16 February 2004

Terrorism and Preparedness for Real Estate Finance & Critical Infrastructure

The Real Estate Investment Trust (REIT) industry, building owners and managers including the commercial real estate portfolios of the real estate finance business are responding to the A.M. Best Company requests for the Supplemental Rating Questionnaire (SRQ) from their insurers. Critical Infrastructure Protection is vital to a comprehensive risk management strategy and insurers are being asked to model terrorism attack scenarios to high exposure targets. Managing the risk of property and workers comp losses must be addressed with the mindset that they can be correlated with specific types of terrorist threats.

The real estate finance industry requires proven solutions and tools for the evaluation of building threat/hazard/vulnerability assessments and the evaluation of physical and operational measures for Terrorism Risk.

1SecureAudit Terrorism and Preparedness Solutions include:

* Rapid screening methods for the evaluation of portfolio properties

* Detailed guidelines for mitigation and due diligence on individual infrastructures

* Legally accepted standards for risk reduction measures and management practices related to terrorism risk.

“We solve the problem for real estate owners and financiers who are required to provide terrorism risk models for their insurers and board of directors,” said Peter L. Higgins, Managing Director of 1SecureAudit LLC. “Our proven combination of services, Commercial-Off-The-Shelf (COTS) software and business audit solutions answers the requirements for comprehensive Business Crisis and Continuity Management in the building owners and REIT industry.”

“REITs invest in a variety of commercial property types: shopping centers, apartments, warehouses, office buildings, hotels, and others. Some REITs specialize in one property type only, such as shopping malls, self-storage facilities or factory outlet stores. Health care REITs specialize in health care facilities, including acute care, rehabilitation and psychiatric hospitals, medical office buildings, nursing homes and assisted living centers. Some REITs invest throughout the country or in certain other countries. Others specialize in one region only, or even a single metropolitan area."

1SecureAudit Terrorism Risk Solutions utilize Five Factor Antiterrorism analysis supported by an XML Risk-Based Decision Support System. This system applies a knowledge-based Bayesian network to allow users to combine intelligence from analytic models, simulations, historical data and user judgments. This provides a customizable software system designed to assist both Antiterrorism and Counterterrorism planners to draw inferences about the risk of potential terrorist attack. This enables you to deter, defend and defeat plots against your organization and it's most vital assets. This tool, based on government and commercial best practices augments the expertise of the auditor by providing simulation scenarios and weapon effects, intelligence to predict threat likelihood and the integration with asset management and security planning modules.

In light of current insurance and regulatory scrutiny, 1SecureAudit solutions provide systematic due diligence that results in more effective selection of mitigation measures that insurance companies see as having the greatest cost benefit for reducing risk.

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