When selecting countermeasures, the most important factor is the overall risk posed to the asset or operation.
This includes both the likelihood of a threat and the potential impact. Cost, criticality, and probability are components of the risk equation but are not stand-alone decision criteria.
A (Cost) is important for feasibility but follows risk evaluation.
B (Probability) and C (Criticality) contribute to risk but don't outweigh it individually.
References:
PSP Study Guide - Risk Management and Countermeasure Selection
POA Manual - Integrated Risk Assessment Framework

Annual Loss Expectancy (ALE) is calculated as:
ALE = Single Loss Expectancy (SLE) × Annual Rate of Occurrence (ARO),
which reflects the impact (SLE) and the frequency (ARO) of an event. This formula is a key component in risk assessment for determining expected financial loss.
A, B, and C are partially correct but not the accepted risk formula framework.
References:
PSP Study Guide - Risk Quantification Techniques
POA Manual - Risk Assessment and ALE Formula

Comprehensive Detailed Explanation:
When assessing bombing risk, proximity to high-value or symbolic targets is a significant factor. Even if the facility itself isn't a primary target, it may suffer collateral damage due to its location near another targeted building. This is a key aspect of blast risk assessments.
A and C (urban area, high occupancy) increase general risk but are not definitive on their own.
D (domestic/international tenants) may affect threat level but is less relevant than target adjacency.
References:
PSP Study Guide - Bomb Threat and Blast Risk Assessment
POA Manual - Facility Vulnerability Evaluation

Insurance is not a substitute for a security program. It only compensates for loss after it occurs and does not prevent incidents. A comprehensive security program includes preventive measures such as access control, surveillance, personnel training, and emergency planning, which work in tandem with insurance as part of a broader risk management strategy.
References from PSP: ASIS POA - Insurance vs. Security Controls; PSP Study Guide - Prevention vs.
Compensation