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The Science and Technology of Counterterrorism by Carl Young

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Chapter 1

Terrorism Threats, Risk, and Risk Assessments

1.1 Introduction: Decisions and Risk

Risk management has an image problem. There seems to be a never-ending stream of headlines about some corporate misstep resulting in billions of dollars in losses that is blamed on poor risk management. We typically only hear about the significant transgressions since big losses and major tragedies make news. The fact is that every financial transaction with a buyer and a seller has a winner and a loser. Therefore, gains and losses are happening all the time. Risk management is presumably at work with little notice until an issue becomes public.

Significant losses often point to a disregard for existing risk management processes rather than flaws in the process ...

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