Risk-based methodology for assessing and managing the severity of a terrorist attack

Terrorist attacks on a physical site can be detrimental in terms of lives and monetary loss. A major component of preparing for such an attack is deciding how to allocate funds; insufficient budgeting may expose the site to worst-case consequences, whereas over-budgeting may create inefficiency. Thus deciding how many funds to allocate for attack preparation should incorporate information regarding the anticipated severity of the terrorist attack.