Unit II: Asset Value Assessment 

Unit II 

COURSE TITLE Building Design for Homeland Security TIME 75 minutes 

UNIT TITLE Asset Value Assessment 

OBJECTIVES 1. Identify the assets of a building or site that can be affected by a 
threat or hazard 

2. 
Explain the components used to determine the value of an asset 
3. 
Determine the critical assets of a building or site 
4. 
Provide a numerical rating for the asset and justify the basis for the 
rating 


SCOPE The following topics will be covered in this unit: 

1. 
The core functions and critical infrastructure listed on the threat-
vulnerability matrix. 
2. 
Various approaches to determine asset value – FEMA, Department 
of Defense, Department of Justice, and Veterans Affairs. 
3. 
A rating scale and how to use it to determine an asset value. 
4. 
Activity: Identify the assets to consider in the Case Study and 
determine the asset value for each asset of interest. 


REFERENCES 1. FEMA 426, Reference Manual to Mitigate Potential Terrorist 
Attacks Against Buildings, pages 1-10 to 1-14 

2. 
FEMA 452, Risk Assessment: A How-To Guide to Mitigate 
Potential Terrorist Attacks Against Buildings, pages 2-1 to 2-26 
3. 
Case Study – Appendix S: Suburban, Hazardville Information 
Company 
4. 
Student Manual, Unit II (S) (info only – not in SM) 
5. 
Unit II (S) visuals (info only – not in SM) 


REQUIREMENTS 1. FEMA 426, Reference Manual to Mitigate Potential Terrorist 
Attacks Against Buildings (one per student) 

2. 
FEMA 452, Risk Assessment: A How-To Guide to Mitigate 
Potential Terrorist Attacks Against Buildings (one per student) 
3. 
Instructor Guide, Unit II 
4. 
Student Manual Suburban Case Study (one per student) 
5. 
Overhead projector or computer display unit 


IG II-1 



Unit II 

6. 
Unit II visuals 
7. 
Risk Matrix poster and box of dry-erase markers (one per team) 
8. 
Chart paper, easel, and markers (one per team) 


UNIT II (S) OUTLINE Time Page 

II. Asset Value Assessment 75 minutes IG II-1 

1. 
Unit Objectives and Assessment Process 10 minutes IG II-5 
2. 
Identification of Assets 5 minutes IG II-7 
3. 
Asset Value Rating 10 minutes IG II-8 
4. 
Summary and Student Activity 5 minutes IG II-11 
5. 
Activity: Asset Value Ratings 45 minutes IG II-A-13 
(Version A Suburban) 
[35 minutes for students, 10 minutes for instructor review] 
6. 
Activity: Asset Value Ratings 45 minutes IG-II-B-19 
(Version B Urban) 
[35 minutes for students, 10 minutes for instructor review] 


PREPARING TO TEACH THIS UNIT 

• 
Tailoring Content to the Local Area: This is a generic instruction unit that does not have 
any specific capability for linking to the Local Area. However, Local Area discussion may 
be generated as students have specific situations for which they would like to determine asset 
value. Also, the determination of asset value rating is subjective because this course was 
designed for small organizations with few decision makers or levels of decision making. 
Large organizations would need a more objective approach to asset value rating so that the 
ratings of different people would be comparable, which does not occur in small 
organizations. 
• 
Optional Activity: There are no optional activities in this unit. 
• 
Activity: The students will apply the techniques of asset identification and asset value rating 
to the Case Study in order to identify and rate the assets found in the Case Study. The 
students will have to quickly scan the Case Study information with the specific intent of 
determining assets and their value to the organization. Reading the selected Case Study prior 
to the class greatly helps in performing this activity. 
• 
Refer students to their Student Manuals for worksheets and activities. 



Unit II 

• 
Direct students to the appropriate page (Unit #) in the Student Manual. 
• 
Instruct the students to read the activity instructions found in the Student Manual. Note that 
this Student Activity provides asset value ratings that the students must determine agreement 
with and rationale for the given asset value rating. 
• 
Explain that the asset value ratings determined by the team must be transferred to the Risk 
Matrix poster. 
• 
Tell students how long they have to work on the requirements. 
• 
While students are working, all instructors should closely observe the groups’ process and 
progress. If any groups are struggling, immediately assist them by clarifying the assignment 
and providing as much help as is necessary for the groups to complete the requirement in the 
allotted time. Also, monitor each group for full participation of all members. For example, 
ask any student who is not fully engaged a question that requires his/her viewpoint to be 
presented to the group. 
• 
At the end of the working period, reconvene the class. 
• 
After the students have completed the assignment, “walk through” the activity with the 
students during the plenary session. Call on different teams to provide the answer(s) for each 
question. Then simply ask if anyone disagrees. If the answer is correct and no one disagrees, 
state that the answer is correct and move on to the next requirement. If there is disagreement, 
allow some discussion of rationale, provide the “school solution” and move on. 
• 
If time is short, simply provide the “school solution” and ask for questions. Do not end the 
activity without ensuring that students know if their answers are correct or at least on the 
right track. 
• 
Ask for and answer questions. 



