Pace Book 1

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Security PACE Book 1 - Security Principles and Operations Course Introduction Security Principles and Operations is Book One in this PACE series on Security Basics. It was designed to cover basic concepts and principles that address the

Security Principles and Operations Assets Protection Security Resources Underwriters Laboratories Standards Burbank Cryogenics - A Case Study

security-related and environmental issues requiring security systems.

Learning Objective After completing this PACE Book, you should be able to: compare the traditional definition of assets protection with today's definition of security assets protection describe the importance of people, material, and property as they relate to security assets protection describe the purpose of an Assets Protection Program (APP) identify sources of potential disruption to operations, both internal and external discuss the five (5) objectives of an APP list the three (3) essential elements of a systems approach to security describe the three (3) variables in vulnerability analysis explain the three (3) requirements of event profiles list the key factors influencing event probability list factors to consider in assessing event criticality name and describe the four (4) categories within event criticality describe the significance of countermeasures and management support within an APP list the key objectives of operational testing explain how vulnerability analysis, countermeasures, and operational testing work together in an APP and describe their outcomes list the advantages of multiplexed systems for security programs describe modern security organizations and personnel as security resources recognize UL standards as they apply to security operations given the three elements of an APP, identify a solution to an AP problem (case study)

http://training.simplexnet.com/SEC601/SEC601.htm (1 of 2) [10/15/01 1:46:52 PM]

Assets Protection

Assets Protection In the past "security" was fairly straight-forward. Images of bank guards or fences topped with barbed wire accurately represented the extent of security solutions in most instances. That was yesterday. Today, the demands placed on security professionals have moved far beyond guards and barriers. Effective security requires a comprehensive "systems" approach that protects all assets of a company. In this section, you will learn: what these assets include what the security issues are regarding each asset category, and what security solutions are available to protect them. One note of explanation before we begin: Throughout this series we will refer to the "company." In most instances, however, these discussions also apply to many different types of organizations. These may include colleges and universities, medical facilities, industrial plants, etc. Corporate security applies to these settings as well.

Assets Protection

Defining Assets In general, a company's assets may be broken into three (3) main areas. These include: People - Employees, customers, and others who may visit a site Materials - any materials used in a company's processes Property - both physical and intellectual We'll look at each of these in more depth.

Assets Protection

People It is often said that people are a company's most important asset. A company's employees, after all, are responsible for coming up with the ideas for goods or services which bring success to an enterprise. Employees design, engineer and manufacture the product. They manage these operations, track costs and revenues, and provide a sense of overall direction for the business. All of these individuals are valuable assets to a company. In addition, customers, contractors, vendors, and other visitors become part of a company's assets, particularly while they are within the company's physical plant.

People can also be potential threats or liabilities to a company. Both outside individuals and company personnel who may be intent on injuring the company in some way — by theft of materials, for example — present significant concerns to security operations. Example of such "people" threats include:

Assets Protection

protesters/demonstrators thieves a disgruntled employee damaging property or interrupting operations

Assets Protection

Materials Consider all the materials typically used by a company. The raw material used in a company's processes must be protected from theft, damage, or any other problems which would interfere with manufacturing. Finished products are also part of the company's material assets and should be a major security concern. In addition, any materials which may be created as by-products of the manufacturing process are also of concern. Some of these materials (e.g., chemicals, gases, lubricants and fuels) may be classified as hazardous materials and present a special security concern.

Assets Protection

Property Traditional approaches to security have always focused on property, but today property includes much more than just physical items, and this, of course, impacts corporate security concerns. Physical property is clearly an asset; therefore, it requires a plan to protect it. However, there is a whole range of other types of property, generally described as intellectual property. This can include:

research computer programs created by the company operational procedures marketing and sales data certain company policies All of these are valuable assets of an organization that require prudent protection. The challenge for security personnel is to implement effective protections for people, materials, and property. A successful security operation must be build on an Assets Protection Program which addresses all of these system-wide concerns. In addition, an effective security program must be able to address current and emerging threats within the environment in which a company operates. We will look at this next.

Assets Protection

Potential Disruptions Managers of an effective Assets Protection Program (APP) must be concerned about all potential disruptions to a company's operations. Such disruptions can come from either the inside or the outside. Internal sources of disruptions include: disgruntled employees; or former employees There are other less obvious possibilities as well.

