The document discusses risk, threats, and consequences in the context of homeland security, emphasizing that these are not solely the responsibility of the federal government but involve all levels of government and the private sector. It outlines a formula for assessing risk based on the likelihood of threats and their potential impacts, as well as categorizing hazards into natural, technological, and man-made events. The all-hazards approach is highlighted as essential for preparing and responding to a wide range of threats, not limited to terrorism.

1. Week One – Risk and the All Hazards Approach
It seems logical for a course dedicated to the examination of
risks, threats and consequences to begin the first segment with
addressing the definitions of those terms. They are not as well
understood as some might think. So, what are risks, threats and
consequences, and how do they apply to the homeland security
field?
Let us first establish that homeland security is not a sole
function or responsibility of the federal government. It is a
collaborative effort of all levels of governments (federal, state,
tribal, county and municipal), the private sector, non-
governmental organizations (NGOs) such as the American Red
Cross, as well as the public at large. As we look at risk, threats
and consequences, we will do so from the perspective of these
various levels of government and throughout the entire breath of
both the public and private sectors (DHS, 2011).
So exactly what is risk? The Department of Homeland Security
(DHS) defines risk in the 2014 Quadrennial Homeland Security
Review as a, “function of the likelihood and potential impacts
of different homeland security threats and hazards” (DHS, 2014,
p. 15). In order to address the issue of risk in a planned and
proactive manner, a formula has been developed by DHS and is
utilized by those within the homeland security enterprise. This
formula is written as: R (risk) = T (threat) x V (vulnerability) x
C (consequence). This formula has been transformed and
updated throughout the years in order to address the ever-
changing landscape of homeland security. Yet, even in its
current form, many feel it has an inherent difficulty in that it
implies a strict mathematical function can be taken to address
the many hazards our country faces; wherein numeric
representations of threat, vulnerability and consequences are
simply multiplied with one another. No such function exists;
but the formula does serve a very useful purpose in displaying
the concept that risk is a composite element of various

2. components and factors that must be considered both
independently and collectively. Therefore, by combining this
formula and the definition noted earlier, we see that risk is
determined by the likelihood that a threat (or hazard) will occur,
and by the impact that threat will have on a community. In
addition, impact (also defined as consequences) is directly
impacted by a community’s vulnerability to that threat; where
areas of weakness are in turn determined by a community’s
ability to protect itself against the threat, respond to it when
necessary, as well as recovering from such an incident in both
an effective, expedient, and efficient manner.
When looking at risk from the perspective of a specific
geographic location (town, municipality, county, state, nation),
risk is simply a composite of all of the threats, vulnerabilities
and capabilities that are found in that location (hereto noted as
community). Therefore, an appropriate point in which to start
is by determining what the community’s threat or hazards are.
This is where the phrase “all-hazards” comes into play and has a
bearing on this overall discussion. To many, homeland security
is concerned with terrorism; nothing more, nothing less.
Although preventing terrorism and responding to such activities
when they do occur is the primary mission of DHS, this Federal
entity and the overall the overall homeland security enterprise is
concerned with maintaining security related to a myriad of
threats and hazards. The Threat and Hazard Identification and
Risk Assessment (THIRA), Comprehensive Preparedness Guide
201 (DHS, 2013) highlights three different categories of threats
and hazards:
· Natural: All disaster events occurring as a result of an act of
nature. Examples are hurricanes, tornadoes, earthquakes,
pandemic events, and severe hot or cold weather.
· Technological: All disaster events occurring as a result of an
act of man, with the exception of acts of violence. Examples
are industrial accidents, plane or train accidents, as well as
transportation-related releases of harmful material (such as an
18-wheeler overturning on an interstate and releasing hazardous

