Broder: Risk Analysis and the Security Survey, 4th Edition - Case Studies with Questions and Answers

Case Studies with Questions and Answers

Chapter 13: Mitigation and Preparedness

During your business impact analysis, you identify that one of your office buildings next to a small river is located about five miles below an earthen dam that was constructed about one hundred years ago and recent geological reports indicate a degree of weakening. Your company owns the building and sub-leases 100,000 square feet at $2.25 per square foot. Your company occupies 85,000 square feet. The value of your equipment located in the building is $4,250,000 and the combined salaries total about $7,650,000. Revenue produced last year for this facility was $20,000,000. New building construction averages about 6 months to complete at a cost of $5.50 per square foot.

Questions

Justify the mitigation solutions you would recommend.

Correct Answer

There are many solutions or approaches to this problem. History has shown, especially in areas at high risk from earthquake, heavy rain and ice, that earthen dams, once weakened, are prone to sudden catastrophic rupture. A diversion dam or other type of diversion near the facility would likely be ineffective. Probably the best solution is to recommend that the property be sold and the company relocate operations elsewhere. This could be in a newly constructed building or one that is leased. In their justification, they should explain the rationale for their solution, and include a cost comparison of the potential loss versus the cost to relocate, rebuild, moving costs and other costs. The costs could include liability for employee injury, lost revenue, etc. If moving to a temporary location, they should include costs to move to the permanent location.