Unit II 

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Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

VISUAL II-1 


BUILDING DESIGN FOR HOMELAND SECURITY 

Unit II
Asset Value Assessment



VISUAL II-2 


Unit Objectives 

Identify the assets of a building or site that can be 
affected by a threat or hazard. 

Explain the components used to determine the value of 
an asset. 

Determine the critical assets of a building or site. 

Provide a numerical rating for the asset and justify the 
basis for the rating. 


BUILDING DESIGN FOR HOMELAND SECURITY Unit II-2 

Introduction and Unit Overview 

This is Unit II, Asset Value Assessment. 
This section will describe how to perform an 
asset value assessment (the first step in the 
assessment process), to identify people and 
asset values categorized as core functions 
and core infrastructure. Key to this process 
is interviewing stakeholders including 
owners, facility staff, and tenants. 

Unit Objectives 

At the end of this unit, the students should 
be able to: 

1. 
Identify the assets of a building or site 
that can be affected by a threat or 
hazard. 
2. 
Explain the components used to 
determine the value of an asset. 
3. 
Determine the critical assets of a 
building or site. 
4. 
Provide a numerical rating for the asset 
and justify the basis for the rating. 



Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

VISUAL II-3 


BUILDING DESIGN FOR HOMELAND SECURITY Unit II-3 
Assessment Flow Chart 
cti . ) 
ti .) rs ) 
ti 
l i 
i ent) 
cti . 
l i 
ti f t t iti it 
lti t l i 
l i 
ti l lit 
l i 
FEMA 426, Figure 1-3: The Assessment Process Model, p. 1-5 
VISUAL II-4 


Definition of Risk 

Risk is a combination 
of: 

. 
The probability that 
an event will occur,
and 
. 
The consequences
of its occurrence



Asset -A resource of value requiring protection. An asset 
can be tangible, such as buildings, facilities, equipment, 
activities, operations, and information; or intangible, such as 
processes or a company’s information and reputation. 

FEMA 426, Table 1-19: Total Risk Color Code, p. 1-38 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-4 

Assessment Flow Chart 

Reviewing the Assessment Flow Chart, the 
first step in the risk assessment process is to 
determine asset value. 

An asset is anything you want to protect 
because of its value, its need to maintain 
business continuity, and/or its difficulty in 
replacing within a required timeline. 

Risk 

Risk can be defined as the potential for loss 
of or damage to an asset. It takes into 
account the value of an asset, the threats or 
hazards that potentially impact the asset, 
and the vulnerability of the asset to the 
threat or hazard. 

Values can be assigned to these three 
components of risk to provide a risk rating. 

In general terms, asset value can be 
considered the replacement cost for 
infrastructure and equipment. It can include 
lost profit to a business or lost capability to a 
mission that results in greater damage and 
loss to that asset and other assets. 


Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

VISUAL II-5 


BUILDING DESIGN FOR HOMELAND SECURITY Unit II-5 
People and Asset Value 
Asset Value -The degree of debilitating 
impact that would be caused by the 
incapacity or destruction of an asset. 
Exam Questions #A1 and B2 

VISUAL II-6 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-6 
Identification of a Building’s Assets 
Two Step Process 
Step 1: Define and understand 
a building’s core functions and 
processes 
Step 2: Identify site and building 
infrastructure and systems 
Exam Questions #A2 and B1 

People and Asset Value 

Understanding asset criticality is comparable 
to strategic planning in that the building 
owner should understand the mission of the 
organization, the resources that are used to 
perform that mission, how those resources 
interface with one another to achieve goals, 
and how the organization would cope or 
maintain business continuity if the asset(s) 
were lost. 

People are a building’s most critical asset. 

Identification of a Building’s Assets 

Identifying a building’s critical assets is 
accomplished in a two-step process. 

Step 1: Define and understand a building’s 
core functions and processes. 

