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Risk Measurement
‘‘Risk can not always be eliminated. Properly identified, however, it can
usually be managed.’’
—Risk Assessment Guidelines, General Security, ASIS International, 2003
Risk measurement (qu antification) is an essential element for later use in determining
the impact (cost) of an unfavorabl e event on the enterprise. It can also aid in predicting
how often such an event may occur in a given period of time. Two necessities fo r
performing risk measurement and quantification are a quantitative means of expressing
potential cost and a logical expression of frequency of occurrence. Both must admit low as
well as high frequen cies of event ...