Although the oil and gas industry has always encountered elements of risk, traditional risk meant dry holes, foreign investments, unstable nation states, new ventures, and the occasional natural hazard. Man-made catastrophic events were not part of the risk profile and merited little attention beyond risks associated with insider sabotage or vandalism. The terrorist attacks of Sept. 11, 2001, in New York and Washington, DC, changed that environment dramatically and added sharp new focus to the industry’s approach to risk.For reasons ranging from legal to fiduciary, quantifying and systematically analyzing this newly recognized risk have become increasingly important to an industry w...