Step 2: Identify site and building 
infrastructure and systems: 

• 
Critical components/assets 
• 
Critical information systems and data 
• 
Life safety systems and safe haven areas 
• 
Security areas 



Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

VISUAL II-7 


Asset Value 

Core Functions 

. 
Primary services or outputs
. 
Critical activities 
. 
Identify customers 
. 
Inputs from external organizations 


Critical Infrastructure 

. 
Injuries or deaths related to lifelines 
. 
Effect on core functions 
. 
Existence of backups 
. 
Availability of replacements 
. 
Critical support lifelines 



BUILDING DESIGN FOR HOMELAND SECURITY Unit II-7 

. Critical or sensitive information 

VISUAL II-8 


BUILDING DESIGN FOR HOMELAND SECURITY Unit II-8 
Asset Value Rating 
FEMA 426, Adaptation of Table 1-1: Asset Value Scale, p. 1-13 
Key elementsKey elements
..Loss of assets and/or people wouldLoss of assets and/or people would 
have grave, serious, moderate, ohave grave, serious, moderate, or 
negligible consequences or impacnegligible consequences or impact
Asset Value 

The objective in the initial step is to 
determine the core functions for the building 
that will enable it to continue to operate or 
provide services after an attack. This focuses 
the assessment team on the key areas of the 
building. Factors include: 

• 
What are the primary services? 
• 
What critical activities take place at the 
building? 
• 
Who are the building’s occupants and 
visitors? 
To help evaluate and rank critical 
infrastructure, consider the following factors: 


• 
Injuries or deaths related to critical 
infrastructure damage 
• 
Effect on core functions 
• 
Existence of backups, systems redundancy 
• 
Availability of replacements 
• 
Critical support lifelines 
• 
Critical or sensitive information 


Quantifying Asset Value 

After a building’s assets requiring protection 
have been identified, they are assigned a 
value. The asset value is the degree of 
debilitating impact that would be caused by 
the incapacity or destruction of the 
building’s assets. 

FEMA 426 uses a combination of a seven-
level linguistic scale and a ten-point numeric 
scale. 

• Very High – Loss or damage of the asset 
would have exceptionally grave 
consequences, such as extensive loss of 
life, widespread severe injuries, or total 
loss of primary services, core processes, 
and functions. 


Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-9 
Asset Value Rating (continued) 
FEMA 426, Adaptation of Table 1-1: Asset Value Scale, p. 1-13 
Key elementsKey elements
..Loss of assets and/or people wouldLoss of assets and/or people would 
have grave, serious, moderate, ohave grave, serious, moderate, or 
negligible consequences or impacnegligible consequences or impact
VISUAL II-9 


VISUAL II-10 


• 
High – Loss or damage of the asset 
would have grave consequences, such as 
loss of life, severe injuries, and loss of 
primary services. 
• 
Medium High – Loss or damage of the 
asset would have serious consequences, 
such as serious injuries, or impairment of 
core processes and functions for an 
extended period of time. 


Quantifying Asset Value (continued) 

At the other end of the scale we have: 

• 
Medium – Loss or damage of the asset 
would have moderate to serious 
consequences. 
• 
Medium Low – Loss or damage of the 
asset would have moderate consequences, 
such as minor injuries, or minor 
impairment of core functions and 
processes. 
• 
Low – Loss or damage of the asset would 
have minor consequences or impact. 
• 
Very Low – Loss or damage of the asset 
would have negligible consequences or 
impact. 


Asset Value Notional Example 

The key assets for this notional example by 
system are listed and an asset value rating is 
entered into the site critical infrastructures 
matrix. 

HVAC mechanical systems in most 
buildings will likely be medium high (7). 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-10 
Asset Value Notional Example 
FEMA 426, Table 1-2: Nominal Building Asset Value Assessment, p. 1-14 

Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

VISUAL II-11 


Critical Functions 

Asset Value 
Administration 
Function 
5 
Cyber attack 
5 
Armed attack 
(single gunman) 
5 
Vehicle 
bomb 
5 
CBR attack 
Threat Rating 
Engineering 
Vulnerability Rating 
Asset Value 8 8 8 8 
Threat Rating 
Vulnerability Rating 


FEMA 426, Adaptation of Table 1-20: Site Functional Pre-Assessment 
Screening Matrix, p. 1-38 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-11 

Note: The Asset Value under the 
Administration and Engineering functions is 
highlighted. A medium value rating (6) is 
assigned to the Administration function asset 
value because they are a small part of the total 
organization, but important to the organization 
for continuity of business and profit. A high 
Asset Value rating (8) was assigned for the 
Engineering Function as they account for over 
half of the organization and are considered the 
core of the business for the company. 

