level Assessment

Site 2 – Brunswick, GA

Table 48. Risk Assessment

1. Terrorist Attack – New Countermeasure: Infrared thermal image system. $6,000

The expected life of the Infrared thermal image system is 10 years.


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The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14

Figure 12. Mitigated Vulnerability System

V= 0.6*0.95*0.5*0.3*0.2 = 0.0171

2. Earthquakes – New Countermeasure: Do nothing, the Zone 1 Vulnerability is low enough,

if we invest more on the construction, it will not bring a significant impact.

The Present Value (PV)= 0

V=0.01

3. Tornadoes – New Countermeasure: Construction with Foundation Ties $ 20,000

The expected life of the Construction with Foundation Ties is 50 years.

V = 0.1

4. Flooding – New Countermeasure:

Adjusting all floors located above basement level. $50,000

Let the building/asset is sealed so that water cannot enter. $50,000

The expected life of the Construction is 50 years.


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The Present Value (PV) for the cost = $20002.2

5. Loss of employees: New Countermeasure:

Construct a new sport center for staff. $150,000

The expected life of the sport center is 50 years.

The Present Value (PV) for the cost = $30003.3

V=0.5

Table 49. Level Assessment

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Site 3 – Fort Smith, AK

Table 50. Risk Assessment

1. Terrorist Attack – New Countermeasure: Infrared thermal image system. $6,000

The expected life of the Infrared thermal image system is 10 years.

The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14

Figure 13. Mitigated Vulnerability System

V= 0.6*0.95*0.5*0.3*0.2 = 0.0171

2. Earthquakes – New Countermeasure: Do nothing, the Zone 1 Vulnerability is low enough,


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if we invest more on the construction, it will not bring a significant impact.

The Present Value (PV)= 0

V=0.01

3. Tornadoes – New Countermeasure: Construction with Foundation Ties $ 20,000

The expected life of the Construction with Foundation Ties is 50 years.

V = 0.1

4. Flooding – New Countermeasure:

Adjusting all floors located above basement level. $50,000

Let the building/asset is sealed so that water cannot enter. $50,000

The expected life of the Construction is 50 years.

The Present Value (PV) for the cost = $20002.2

5. Loss of employees: New Countermeasure:

Construct a new sport center for staff. $150,000

The expected life of the sport center is 50 years.

The Present Value (PV) for the cost = $30003.3

V=0.5

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Table 51. Level Assessment

Conclusion

Based on the Risk assessment results of the threats in each possible construction site, the

three sites proposed for consideration are Livingston, MT, Brunswick, GA, and Fort Smith, AK

in that order. First of all, Livingston is a perfect construction site for the call center, especially

since there are already existing a lot of industrial buildings, it might be helpful and with

enhanced efficiency while conducting the construction with experienced contractors. In

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addition, Brunswick is also recommended to become the site for the new center. Although the

risk is still a little different from Livingston, MT, due to the characteristic of the location near

the coast, it is a perfect option for the company if they have any demand for importing or

exporting products from the new center. Lastly, Fort Smith, AK has the highest risk compared

to the others. According to historical data, natural threats such as tornadoes have been

threatening the city and bringing significant impact. It is the worst option within three

construction sites.

Reference

DailyPay. (2023, February 13). Call Center Turnover Statistics In 2022. DailyPay.

https://www.dailypay.com/resource-center/blog/turnover-statistics-contact-centers/

Call Center Attrition: Mitigate Employee Turnover. (2022, February 20). TechSee.

https://techsee.me/blog/call-center-attrition-rate-problem-symptoms-cure/

Binning, D. (2023, April 10). Probability-based Risk Assessment.

Binning, D. (2023, April 17). Probability-based Risk Assessment (Random Threats).

Binning, D. (2023, May 1). Risk Management.

Human Face Measurement Monitoring Thermal Camera Body Temperature. (n.d.). EBay. Retrieved

May 15, 2023, from https://www.ebay.com/itm/193766641242

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