3. materials).
· Man-made: All disaster events occurring as a result of violent
human action. These include acts of terrorism and active
shooter events.
While these categories are generally self-inclusive, there is
room for overlap. For example, wildfires, depending upon their
cause, can fall within any of these three categories. They occur
in nature as a result of lightning strikes; they can occur through
a human or mechanical caused accident (technological), and
they can occur as a result of intended human actions. Yet,
regardless of the type or cause of the disaster event, the all
hazards approach to risk management has the field of homeland
security working towards either preventing them from
occurring, taking adequate protective measures, decreasing their
impact through mitigation-related actions, or responding and
recovery from them as needed.
As noted earlier, the first step in determining a community’s
risk is to determine those specific hazards or threats a
community faces (DHS, 2013). Whether we are discussing a
particular level of government, a government agency, or a
private corporation, the methodology is the same. However,
since the vast majority of critical incidents occur at and remain
at the local level, the approach taken focus will be seen through
the lens of a city or county. Some different courses of action
must be carried out in order to obtain the information needed to
determine the probability of a disaster occurring (DHS,
2013). One is where a historical analysis is to be performed on
those natural disasters that have directly affected the
municipality for as far back as can be accurately determined. A
hundred years is desirable; less may have to be settled for.
Information gathered will include both frequency and seasonal
timing of events, geographic location, costs to the community in
terms of lives, injuries, property damage, etc., as well as loss of
public sector revenue and private sector profit. Another tactic
that must be taken is for information to be gathered on
industrial related hazards that can impact the community. Local

4. industry must be considered related to products, by-products,
and manufacturing processes that may result in an explosion or
accidental release of hazardous materials into the air, ground, or
water. Local power generating facilities will be considered in
an identical manner, as will transportation. Here, local or
traversing (passing through) road, rail and waterway traffic can
present numerous possibilities related to accidental explosions
and releases of hazardous material. Additionally, since
disasters are no respecters of artificial political boundaries,
neighboring communities must be considered for the same types
of hazards. For example, a chlorine spill from an overturned
tanker in one county may result in a hazardous airborne material
entering and affecting a neighboring county. Likewise, an
accidental release of hazardous material into a river may
negatively affect all communities downstream from it.
Not surprisingly, intentional, human-caused incidents are the
most difficult to predict. Historical data is incomplete at best,
and there are no hard facilities or traffic patterns that can be
analyzed to help with the determination of the probability of
these ever increasing incidents. Recent headlines speak to the
fact that active shooter or domestic terrorism events can occur
in any community or in any organization’s facilities. Likewise,
civil unrest can and does occur in many communities across our
nation. Also, the cyber environment is ripe for malicious
attacks that can be carried out from anywhere around the globe
with only a keystroke. Now, whether a given community
decides to elevate the probability of such events from “low” to
high” may be a combination of social, economic, and political
circumstances unique to that community. Also, this
determination is a fluid one, as the probability of these types of
events continues to increase. At one time, certain locales have
felt quite insulated from such violence; yet unfortunately, they
or their neighboring communities have now become e yet
another statistic. Therefore, all communities must consider
those facilities, public gathering points, or items of
infrastructure most prone to terrorist or criminal intent as none

5. can totally dismiss this possibility (DHS, 2013).
Following the determination of what threats and hazards are
possible within a community and the probability of each, one
must then look at the impact of each proposed event and
consider what the consequences might be to a community
should such an event occur (DHS, 2013). Here, a far-ranging
and long-term perspective must be taken. This is because in
addition to a host of immediate impacts, one must consider the
cascading events that will come as a result of it and their
associated costs (financial and otherwise). Every community is
different; each has its own unique social, economic and political
characteristics, but there are some areas that are somewhat
generic to all.
· Life (immediate and lingering death), injury and general
health.
· Economic: This in and of itself is a complex matter. We have
the cost of public sector rebuilding, the costs to individual
citizens, the costs to businesses, the loss of tax revenue, the loss
of profit for businesses.
· Environmental: From sewer overflows, to possible long and
short term contamination from chemical releases from factories
and mines, to the bio hazards of thousands of small animals
killed in flooding …
· Infrastructure, including utilities: The re-building of roads,
bridges, railways, port and airport facilities; the cost of
rebuilding and the additional economic and social effects of
being denied access to aspects of infrastructure required in
everyday living
· Temporary loss of educational systems
· Loss of government services: These can be devastating to
some special needs populations
· Social and psychological effects
· Loss of tourism for those communities where this is a strong
economic factor (DHS, 2013)
At this point, having identified hazards that are likely, the
probability of each hazard occurring, and the impact of each