VISUAL II-12 

Critical Infrastructure 

Asset Value 
Site 
Infrastructure 
4 
Cyber attack 
4 
Armed attack 
(single gunman) 
4 
Vehicle 
bomb 
4 
CBR attack 
Threat Rating 
Asset Value 
Structural Systems 
Vulnerability Rating 
8 8 8 8 
Vulnerability Rating 
Threat Rating 


FEMA 426, Adaptation of Table 1-21: Site Infrastructure Systems 
Pre-Assessment Screening Matrix, p. 1-39 

BUILDING DESIGN FOR HOMELAND SECURITY Unit II-12 

Critical Functions Matrix 

List functions down the left side and threats 
across the top. 

In general, the asset value for a given 
function is the same for all threats and the 
matrix helps to identify the primary 
functions in a quantitative form. The 
functions matrix is people oriented and is 
subjective, but the completed matrix should 
provide a guide to vulnerabilities and risks. 
An organization with few administrative 
staff, but with a large engineering group, is 
used in this example. 

Note the value is the same for all threat 
pairs. It does not matter how the asset is 
lost. The asset value reflects the impact to 
the people and organization should the asset 
be lost, damaged, or degraded. 

Critical Infrastructure Matrix 

List infrastructure down the left side and 
threats across the top. 

Note that the value is the same for all threat 
pairs to reflect the economic and 
organization impact losses that could occur 
over time should the critical infrastructure 
be lost, degraded, or damaged due to any 
threat tactic. 


Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

Note: The Asset Value rating under the Site 
and Structural Systems is highlighted. A 
medium low Asset Value rating (4) could be an 
initial value for a site infrastructure that has a 
well-defined and protected perimeter and 
economic replacement costs that are 
acceptable. A high Asset Value rating (8) 
could be an initial value for a Structural System 
in a multi-story that is subject to progressive 
collapse and cannot be replaced. 

VISUAL II-13 

Summary 

Identify a building’s Critical 
Functions and Critical 
Infrastructure 

Assign a value to a building’s 
assets or resources 

Input values into the Critical 
Functions and Critical 
Infrastructure Matrices 


BUILDING DESIGN FOR HOMELAND SECURITY Unit II-13 
VISUAL II-14 


Unit II Case Study Activity 

Asset Value Ratings 

Background 

Asset value: degree of debilitating impact that would becaused by the incapacity or destruction of a building’s assets 

FEMA 426: Tables 1-1 and 1-2 

Requirements 

Refer to Case Study and answer worksheet questions: 

. 
Identify Core Functions 
. 
Identify Building Assets 



BUILDING DESIGN FOR HOMELAND SECURITY Unit II-14 

. Quantify Asset Values 

Refer participants to FEMA 426 and the Unit 

Summary 

• 
Identify a building’s Critical Functions 
and Critical Infrastructure 
• 
Assign a value to a building’s assets or 
resources 
• 
Insert values into the Critical Functions 
and the Critical Infrastructure Matrices 
[Risk Matrix poster, manual spreadsheet, 
electronic spreadsheet, or risk assessment 
database] 


Student Activity 

Asset value is the degree of debilitating 
impact that would be caused by the 
incapacity or destruction of a building’s 
assets. 

• 
Table 1-1 on Page 1-13 of FEMA 426 
provides an Asset Value Scale to 
quantify asset value, as well as 
definitions of the ratings. 
• 
Table 1-2 on page 1-14 of FEMA 426 


provides a format to summarize the 
value of the major categories of a 
building’s assets. 

Activity Requirements 


Unit II: Asset Value Assessment 

INSTRUCTOR NOTES CONTENT/ACTIVITY 

II Student Activity for the Selected Case Study 
(A or B) in the Student Manual. 

Members of the instructor staff should be 
available to answer questions and assist groups 
as needed. 

At the end of 35 minutes, reconvene the class 
and facilitate group reporting. 

Allow 10 minutes for the plenary session. 

Keep in mind that there are no incorrect 
answers. It is more important to be able to 
clearly explain and support the underlying 
rationale for the values that have been 
assigned. Also it has been proven that 7 people 
working effectively as a group can achieve 
genius level in their consensus response. 

• Working in previously assigned small 
groups, refer to the Case Study Student 
Activity (Version A for Suburban or 
Version B for Urban) and answer the 
worksheet questions. 

Take 35 minutes to complete this activity. 
Solutions will be reviewed in plenary group. 

Transition 

Unit III will cover Threat / Hazard 
Assessment and Unit IV will cover 
Vulnerability Assessment to continue the 
risk assessment process. 


UNIT II-A CASE STUDY ACTIVITY: 
ASSET VALUE RATINGS 
(Suburban Version) 

Asset value is the degree of debilitating impact that would be caused by the incapacity or 
destruction of a building’s assets. Page 1-13 of FEMA 426 provides an Asset Value Scale 
(Table 1-1) to quantify asset value, as well as definitions of the ratings. Table 1-2 on page 1-14 
of FEMA 426 provides a format to summarize the value of the major categories of a building’s 
assets. FEMA 452, pages 2-17 to 2-19 provide additional information. 