Assets Protection

Consider the effects of major or unanticipated changes within a corporation's "culture" — layoffs resulting from downsizing or mergers, for example. Such change may lead to high levels of anxiety within the work force. Disruptions from outside include: disgruntled customers vendors contractors; or persons who may have no prior links to the company. At the extreme, such disruptions become disasters ranging from bomb threats to actual bomb detonations or other types of terrorist deeds. Disruptions can also result from: major accidents interruption of water and power services (either accidental or intentional); or fires. All of these may be triggered by human activity, but disruptions also result from natural disasters including: floods, tornadoes; and earthquakes.

Assets Protection

Protecting All Property Assets Asset protection also involves preventing or reducing theft of materials or destruction of property or facilities. Again, there is little difference in these concerns from traditional security concerns; however, security operations which limit their scope of interest — to materials pilferage, for example — risk even greater potential losses. Consider the loss of sensitive company-private information, compromises to corporate information systems, and misappropriation of funds or property. Each of these

Assets Protection

poses significant risks to the company. In most companies, security issues overlap with concerns addressed by other corporate departments — Human Resources, for example. Such concerns include employee down-time due to: tardiness substance abuse domestic violence; and psychological problems. These issues extend beyond security, but there is no question that employees in these situations are legitimate security concerns. Security professionals also deal with the improper activities of employees, particularly corporate officers. Conflict of interest is the number one concern. One example of conflict of interest is an officer who takes sensitive information to a new job at a different company. This activity clearly threatens a company and is a significant challenge to an APP. Similarly, violations of established business standards — in contract procurement, for example — and financial mismanagement present additional threats, all having a potentially serious impact in corporate stability. As you can see, the issues confronting security professionals today are broad in scope, and these threats have a potentially major impact on a company's operations. Security professionals must be aware of all potential risks in order to develop an APP. Next, we will

Assets Protection

Elements of an Assets Protection Program There are two (2) requirements for an APP. Both grow out of the need for a comprehensive "systems approach" to security. These requirements are: a realistic security plan

Assets Protection

a fully committed management, including the company's top officers A company's security plan should be based on the specific needs and resources of that company. A realistic plan must reflect an understanding of both the requirements of the company and the financial and human resources for security operations. Such a plan has five (5) objectives:

include methods for responding emergencies minimize the opportunities for disruptions to company operations manage potential losses in all areas of the company provide a systems approach to security (including methods for controlling, monitoring, and recording access, events, and incidents implement an education program to increase employee awareness of security issues within the company, and clarify employee responsibilities with respect to security.

Assets Protection

Total Commitment at All Levels Without the full support of management, the best designed security plan may still be compromised. A successful Assets Protection Program requires total commitment from all level of management, starting at the top. Only with this "top-down" commitment will such a system-wide approach to security and Assets Protection be as effective as possible. Management's commitment is reflected in the resources allocated for the security plan. Management must also clearly communicate their

Assets Protection

commitment to their employees. Delegating responsibility to mid-level management, without demonstrated seniorlevel commitment, will result in compromised effectiveness. The commitment of senior-level management is also seen in its compliance with the company's established security procedures. A CEO, for example, who casually walks through a facility, expecting to borrow someone's badge to enter a controlled area, sends a message that security — for some people — isn't all that important. And like so many other things, a corporate security plan is only as good as its weakest link. In the example just cited, the CEO may indeed be the weakest link.

Assets Protection

Program Implementation By now, the value of a comprehensive systems approach to security should be clear. Such an approach is built on three (3) essential elements: a vulnerability analysis selection and implementation of countermeasures based on the vulnerability analysis a thorough, on-going testing program for validating the security plan Next, we will look at each of these elements in more depth.

Vulnerability Analysis A Vulnerability Analysis asses a company's risk for various kinds of disruptions. Vulnerability is based on three (3) variables: event profiles (potential threats) event probabilities (the likelihood of an event occurring) event criticality (severity of impact on the company's operations).

Assets Protection

Event Profiles Event profiles list potential threats to a company. The task of the security planners is to identify and asses the threats to people, materials, and property. Threats must be based on reasonable expectation of potential impact. (While it is possible for a meteor to fail on a company's home office, the wisdom of a security plan to respond to such an event is questionable.) Threats, reasonably expected to occur, must meet clear criteria. The event must present a risk to the security of the company which can be measured in a formal way. Finally, the measurement of the risk must be based on valid criteria; in other words, it cannot simply be speculation or supposition on someone's part.