6. hazardous event, we arrive at the final determination of
consequence by factoring in the community’s ability to cope
with the proposed event. This ability to cope is generally
couched in the term, ‘capability’ (DHS, 2013). For example, if
two very similar communities have a large fire at an elementary
school and one community has a robust fire department capable
of responding within minutes, while the other community has
disbanded its full time fire department due to budget cuts and
now relies on volunteer fire services, which while competent,
takes longer to respond and has fewer assets, the consequences
of the fire on the first community would be projected to be less
than to the second community. Another example would be the
enormous impact a natural disaster could have on a particular
area, such as Hurricane Sandy had on the coasts of Maryland,
New Jersey and New York. Hurricane Sandy was a Category 1
hurricane (the smallest hurricane). In Florida, a state where
hurricanes are common events, and a state where mitigation
measures to lessen the impact of hurricanes have long been
practiced, Category 1 hurricanes seldom result in more than
minor consequences. The consequences of the same size
hurricane in states where mitigation measures have not been
enacted or not routinely practiced are significantly higher and
have a greater detrimental impact on life safety, property
damage, and the resulting effects such as the economy. The
difference has a direct correlation with the capabilities of the
affected jurisdiction. So in our example, Florida has developed
the capability of lessening the impact of hurricanes, so its risk
to such events is less than the New England area, even though it
is exposed to such events on a more regular basis.
Therefore, risk is the consideration regarding the probability of
a threat or hazard occurring, combined with consideration of the
vulnerabilities a community has to such threats or hazards,
combined with the capabilities the community has developed to
lessen the consequences, or impact, of that critical incident. As
we progress through this course, you will see this concept
developed along various avenues of inquiry. We will look at it

7. from the perspective of the national, state, and local levels. We
will also consider these issues from the vantage point of private
businesses, as well as from the aspect of the public sector that
struggles to maintain government services in the wake of these
events. Throughout all of these, an all-hazards approach will be
taken. As it relates to our nation’s homeland security approach,
there is no overriding emphasis on any particular threat or
hazard to the detriment of what is needed to adequately prepare
and respond to other hazards. All of them, from earthquakes to
industrial accidents to acts of terrorism are included in the all-
hazards approach that is necessary to secure the entire homeland
and adequately protect its citizens.
References
Department of Homeland Security (2011). National
preparedness system. Washington, D.C.: Government Printing
Office.
Department of Homeland Security (2013). Threat and hazard
identification and risk assessment, comprehensive preparedness
guide, 2nd edition. Washington, D.C.: Government Printing
Office.
Department of Homeland Security (2014). 2014 Quadrennial
homeland security review. Washington, D.C.: Government
Printing Office.
Question 1
Hearty Fried Chicken bought equipment on January 2, 2010, for
$27,000.The equipment was expected to remain in service 4
years and to perform 6,000 fry jobs. At the end of the
equipment's useful life, Hearty
estimates that its residual value will be $3,000. The equipment
performed 600 jobs the first year, 1,800
the second year, 2,400 the third year, and 1,200 the fourth year.
Requirements
1.

8. Prepare a schedule of depreciation expense per year for the
equipment under the three depreciation methods. After two
years under double-declining-balance depreciation, the company
switched to the straight-line method. Show your computations.
Note: 3 depreciation schedules must be prepared.
2.
Which method tracks the wear and tear on the equipment most
closely?
Requirement 1. Prepare a schedule of depreciation expense per
year for the equipment under the three depreciation methods.
Begin with straight-line depreciation.
Depreciation
SL
–
Accum. Deprec., Book Value, Cost, Deprec. Cost, Residual
value, Useful life(units), OR Useful life(years)
=
÷
=
expense

9. Question 2
Peace Bank recently traded in office fixtures. Here are the facts:
Old fixtures:
New fixtures:
Cost, $92,000
Cash paid, $103,000, plus the old fixtures
Accumulated depreciation,$75,000
Requirements
1.
Record Peace Bank's trade-in of old fixtures for new ones.
2.
Now let's change one fact and see a different outcome. Peace
Bank feels compelled to do business with Elm Furniture, a bank
customer, even though the bank can get the fixtures elsewhere
at a better price. Peace Bank is aware that the new fixtures'
market value is only $117,000. Now record the trade-in.
Requirement 1. Record
Peace Bank's trade-in of old fixtures for new ones.