Requirements 

Refer to the Appendix S Case Study to determine answers to the following questions: 

The first question below has the answer provided as an example. The other questions have the 
pages identified where the answers may be found. 

Identifying Building Core Functions 

1. What are Hazardville Information Company’s (HIC) primary services or outputs? 
[Page A-1] 

IT services support for over 20 private and government organizations/clients. HIC 
supports over 1,000 users and over 100 applications as a primary data center and as a 
disaster recovery backup site to include field technicians and help desk. Many clients 
depend on HIC’s ability to provide real time IT support, on a 24 x 7 basis. Others rely 
on the company’s IT backup services. 

2. What critical functions/activities take place at HIC? [Page A-23 to Page A-26] 

Computer-based data processing, storage, and disaster recovery. Wired/wireless 
networking, information technology and communications. 

3. Who are the building’s occupants and visitors? [Page A-1 to Page A-2] 

HIC employees and clients; business park neighbors are a mix of government and 
commercial organizations. HIC has over 130 employees and approximately 80 to 100 
employees in the building at any given time. Visitors are vendors and clients. Clients 
include Fortune 500 companies, national and regional banks and credit unions, a 
major airline, large prime defense contractors, and government agencies, including 
one classified client. 

4. What inputs from external organizations are required for HIC’s success? [Page A-1 to Page 
A-2 and Page A-11 to Page A-26] 


Utilities and communications supplies/vendors; hardware and software applications 
vendors; client data and support. 

Identifying Building Assets and Quantifying Asset Value Ratings 

Use the following process to complete the following tables -- HIC Critical Functions Asset Value 
Ratings and HIC Critical Infrastructure Asset Value Ratings 

1. Refer to Table 1-1 in FEMA 426 and the associated value descriptions for the ratings 
listed below 

• 
Very High (10) 
• 
High (8-9) 
• 
Medium High (7) 
• 
Medium (5-6) 
• 
Medium Low (4) 
• 
Low (2-3) 
• 
Very Low (1) 


2. 
Consider the questions on page 1-11 in FEMA 426 as you rate HIC’s assets. 
3. 
Refer to Table 1-2 in FEMA 426, Nominal Building Asset Value Assessment and 
use the descriptions of these asset categories as found in the Appendix S Case Study to 
focus the rating. Another approach is to use an asset value rating of 5 (mid-range) and 
do a pair-wise comparison to each asset category as the process continues, raising or 
lowering the rating from 5 as the team compares asset value inputs collected from the 
Appendix S Case Study. 


NOTE 1: The first two rows in both tables are completed as examples. Nominal ratings are 
provided in all other asset categories. 

1. 
Confirm the team’s Asset Value Rating for each category [agree, raise, or lower 
the indicated rating] 
2. 
Provide Rationale for each rating [whether changed or unchanged] 
3. 
Enter asset value rating on the Risk Matrix 


NOTE 2: Consult Table 1-22, pages 1-46 to 1-92, in FEMA 426. Look at the content of the 
questions to understand the various infrastructure asset categories. 
For example, Utility Systems apply to all utilities outside the 3-foot drip line of the 
building (from the source to the building, but primarily on the site), while 
Mechanical, Plumbing, Gas, Electrical, Fire Alarm, Communications, and 
Information Technology Systems are inside the 3-foot drip line of the building. 


HIC Critical Functions Asset Value Ratings 

Asset Value 
Numeric 
Value Rationale 
1. Administration Medium-Low 4 Redundancy and staff skills that can be 
replaced. Senior managers and 
financial systems in the same area 
increase value. Low to medium 
economic cost to replace. Can impair in 
the long term core functions and 
processes. 
2. Engineering / IT 
Technicians 
High 8 Staff skills require specialized 
expertise, but can be replaced. Key 
equipment and resources needed for 
24/7 ops. High economic cost to 
replace. Can impact core functions and 
processes for extended period of time. 
3. Loading Dock / 
Warehouse 
Medium-Low 4 Single point of entry into the interior 
for major shipping and receiving. Low 
to medium economic cost to replace. 
Can use other entryways in interim for 
most items. Minor impairment of core 
functions and processes. 
4. Data Center Very High 10 Primary function and organization 
critical. Many key staff and critical 
equipment. Very high economic cost to 
replace. Vital for 24/7 operation. Total 
loss of primary services, core 
processes, and functions possible. 
5. Communications High 9 Primary function and organization 
critical. A few key staff and critical 
equipment. High economic cost to 
replace. Needed for 24/7 operation. 
Major affect on primary services and 
core functions and processes for 
extended period of time. 
6. Security Medium High 7 Access and monitoring systems, 
security records, and location make 
the function critical to the 
organization. Needed due to client 
requirements. Medium economic cost 
to replace. Serious impairment of 


HIC Critical Infrastructure Asset Value Ratings 

primary services, core processes, and 
functions for extended period of time. 
7. Housekeeping Very Low 1 Easily replaced, no critical skills or 
equipment. Minimal cost to replace. 
Many workarounds, thus negligible 
consequences or impact. 

