Risk Based Decision Making
R = P x C where:
R = risk score for given security breach
P = probability of a security breach further
    defined as threat times vulnerability (T x V)
C = all consequences of a security breach
The terrorist attacks of September 11, 2001, were not only the most devastating terror attacks in history in terms of loss of life - they also had far reaching economic and financial implications. Private insurers and their reinsures ultimately paid well in excess of $40 billion in claims, making that tragic event by far the largest single catastrophic loss the global insurance industry has suffered in its history.
As an immediate result, most insurers and reinsures took measures to significantly limit their possible exposure to losses from a subsequent terrorist attack, by raising the cost of terror insurance policies through the roof without using tangible yardsticks to accurately measure the true risk of terror that specific insured parties faced.
In turn, project-financing corporate management became very burdensome, threatening the construction industry and ultimately the global economy.
In response, governments passed the Terrorism Risk Insurance Acts that created a temporary program to support the "growth and stability of the market for private insurance against losses from terrorist attacks”. These Acts provided excess-of-loss reinsurance to insurers. However, the fundamental predicament of accurately assessing the risk of terror was not solved.
ASI Ltd., with the assistance and close guidance of international insurance experts, has developed a proven terrorism risk insurance methodology that provides a quantitative and qualitative tool for insurance policy purposes.
ASI's terror risk insurance assessments save corporations significant insurance expenses by assessing the company's true risk and recommending mitigation strategies, if required, that can reduce risks and costs.