10. Journal Entry
Date
Accounts
Debit
Credit
Accum. Deprec.(new), Accum. Deprec.(old), cash, gain on
exchange of assets, lost on exchange of assets, office
fixtures(new), OR office fixtures((old)
Choose from any list or enter any number in the input fields and
then click Check Answer.

11. Question 3
Miracle Printers (MP) manufactures printers. Assume that MP
recently paid $600,000 for a patent on a new laser printer.
Although it gives legal protection for 20 years, the patent is
expected to provide a competitive advantage for only 8 years.
Requirements
1.
Assuming the straight-line method of amortization, make
journal entries to record (a) the purchase of the patent and (b)
amortization for year 1.
2.
After using the patent for 4 years, MP learns at an industry
trade show that another company is designing a more-efficient
printer. On the basis of this new information, MP decides,
starting with year
5, to amortize the remaining cost of the patent over two
remaining years, giving the patent a total useful life of 6 years.
Record amortization for year 5.

12. Requirement 1. (a)Record the purchase of the patent.
Journal Entry
Date
Accounts
Debit
Credit
Year 1
Accum. Depletion, Accum. Depreciation, Amortization
expense, Cash, Depletion expense, Depreciation expense,
Patents, OR Supplies

13. Question 4
Consider the following note payable transactions of Concert
Video Productions.
2011
May 1May 1
Purchased equipment costing $12,000 by issuing a one-year, 3%
note payable.
Dec. 31
Accrued interest on the note payable.
2012
May 1May 1
Paid the note payable at maturity.
Requirement
1. Journalize the transactions for the company.
Requirement 1. Journalize the purchase of equipment costing
$12,000 by issuing a one-year,
3% note payable.
General Journal
DATE
ACCOUNTS
DEBIT
CREDIT
2011
May.
1
Cash, Equipment, Interest expense, Interest payable, Note
payable-short term, sales revenue

14. Choose from any list or enter any number in the input fields and
then click Check Answer.

15. Question 5
The accounting records of Earth and WaterEarth and Water
Ceramics included the following at December 31, 2011:
Estimated warranty payable
Beginning balance
3,000
In the past, Earth and Water's warranty expense has been 6% of
sales. During 2012, Earth and Water
made sales of $103,000 and paid $4,000 to satisfy warranty
claims.
Requirements
1. Journalize Earth and Water's warranty expense and warranty
cash payments during 2012. Explanations not required.
2. What balance of Estimated warranty payable will
Earth and Water report on its balance sheet at December 31,
2012?
Requirement 1. Journalize the warranty expense.
Journal Entry
Date
Accounts
Debit
Credit
Accounts payable, Cash, Est. warranty payable, sales revenue,
sales tax payable, OR warranty expense

16. Choose from any list or enter any number in the input fields and
then click Check Answer.
Question 6
The following transactions of San FranciscoSan Francisco
Pharmacies occurred during 2010 and 2011:
Data table
2010
Jan 9- Purchased computer equipment at a cost of $8,000,