Asset Value Numeric 
Value 
Rationale 
1. Site Medium-Low 4 HIC does not own building or site, but 
location is critical to access and support 
to clients. Cost is $10 - $20 per square 
foot which indicates other office 
complexes in area are competitive. 
Moderate consequences or minor 
impairment of core processes and 
functions if must move from site. 
2. Architectural Medium 5 Signage and business office information 
couple the building to other park tenants 
(geographically clustered, centralized). 
Nothing overly descriptive that requires 
the use of this building, but moderate to 
severe consequences or impairment if 
lost. Limited architectural flexibility 
either exterior or interior. 
3. Structural 
Systems 
Medium-Low 4 Relatively strong and flexible two-story 
building using standard construction 
will not experience progressive collapse. 
Building is small enough that anything 
affecting the structural system is 
affecting all other systems to a greater 
extent. Loss of structural systems will 
have moderate consequences or minor 
impairment of core functions and 
processes. Walls are capable of bearing 
load and workarounds available 
(shoring) if any structural problem 
occurs. 


4. Envelope 
Systems 
Medium 5 Fairly tight envelope, newer 
construction, CBR agents not likely to 
penetrate into interior through wall 
cracks or roof gaps without longer 
contact time. Over 50 percent of 
exterior surface is glazing on front and 
one-third of the side where glazing 
exists. Loss of any envelope system will 
have moderate to serious consequences 
or impairment of core functions and 
processes mainly due to environmental 
effects—weather entering building. 
Workarounds (plywood, plastic 
sheathing) possible. 
5. Utility Systems Medium 5 Well protected and buried, but single 
lines. Backups already planned or in-
place makes loss of utility systems less 
important. Commercial utilities have 
high reliability in area. 
6. Mechanical 
Systems 
High 8 Single HVAC system supports multiple 
HVAC Air Handling Units and interior 
spaces. High economic cost to replace. 
Loss of business revenue. Limited 
workarounds due to location of HVAC 
load within building. 
7. Plumbing and 
Gas Systems 
Medium 6 Wet pipe sprinkler system and handheld extinguishers are means of fire 
protection in this 24/7 operation. 
Natural gas provides some humidity 
control for core processes but 
workarounds (portable dehumidifiers) 
possible. Water for cooling tower 
makeup is critical to support core 
processes, but workaround (water 
tanker) possible. Moderate to serious 
consequences or impairment of core 
functions and processes if lost. 
8. Electrical 
Systems 
High 8 Single-point vulnerability and 
organization critical. High economic 
cost to replace. Loss of business 
revenue. Commercial utility with 
backup generator required to meet 24/7 


requirements. 
9. Fire Alarm 
Systems 
Medium 5 Wet pipe sprinkler system and handheld extinguishers are only means of 
fire protection. Fire alarm system 
provides additional coverage – heat and 
smoke detectors. Nearby fire 
department has connection to alarm. 
Moderate to serious consequences or 
impairment of core functions or 
processes if lost. Workarounds (roving 
fire watchmen) possible. 
10. IT / 
Communications 
Systems 
High 9 Single-point vulnerability and 
organization critical. High economic 
cost to replace, but replaceable. Loss of 
business revenue. Loss of primary 
services or major loss of core processes 
and functions for an extended period. 


UNIT II-B CASE STUDY ACTIVITY: 
ASSET VALUE RATING 
(Urban Version) 


Asset value is the degree of debilitating impact that would be caused by the incapacity or 
destruction of a building’s assets. Page 1-13 of FEMA 426 provides an Asset Value Scale 
(Table 1-1) to quantify asset value, as well as definitions of the ratings. Table 1-2 on page 1-14 
of FEMA 426 provides a format to summarize the value of the major categories of a building’s 
assets. FEMA 452, pages 2-17 to 2-19 provide additional information. 

Requirements 

Refer to the Appendix B Case Study to determine answers to the following questions: 

The first question is answered below as an example. 

