Purpose
The Probable Maximum Loss (PML) Study is a financial assessment of the vulnerability of a building, structure or facility. The PML calculation is an estimate of the cost to restore a structure to pre-incident conditions.
Lenders and insurance underwriters use the concept of a PML Study to accurately estimate the damage resulting from a catastrophic event and thus the appropriate premiums to cover this eventuality.
In the context of terrorist attack prevention a PML Study will identify structural and operational elements contributing most to potential risk as well as illustrating how to modify, mitigate, or even remove such risk.
Financial advantage
The development of a PML Study assists finance managers and insurance underwriters to determine several critical factors in relation to property insurance coverage, including:
- The estimated value of financial loss expected to occur in terms of either property damage or loss of business.
- The value of insurance which should be purchased.
A PML study, based on sound methodology, objective evidence and practical risk mitigation measures can dramatically reduce the cost of terrorist damage insurance.
TRLtd Methodology
The Threat Resolution Ltd (TRLtd) methodology is based upon our corporate experience in explosives engineering, terrorist threat assessment and blast mitigation. The Company employs a logical system of work to acquire data on which to base risk mitigation solutions.
The dynamics of the terrorist threat situation are taken into account to provide longevity to solutions. A terrorist damage survey details possible attack scenarios and associated Improvised Explosive Devices (IEDs) currently used by international terrorist groups, supported by a threat assessment for the relevant country to determine the most plausible attack scenarios.
Vulnerable points, including a worst case location, are identified and the effectiveness of security measures is examined, to assess how far they mitigate the probability of a successful attack. Consideration is also given to the likely effects of a successful act of sabotage.
The PML Study output is an objective assessment, that offers clients practical solutions which effectively mitigate risks to personnel and property, as well as significantly reducing the risk of catastrophic loss or severe business interruption.
TRLtd experience demonstrates that solutions rarely involve expensive structural changes and simple operational tactical measures are often sufficient to warrant a reduction in insurance premiums.
TRLtd professionals are notably experienced in Probable Maximum Loss (PML) Studies in high threat countries, where government and commercial organisations have already suffered attacks by international terrorist groups.
