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Yu Cheng Risk Assessment Report
Yu Cheng Risk Assessment Report
15 May 2023
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
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
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
1. Earthquakes
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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
iron pipe
Effectiveness Index
Sum the existing Seismic countermeasure indices for overall effectiveness
Table 3. Seismic Vulnerabilities
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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)
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
Consequence
The columns (with yellow color) including Number, Total Fatalities, and Total Injuries will
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
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
T = (N/R) x (AAA)/(Ac)
Where:
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R = Years of record
R= C*V*T
3. Flooding
Firstly, the cost of the property, and the revenue lost during the repair will be defined.
Consequences
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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
Threat Likelihood
The threat likelihood will be calculated by the data from National Oceanic and Atmospheric
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
⚫ 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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Consequence
The repair cost of the telecommunication system will be estimated at $1 million, and the loss
3 1
6 0.7
8 0.5
10 0.3
Vulnerability
Threat likelihood
2/365 = 0.005
R=C*V*T
R = 800,000*0.0285*0.005 = $114
⚫ Earthquake
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• Vulnerability(V): 0.3
0.01/50=0.0002
Lost
Zone Cost(M) DF Consequences(M) V T Risk
Revenue(M)
⚫ Tornadoes
(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) VSL =
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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
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
EF3 73 0 0 0 0 0 0
EF4 73 0 0 0 0 0 0
EF5 73 0 0 0 0 0 0
⚫ Flooding
The loss of this center will result in lost revenues of $1 million until repaired.
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Consequences
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
5. Vulnerability: 0.2
⚫ 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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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
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
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EL
R= × 100
(OE + EE)/2
Where:
R = retention rates
OE = Original # of employees
V=0.7
Threat Likelihood
T = 40%.
Risk
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
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
⚫ 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
Consequence
The repair cost of the telecommunication system will be estimated at $1 million, and the loss
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3 1
6 0.7
8 0.5
10 0.3
Vulnerability
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Threat likelihood
2/365 = 0.005
Risk
⚫ Earthquake
• Vulnerability(V): 0.1
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0.01/50=0.0002
Lost
Zone Cost(M) DF Consequences(C) V T Risk
Revenue(M)
⚫ Flooding
The loss of this center will result in lost revenues of $1 million until repaired.
Consequences
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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 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
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5. Vulnerability: 0.2
⚫ Tornadoes
(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) 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
⚫ 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
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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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
EL
R= × 100
(OE + EE)/2
Where:
R = retention rates
OE = Original # of employees
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
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
⚫ 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
Consequence
The repair cost of the telecommunication system will be estimated at $1 million, and the loss
3 1
6 0.7
8 0.5
10 0.3
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Vulnerability
Threat likelihood
2/365 = 0.005
Risk
⚫ Earthquake
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• Vulnerability(V): 0.1
T= 0.01/50 = 0.0002
Lost
Zone Cost(M) DF Consequences(C) V T Risk
Revenue(M)
⚫ Flooding
The loss of this center will result in lost revenues of $1 million until repaired.
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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
5. Vulnerability: 0.2
⚫ Tornadoes
(a) the call center is worth $13 million, (b) revenue lost during repair is $1M, (c) 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
⚫ 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
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
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
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EL
R= × 100
(OE + EE)/2
Where:
R = retention rates
OE = Original # of employees
V=0.7
Threat Likelihood
T = 40%.
Risk
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Risk Management
Site 1 – Livingston, MT
The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14.
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V= 0.6*0.95*0.5*0.3*0.2 = 0.0171
V = 0.1
V = 0.1
V = 0.01
V=0.5
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Site 2 – Brunswick, GA
The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14
V= 0.6*0.95*0.5*0.3*0.2 = 0.0171
V=0.01
V = 0.1
V=0.5
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The Present Value (PV) for the cost of the Infrared thermal image system = $1431.14
V= 0.6*0.95*0.5*0.3*0.2 = 0.0171
V=0.01
V = 0.1
V=0.5
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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
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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/
Human Face Measurement Monitoring Thermal Camera Body Temperature. (n.d.). EBay. Retrieved
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