Assets Protection

Event Probability - Contributing Factors Event probability is the second variable in determining vulnerability. The greater the likelihood of an event occurring, the greater the event probability. Event probability provides a means for deciding which potential threats will likely become actual events.

Assets Protection

Physical One factor affecting event probability Environment is a company's physical environment — location, geography, climate, physical plant design and even the number of people utilizing the facility. A company which uses hazardous materials in manufacturing processes in a building on a California fault line may determine a high level of probability with respect the earthquake damage and, as a result, institute sophisticated building modifications. On the other hand, another company, using virtually identical chemicals, in an identical building located in the prairies of South Dakota, may determine an earthquake as a low event probability and therefore implement very different policies and practices. Social and Besides an organization's physical Political environment, security planners must Environments also consider social and political environments when assessing event probability. Issues of social and political environments can be particularly sensitive. A security planner, who is examining event probabilities with respect to social and political environment, must look for statistically significant patterns that suggest high levels of probability with respect to certain threats. Again,

Assets Protection

these measures must be based on quantifiable criteria and must not be based on personally held attitudes or anecdotal "evidence." Factors which are typically associated with social environment include the crime, income, and age levels of neighborhoods around a company's location. Political environment can include a country's political structure, especially in overseas locations, but political environment also involves the company's own "politics." This may include internal politics and organization, the "corporate culture," management style, and attitudes toward issues which impact the company. In addition, another factor which impacts the political environment is how the company's politics are perceived by its neighbors. Past History Another key factor to consider in assessing event probability is past history. Long-term, accurate records can provide powerful predictors of particular events. Types of events and the number of occurrences of each event yield valuable data for security planners.

Assets Protection

Tools to Aid in Assessing Event Probability Often planners use checklists and risk matrices to help determine event probability. A checklist is simply a form which calls out specific pieces of information related to an event — type, time, and locations, etc. Checklists assist security personnel in developing a database of event occurrences. A risk matrix provides a comparison of two or more factors which can be helpful in determining event probability. It is useful in identifying trends by compiling records of several similar events. A matrix may report all the occurrences of a given event by location. Under each location additional data is recorded. With the matrix completed, it is possible to determine if any location is more likely than others to experience the particular event and whether time or other factors are significant. With sufficient data, security planners confidently assign event probability. During this final stage of the process, planners look for a means to prioritize events; that is, which events are more likely to occur than others. To this end, five or six probabilities may be established. Categories range from "low likelihood of occurrence" to "high likelihood." Each event type is assigned to a category, based on data previously gathered. When completed, all potential threats will have rating that indicates which events are of greatest concern to security personnel by virtue of their high probability.

Assets Protection

Event Criticality Probability is not the only factor to consider in implementing an Asset Protection Program. Event criticality is also important. Criticality assess the impact an event occurrence may have on a company's operations. An event may have a much greater impact on operations event though its probability may be lower than another. For example, the probability of theft of materials may be greater than the theft of a company-private software design, but the theft of the software design could have a far greater impact on the company's operations.

Assets Protection

On the other hand, an event which has a high probability of occurring may have a low level of criticality. The cost of countermeasures required to prevent a loss may far exceed the cost of the actual event itself. Consider personal use of the company photocopy machine. Systems could be put in place to control such employee behavior, but the security costs would certainly outweigh the actual costs associated with photocopying. Besides direct one-to-one costs, other factors must be considered in assessing criticality: employee morale community relations potential impacts on revenues downtime competitive position in the marketplace For example, suppose an employee makes a company's cost sheets available to the competition. While the shortterm damage may be negligible, there could be a longerterm impact on competitive position, and ultimately on revenues. As with probability categories, security professionals determine the specific ratings scale for event criticality in their own company. There are four (4) basic levels: Fatal - discontinuance of business or operations Very serious - major negative impact on operations Moderately serious - noticeable negative impact Marginally serious - full recovery from impact is possible with resources on hand

Assets Protection

Countermeasures Design and Implementation With the company's vulnerabilities — event profile, event probabilities and event criticality — determined, security planners design countermeasures which will: reduce the probability of an event occurring; and provide an immediate response if it does occur. Effective countermeasures involve personnel, hardware, and software. Personnel include company employees and those supplied through contracted services. They are responsible for supporting all phases and components of the security operation; they provide all security management functions as well as day-to-day implementation of security policy and procedures:

Assets Protection

Hardware countermeasures create a company-wide security "infrastructure," including all physical equipment and devices used for access control, intrusion detection, locks, fencing, barriers, closed circuit television, and badging systems. Software countermeasures include security information programs, employee training and awareness programs, education materials, and policies and procedures.