Identifying Building Core Functions 

1. What are HazardCorp (HZC) Building’s primary services or outputs associated with its 
providing office rental space? [Pages B-3, B-10] 

Building Management provides security (access control and physical), coordination of 
emergency actions, operation and maintenance of emergency response / life safety 
systems, underground parking, loading dock security and coordination for supply trucks, 
vendors, and trash supporting the tenants. Inspection of mail, packages, and equipment 
using x-ray and other equipment before distributing to tenants within the building and to 
other agencies within 2 blocks. Utilities, along with emergency backups; and vertical 
transportation (elevators and stairs). 

2. What critical functions / activities take place at HZC to support the goals of the building 
management and goals of the building tenants? [Pages B-18 to B-26] 

Fire protection (water supply and fire detection), access control and physical security, 
emergency response, reliable utilities with backups, and secure / speedy movement of 
materials and supplies between loading dock and tenant locations. 

3. Who are the building’s occupants and visitors? [Pages B-1, B-12] 

Building occupancy (tenants and staff) is estimated to be 8,000 people at any given 
moment. The tenants include Federal, State, and local agencies; along with financial, 
insurance, and banking companies. These agencies and companies have daily visitors to 
transact business. In addition, the first floor lobby and retail spaces can have an 
additional 1,000 people depending upon time of day, which includes meeting rooms that 
are available on the second and third floors. Building occupants / tenants use the 


underground parking as well as the general public who may have no other link to the 

building. 

4. What inputs from external organizations are required for HZC’s success? 
[Pages B-18 to B-26] 

Utilities and communications supplies/vendors; building systems hardware and software 
applications vendors; understanding of individual tenant requirements in regards to 
security and emergency response and coordination with local municipal emergency 
response. Also, armored cars/trucks for cash and valuables movement, messengers to 
and from to move packages, and the proverbial pizza delivery for late night work among 
tenants. 

Identifying Building Assets and Quantifying Asset Values 

Use the following process to complete the following tables -- HZC Critical Functions Asset 
Value Rating and HZC Critical Infrastructure Asset Value Rating 

1. Refer to Table 1-1 in FEMA 426 and the associated value descriptions for the ratings 
listed below 

• 
Very High (10) 
• 
High (8-9) 
• 
Medium High (7) 
• 
Medium (5-6) 
• 
Medium Low (4) 
• 
Low (2-3) 
• 
Very Low (1) 


2. 
Consider the questions on page 1-11 in FEMA 426 and as you rate HZC’s assets. 
3. 
Refer to Table 1-2 in FEMA 426, Nominal Building Asset Value Assessment and 
use the descriptions of these asset categories as found in the Appendix B Case Study 
to focus the rating. Another approach is to use an asset value rating of 5 (mid-range) 
and do a pair-wise comparison to each asset category as the process continues, raising 
or lowering the rating from 5 as the team compares asset value inputs collected from 
the Appendix B Case Study. 


NOTE 1: The first rows in both tables are completed as examples. Nominal ratings are 
provided in all other asset categories. Confirm the team’s Value and Numeric Value 
rating for each category and provide Rationale for each rating. Enter information on 
the following worksheets and on the Risk Matrix poster. 

NOTE 2: Consult Table 1-22, pages 1-46 to 1-92, in FEMA 426. Look at the content of the 
questions to understand the various infrastructure asset categories. For example, 
Utility Systems apply to all utilities outside the 3-foot drip line of the building (from 


the source to the building, but primarily on the site), while Mechanical, Plumbing, 
Gas, Electrical, Fire Alarm, Communications, and Information Technology Systems 
are inside the 3-foot drip line of the building. 

HZC Critical Functions Asset Value Ratings 

Asset Value Numeric 
Value 
Rationale 
1. Administration Medium High 7 While there may be some redundancy 
and staff skills that can be easily 
replaced, the Building Management 
administration keeps the building 
humming and loss of some or all 
administration staff would have serious 
consequences or impair core processes 
and functions for an extended period of 
time. Low to medium economic cost to 
replace, depending upon individual 
function. 
2. Engineering / IT 
Technicians 
High 8 Due to the complexity of building 
operations, including computer systems 
for Supervisory Control and Data 
Acquisition, Electronic Security Systems 
(CCTV and access control), Energy 
Management and Control Systems, etc., 
the loss of this function in whole or in 
part can result in severe loss of primary 
services or major loss of core processes 
and functions for an extended period of 
time. Interim workarounds include 
manufacturer’s / technical service firms 
for each individual system. Moderately 
high economic cost to replace based 
upon skill sets sought. 
3. Loading Dock / 
Warehouse 
Medium 5 Large amounts of mail, packages, 
supplies, furniture, materials, etc. are 
processed through the loading dock and 
adjoining mailroom. This single point of 
entry into the building cannot be handled 
easily through other entrances without 
moderate to serious consequences or 
impairment of core functions and 
processes -- Building Management 
support of tenants. Workarounds 