17. signing a six-month, 8% note payable for that amount.
29- Recorded the week's sales of $69,000, three-fourths on
credit, and one-fourth for cash. Sales amounts are subject to a
6% state sales tax.
Feb 5- Sent the last week's sales tax to the state.
28- Borrowed $204,000 on a four-year, 9% note payable that
calls for $51,000
annual installment payments plus interest. Record the short-
term and long-term portions of the note payable in two separate
accounts.
July 9- Paid the six-month, 8% note, plus interest, at maturity.
Aug 31- Purchased inventory for $9,000, signing a six-month,
10% note payable.
Dec 31- Accrued warranty expense, which is estimated at 3% of
sales of $605,000.
31- Accrued interest on all outstanding notes payable. Make a
separate interest accrual for each note payable.
2011
Feb 28- Paid the first installment and interest for one year on
the four-year note payable.
28- Paid off the 10% note plus interest at maturity.
Requirement
1. Journalize the transactions in San Francisco's general journal.
Explanations are not required.
Requirement 1. Journalize the transactions in San Francisco's
general journal. Explanations are not required.
First, journalize the purchase of computer equipment.
General Journal
DATE
ACCOUNTS
DEBIT
CREDIT
2010

18. Jan.
9
Accounts receivable, Cash, Computer equipment, Est. warranty
payable, interest expense, Interest payable, Inventory, Note
payable- long term, Note payable- short term, sales payable,
sales revenue, sales tax payable, OR warranty expense
Question 7
Skylar Systems completed the following stock issuance
transactions:
June 19
Issued 1,900 shares of $1 par common stock for cash of $13.50
per share.

19. July 3
Sold 260 shares of $2.00, no-par preferred stock for $13,000
cash.
11
Received equipment with market value of $22,000. Issued 9,000
shares of
the $1 par common stock in exchange.
Requirements
1.
Journalize the transactions. Explanations are not required.
2.
How much paid-in capital did these transactions generate for
Skylar Systems?
Requirement 1. Journalize the transactions. Explanations are not
required.
Begin by journalizing the transaction from June 19.
Journal Entry
Date
Accounts
Debit
Credit
June
19
Cash, common stock, equipment, inventory, paid-in capital in
excess of par, preferred stock

20. Choose from any list or enter any number in the input fields and
then click Check Answer.
Question 9
The charter for TVKXAS−TV, Inc. authorizes the company to
issue 100,000 shares of
$44, no-par preferred stock and 500,000 shares of common
stock with $1 par value. During its start-up phase, KXAS
completed the following transactions:

21. Sept. 6- issued 250 shares of common stock to the promoters
who organized the corporation, receiving cash of $7,000.
12- issued 400 shares of preferred stock for cash of
$28,000
14- issued 1,100 shares of common stock in exchange for
land valued at $17,000
30- closed net income of $31,000 into retained earnings
Requirements
1.
Record the transactions in the journal.
2.
Prepare the stockholders' equity section of the KXAS−TV
balance sheet at
September 30, , 2010.
Requirement 1. Record the transactions in the journal.
Journal Entry
Date
Accounts
Debit
Credit
Sept
6
cash, common stock, income summary, land, paid-in capital in
excess of par, preferred stock, retained earnings

22. Question 9
B-Wireless needed additional capital to expand, so the business
incorporated. The charter from the state of Georgia authorizes
B−Mobile to issue 80,000 shares of 7%, $150 par preferred
stock and 120,000 shares of no-par common stock. B−Mobile
completed the following transactions:
Dec
2
Issued
18,000 shares of common stock for equipment with a market
value of $110,000
6
Issued 1,000 shares of preferred stock to acquire a patent with a
market value of $150,000

23. 9
Issued 10,000 shares of common stock for cash of $50,000
Requirements
1.
Record the transactions in the journal.
2.
Prepare the stockholders' equity section of the B−Mobile
Wireless balance sheet at December 31. The ending balance of
Retained earnings is $90,000.
Requirement 1. Record the transactions in the journal.
Record the Dec. 2 issuance of common stock.
Journal Entry
Date
Accounts
Debit
Credit
Dec.
2
cash, common stock, equipment, paid-in capital in excess of
par, patent, preferred stock, retained earnings, treasury stock

24. Choose from any list or enter any number in the input fields and
then click Check Answer.
Accum. Depr
Discussion Question: Explain the relationship between risk,
threat and consequence. Use at least two examples at the local
level of government in your response.
Your initial post should be at least 350 words.