Assets Protection

Operational Testing The third and final element of an effective APP is a regular, on-going testing program. This is essential because such a testing program: identifies any risks which may still exist within the company's operations isolates any deficiencies within the existing system (changes in a company's culture and operations may require a similar change in the company's security system) identifies where changes are required in order for the security system to grow with the company; and provide a means of ensuring that security program policies and procedures adequately meet the company's needs

Security Resources

Security Resources As in other areas, security benefits from advances in technology. Multiplexed, integrated security systems are now universally accepted as the standard technology for security. These multiplexed systems define a baseline for all security programs, and offer the following advantages: lower operating costs broader protection capabilities overall increase in system reliability comprehensive coverage (including reporting) of multiple locations from one central command and control point flexibility and extendibility greater control throughout the entire system; and fewer security personnel (because of the ability to centralize control). Multiplexed systems benefit companies by: allowing them to achieve improved security with a significantly improved economy of resources, particularly with respect to personnel; and providing a modular design that allows newer technologies to be integrated into the existing system,

Security Resources

thus adding functionality, longer life, and an improved lifecycle cost to the company's current security system. As mentioned above, modern security organizations function effectively with smaller staffs. Current trends toward more sophisticated systems, however, demand personnel with higher levels of education and training. Increasingly, security personnel have an in-depth, broadbased knowledge of all aspects of security, as well as demonstrated skills in computer operations and systems applications. Today, security management positions typically require a college degree and professional certification. In addition to security issues, many secure managers have demonstrated competencies in business disciplines. Security is increasingly an executive staff level function within a company and as a result, requires more skilled personnel. This also assumes a centralized operation as the preferred model. In keeping with this more integral approach to security, security operations are expected to develop business plans and goals that contribute to the overall objectives of the company. As in other departments or divisions of the company, the security operation is expected to plan and implement programs that meet business objectives. As these objectives change, security management must revise their own plan. In addition, security throughout the APP is standardized and duplication is eliminated, thus maximizing efficiencies while minimizing personnel and other resourcing costs. This approach to corporate security limits direct, companyhired security personnel to professional positions,

Security Resources

technical support and administrators. Guards and other support personnel will be provided through outsourcing. In many ways, corporate security has reached a new level o maturity. The current environment suggests a broader range of potential threats. These threats have compelled security planners to design a comprehensive top-down, systems approach to the task of assets protection. And emerging technologies, driven by these new models of security, are enabling security operations to achieve levels of responsiveness never before possible.

Underwriters Laboratories Standards

Underwriters Laboratories Standards Underwriter Laboratories The speed and extent of the changes in security operations and systems could suggest a lack of meaningful industry-wide standards. Fortunately, this is not the case. Underwriters Laboratories have defined a comprehensive set of standards. These UL standards define requirements in the manufacture, construction and installation of security products. Underwriter Laboratories have further defined the primary objective of security products as ensuring the protection of assets. To accomplish this objective, devices used in security systems must meet the defined UL standards. Underwriter Laboratories provides standards for security products. UL standards also apply to the suppliers of security products and to the installation requirements for security products. Security professionals and others involved in the security industry should be familiar with the applicable UL standards, in particular standard numbers: 294 (Access Control Systems); and 1076 (Alarm Systems and Units, Proprietary Burglar) The entire listing of relevant UL standards appears below:

Underwriters Laboratories Standards

Standard No.