available which impact the first floor. 
Moderate economic cost to replace. 
4. Data Center High 8 For Building Management to support the 
tenants, the building data center must 
handle all building functions for the 
operations and maintenance of 
equipment, energy conservation, utilities, 
backup systems, etc. It these systems are 
lost for an extended period of time there 
will be grave consequences with loss of 
primary services or major loss of core 
processes and functions. Initial and 
future economic losses will far exceed 
the value of these systems, their 
maintenance, and replacement. 
5. Communications High 8 As with the Data Center, a 50-story 
building requires reliable 
communications to function, especially 
those associated with life safety. This is 
a core process of Building Management 
supporting tenants. Extended loss of 
communications, while workarounds 
(cell phones, alternate circuits) are 
available, result in large economic losses 
that may not be replaceable. 
6. Security Medium Low 4 The security provided by Building 
Management is limited to access control 
and criminal threat (alarms and CCTV 
monitoring), at least initially during this 
assessment. Tenants requiring higher 
levels of security provide it themselves. 
After assessment, security mitigation 
measures may increase the asset value of 
security systems due to increased support 
to tenants. 
7. Housekeeping Low 2 While this function can be easily 
replaced and requires no critical skills or 
equipment, the Building Management 
support to tenants requires an acceptable 
level of cleanliness due to the high 
number of visitors to the building. Much 
trash can be generated by 9,000 people 


over a day. 
HZC Critical Infrastructure Asset Value Ratings 

Asset Value Numeric 
Value 
Rationale 
1. Site Medium 5 Building owner has a large investment in 
the building and site. Loss of access to 
site by Building Management, but more 
so tenants, would have rippling 
economic impact. Because only parking 
and some fuel storage is underground, 
and site is relatively small, the building 
and its functions will have moderate to 
serious consequences and impairment of 
core functions and processes supporting 
the tenants. 
2. Architectural Medium High 7 Locations of functions within the 
building and their proximity to high risk 
areas, like the lobby, loading dock, and 
streets place a high value on where 
functions are placed in the building and 
how they can be protected. Architectural 
placement has serious consequences and 
impact upon core processes and 
functions over an extended period of 
time. 
3. Structural 
Systems 
High 8 A 50-story building can exist only 
because of the structural system supports 
it. An incident affecting the structural 
systems on any floor can affect all other 
floors. Loss of even a small portion of 
the structural system can have grave 
consequences in this case, impacting 
everything in the building. 
4. Envelope 
Systems 
Medium High 7 The envelope system keeps the weather 
out and the conditioned air in. If the 
envelope was lost, there are workarounds 
to temporarily patch the situation, but 
depending upon the curtain wall design, 
the windows may have to be replaced 
from the outside on all floors which 


would be at great expense with minimal 
impact on tenants OR from the inside 
which would impact tenants to a greater 
extent or cost additional for working 
during non-business hours. 
5. Utility Systems High 8 For a 50-story high rise utilities are a 
necessity to make rentable office space 
inhabitable. While short term 
workarounds may allow some 
operations, loss of critical utilities 
usually results in the execution of COOP 
(Continuity of Operations Plans) for 
major tenants. The loss of business 
revenue for HZC would be very 
significant. 
6. Mechanical 
Systems 
High 8 For similar reasons as in Utility Systems 
above, Building Systems are equally 
important and necessary for occupancy. 
This is especially true for air 
conditioning of equipment and people. 
7. Plumbing and 
Gas Systems 
High 8 For similar reasons as in Utility Systems 
above, Building Systems are equally 
important and necessary for occupancy. 
Water Systems that support sanitation 
and fire protection are must haves when 
occupying a high rise. 
8. Electrical 
Systems 
High 8 For similar reasons as in Utility Systems 
above, Building Systems are equally 
important and necessary for occupancy. 
Electrical Systems for lights, equipment, 
environmental control, and elevators 
make inhabiting the upper floors of a 
high-rise possible. 
9. Fire Alarm 
Systems 
Medium Low 4 While necessary for occupancy of a 
high-rise, there are workarounds 
(manpower intensive) that can be done 
for weeks without requiring evacuation 
of building, especially since it has a 
water sprinkler system and 24/7 
occupancy of the Security Operations 
Center / Fire Control Center. 


10. IT / 
Communications 
Systems 
High 8 For similar reasons as in Utility Systems 
above, Building Systems are equally 
important and necessary for occupancy. 
Data and Communications cannot be out 
of operation for short time periods, 
without resulting in significant economic 
impact. 


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