ABSTRACT

Terrorism Relative-Risk Model ...............................................................................21 What Is the Question? .............................................................................................22 Building the Contributing-Factor Diagram for the Relative-Ranking

Terrorist-Threat Risk Model ...............................................................................23 Category Weights.....................................................................................................27 Relative-Risk Model Equations...............................................................................28 Relative-Risk Model Applied to Terrorist Organization #1....................................29 Relative-Risk Model Results from Evaluation of Terrorist Organization #1.........37 Relative-Risk Model Applied to Terrorist Organization #2....................................39 Relative-Risk Model Results from Evaluation of Terrorist Organization #2.........48 Comparison of the Two Terrorist Organizations.....................................................49 Building the Terrorism Absolute-Cost Risk Model ................................................53 Absolute-Cost Risk Model Equations.....................................................................55 Application of the Absolute-Cost Risk Model to Terrorist Organization #2 .........55 Absolute-Cost Risk Model Results for Evaluation of Terrorist

Organization #2...................................................................................................61 So, So What? ...........................................................................................................62

Corporations and governments around the world realize that today’s business and political environment is global. It is typical and necessary to do business in and with foreign countries that represent the entire spectrum of industrial, economic, and social development. Unfortunately, one of the concerns that must be addressed and understood when considering global entanglements is the level of threat represented by terrorist activities in the part of the world being considered.