Title

294

Access Control Systems

1635

Alarm Communications Systems, Digital, Burglar

1076

Alarm System Units, Proprietary Burglar

904 1037 752 1023

Mann Systems and Units, Vehicle Anti-Theft Alarms and Devices Bullet Resisting Equipment Burglar Alarm System Units, Household

681

Burglar Alarm Systems, Commercial

611

Burglar Alarm Units and Systems, Central Station

1034

Burglar Resistant Electric Locking Mechanisms

608

Burglar Resistant Vault Doors

983

Cameras, Surveillance

827

Central Stations for Watchmen, Fire Alarm and Supervisory Service

634

Connectors and Switches for use with Burglar Alarm Systems

539

Fire Alarm Devices, Single and Multiple Station

985

Fire Warning Systems, Household

Underwriters Laboratories Standards

972

Glazing Materials, Burglary Resisting

636

Hold-up Alarm, Units and Systems

639

Intrusion Detection Units

689

Linings and Screens

609

Local Burglar Alarm Units and Systems

768

Locks, Combination

437

Locks, Key

365

Police Station, Connected Burglar Alarm Systems and Units

603

Power Supplies for use with Burglar Alarm Systems

687

Safes, Burglary Resistant

603

Power Supplies for user with Burglar Alarm Systems

687

Safes, Burglary Resistant

Underwriters Laboratories Standards

Burbank Cryogenics - A Case Study

Burbank Cryogenics - A Case Study

Company Profile Burbank Cryogenics is the leading developer of cold tissue regeneration and storage. Their genetics division is the sole supplier of artificial skin to the US military which uses this tissue in their burn therapies on severely burned personnel. It ranks among the top five biotechnology companies in the United States and has experienced a 50% growth rate annually over the past three years. Burbank Cryogenics (BC) has recently become a privately traded company on the New York Stock Exchange. It was privately held from its founding in 1978 until 1996.

Burbank Cryogenics - A Case Study

Burbank Cryogenics - A Case Study

Company Operations BC currently employs 17,000 people in four major facilities in Massachusetts and Rhode Island. Corporate Headquarters is located in a 10-story office building which the company owns in the financial district in downtown Boston. Their main manufacturing laboratory in Providence, Rhode Island recently became a union work force. BC's Research and Engineering Facility is located in Roxbury, Massachusetts, which is a neighborhood of the City of Boston. Their Production Warehouse, which also houses the MIS Group, is located in East Boston adjacent to Logan International Airport to take advantage of 24-hour air freight shipping. The company has also done research in areas requiring animal testing, which is widely opposed in the communities where they are located.

Security History The biotechnology field, especially genetic research, is a highly competitive business, where information must be properly safeguarded to ensure success. BC has experienced several security breaches in the past six months, and its new management team has decided it must implement a thorough security plan. The company culture has been an open campus environment with most employees working flexible schedules. Its philosophy has been to allow employees to go anywhere in the company unabated, with uncontrolled access permitted even in the research laboratories.

Burbank Cryogenics - A Case Study

HQ Requirements BC's corporate Headquarters located in the financial district of Boston is a very safe environment, with incidents of crime almost non-existent. However, management wants to safeguard against workplace violence, due to the stress of this highly competitive business. The employees are exclusively middle and senior managers, with appropriate administrative/secretarial support personnel also assigned to this location. All major corporate functions are in this facility: Finance, Controller, Procurement, Human Resources, Legal, Patents, Strategic Planning, Public Relations, Customer and Community Relations, Company Officers.

Executive Security Requirements Several executives have achieved a highly visible profile and are concerned about the lack of an executive protection program for them at work, home, in-transit between locations, on overseas travel, and for their families. They consider this to be a part of their compensation packages with BC.

Burbank Cryogenics - A Case Study

Providence Security Problems The manufacturing laboratory in Providence, Rhode Island is located in a high-technology park adjacent to an economically challenged inner-city neighborhood. The area has a high incident rate of drug activity and crimes against persons (e.g., assaults, robberies, and sexual assaults), as well as property crimes (e.g., car thefts, breaking and entering, and vandalism). All facilities in the high-technology park have been built in the last three (3) years. BC's employees have a security clause in their collective bargaining agreement, which requires BS to provide a security program that protects them at all times while they are on BC property. This is due to the many crimes committed against the work force and their perceived lack of protection in/at the workplace. Employees assigned to this facility are either manufacturing management, facility support or production workers. All non-management employees recently unionized and are members of the Internal Brotherhood of Electrical Workers (IBEW).

Burbank Cryogenics - A Case Study

Facility and Materials Requirements Currently anyone can enter the high-technology park and has access to parked vehicles, loading docks, lobbies, and outside break areas. The economic level of this area is very poor, and most buildings are in disrepair with the exception of those in the high-technology park which are state-of-the-art facilities. There is also concern that several facilities have been broken into. While BC has been spared so far, should a break-in occur, there are numerous sensitive laboratories, equipment, developmental materials and processes that could be damaged. Some of the tissue regeneration efforts are irreplaceable and require the highest priority protection.

R&E Facility Background The Research and Engineering Facility is located in Roxbury, Massachusetts, which is a neighborhood of the City of Boston. BC received incentives from the state and city administrations to locate this facility in an inner-city environment. Its security issues are very similar to the Manufacturing Laboratory in Providence, RI.

Burbank Cryogenics - A Case Study

People Security Problems/Needs The one significant difference between Roxbury and Providence is the major gang activity that occurs almost unabated in Roxbury, even though the Boston Police Department's Anti-Gang Unit is a constant presence. The Major and Governor have started to receive pressure from BC management to eradicate this activity, because employees have walked off their jobs on two different occasions when exposed to gunfire as they departed the facility. This is a major personnel issues as the surrounding geographical area has a constant demand for qualified engineers in suburban and rural settings and the turnover is almost 40% for the current year. The employees located at this facility are engineering management, engineers and support personnel.

Facility/Materials Needs This facility houses state-of-the-art laboratories and equipment. It has been broken into on several occasions with major equipment losses and destruction of research projects that have been extremely costly to replicate. This has caused major delays in the release of new products, which has hurt BC's position as a market leader in artificial tissue alternatives.

Burbank Cryogenics - A Case Study

Warehouse Background The Production Warehouse, which also houses the MIS Group, is located in a recently constructed facility adjacent to Logan International Airport. The facility was located here to take advantage of the 24-hour freight shipping available to meet customer requests, and handle the immediate shipment of BC's products with a limited shelf-life.

Personnel and Materials The employees assigned to the facility are generally software/hardware engineers, management and production workers who support shipping/receiving, transportation and warehouse operations. The facility stores raw materials, production by-products requiring regulated disposal (hazardous materials) and finished products.

Burbank Cryogenics - A Case Study

Security Requirements The BC facility is located in a general warehouse/transportation hub. While there are no immediate neighborhoods adjacent to the facility, car break-ins and car thefts occur daily. Many employees require access to the airport's tarmac areas. This requires the employer (BC) to perform an additional background check on employees to meet the minimum security requirements for access to the airport's restricted areas. These results are sent to Airport Central Security with application for access by BC's Human Resources Department, who wants this responsibility transferred to the new Security Department immediately. All the major main computer systems for BC's financial group, personnel records, order processing and tracking systems require added protection due to the criticality of systems being down. The order processing system was recently sabotaged by an employee, who was fired for cause and later rehired and returned to the facility without any problem. This act of sabotage resulted in orders being delayed for 10 days causing numerous cancellations, and caused BC to operate at a loss for the quarter for the first time in their history.

Burbank Cryogenics - A Case Study

Planned Changes for Personnel The new BC management team has announced that access to all company facilities will be determined by an individual's pay status, job position and work assignments. Different time zones must be developed to accommodate business and non-business hour access. Positive control and identification of employees must also be accomplished; discharged employees must be prevented from reentering any location at any time. The management team also wants all visitors, vendors, contractors, and deliveries positively controlled and documented. The union work force will be restricted to manufacturing areas.

Planned Changes for Facilities and Materials All research laboratories, computer areas, executive offices, critical storage areas and parking areas will have strict access control with compartmentalization required. A comprehensive protection program that protects employees the entire time they are on BC's property must be developed, with testing and feedback from the employees built into the program. Information systems, research processes, manufacturing processes, and patent projects have been classified as company confidential and will require a layered security program. The new management team wants comprehensive CCTV coverage with recording at a quality that can be used in litigation if necessary. The bottom line is they want a complete, in-depth, fully

Burbank Cryogenics - A Case Study

documented security program that implements the latest technology, operated by a trained and professional security staff.

Additional Changes The company will hire a security director for the first time in their history, and it will require this individual to develop an assets protection program as his first priority.

Objective You are the new Security Director for Burbank Cryogenics and as your first priority, you must develop an asset protection program that includes BC's four major facilities and incorporates their main protection requirements. The questions below will help you begin formation of the APP.

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