As well as covering highlights of the week’s news, we have spent a lot of time in this Newsletter talking about past attacks; current threats; and their causes and contributing factors. For the next couple of weeks, we will turn our attention toward practical measures that people can take to improve security. We begin this week with a feature article on “Asset Management Considerations in Threat Analysis, Risk Planning and Mitigation”. Contact us by email to and we can email you a PDF version of this longer-than-usual document.

CONTENTS:

NEWS HIGHLIGHTS OF THE WEEK:

1. World
2. Africa
3. Americas
4. Asia Pacific
5. Europe
6. Middle East
7. South Asia
8. Cyberterrorism and Information Warfare
9. Finance
10 Human Rights
11. Law and Legal Issues
12. Narco-terrorism
13. Transportation
14. Weapons of Mass Destruction
15. Recently Published

FEATURE ARTICLE:
Asset Management Considerations in Threat Analysis, Risk Planning and Mitigation.

NEWS HIGHLIGHTS OF THE WEEK

1. World

The week began with the presentation of UK Prime Minister Tony Blair presenting his dossier on Iraq. It contained little new information, apart from allegations that attempts had been made by Iraq to purchase uranium from Africa. Coverage of the dossier is widely available; see citations in “Recently Published”, below.

All sources agree that there is no indication of an imminent threat from Iraq. This provides a window of opportunity for diplomatic efforts prior to launching an attack. Diplomatic efforts through the United Nations has received broad popular support internationally, in recent US opinion polls, and for the first time in public statements by leading figures in the Democratic Party.

As these efforts go on, the Bush administration continues to insist that it will act as it wishes in this matter, and has attempted to bolster its case with unsupportable allegations of direct ties between Iraq and al Qaeda.

Turning attention to the immediate threat in the Middle East, the United Nations Security Council passed a resolution that called on Israel to immediately end its siege of Yasser Arafat’s compound, end its incursion into Palestinian towns and to stop the destruction of Palestinian property. Apart from the US abstention, the resolution was passed unanimously. Israel refused to comply with this measure until additional pressure was brought to bear by the US, and have completed a limited push-back from Arafat’s headquarters.

The Financial Times released a special report “World Economy: Politics, oil, global stock markets and the threat of war”, published on September 27, in conjunction with the IMF and World Bank meetings going on in Washington DC. FT summarizes their report as follows:

“At a glance
The IMF and the World Bank know they are dealing with a changed world since September 11, one in which there is new impetus to prevent economic failure leading to failed states. The industrialised economies, however, have their own problems dealing with corporate corruption, recession and the threat of war.
The key issues:
POLITICS: The IMF is resisting a culture of dependency, particularly from Latin American states where defaulters have historically relied on automatic bail-outs.
GROWTH: US consumers have been the power behind world growth for the last decade. If the Eurozone remains weak, where will renewed demand for goods and services come from?
OIL: The ‘war premium’ has been factored in to the price of oil and supplies are unlikely to falter.”
[FT reports are online at http://news.ft.com/ftreports]

2. Africa

The famine in southern Africa is accelerating partly because of the effects of widespread HIV infection. HIV has had a devastating impact on agricultural productivity. Hunger weakens the infected, and makes the healthy more vulnerable to infection.

Angola’s disarmed UNITA rebels continue to wait for help in remote camps. To understand the scale of the problem, see Michael Dynes “Disarmed rebels hungry and in fear of betrayal” in The Times (London) on September 26, online at http://www.timesonline.co.uk/article/0,,3-427036,00.html and Henri E. Cauvin’s report “Rebels Without a War Wait for Help in Angola” in the New York Times, September 29, 2002.

In Chad, Youssouf Togoimi has died of wounds from a land mine. He was the leader of the rebel Movement for Democracy and Justice in Chad.

In Congo Brazzaville, French priest Jean Guth who had been kidnapped by the Ninjas in March, was found dead of untreated malaria.

Democratic Republic of Congo’s peace efforts are reaching a critical stage as foreign troops from Rwanda, Uganda and Zimbabwe continue their withdrawal. As the troops withdraw, local militias have begun looting and there are fears of a possible power vacuum. Of particular concern is the security of a US-supplied nuclear reactor and uranium mine.

Ivory Coast is experiencing a military uprising, characterized as an attempted coup by the government and as a fight against dictatorship and abuse by the rebel soldiers. Troops from the US, UK, and France have arrived to evacuate their nationals and Nigeria is offering troops to help end the mutiny. Fighting has so far killed at least 270 people. Diplomats from France and Africa are attempting diplomatic measures to stabilize the situation. Cocoa prices have hit a 16-year high.

Madagascar’s most wanted man, Colonel Ancelin Coutiti, has been arrested for his role in kidnappings, beatings, and torture of opponents of then President Ratsiraka during the dispute over the presidential election.

Nigeria’s attempts to retrieve millions from Swiss bank accounts developed by the late military dictator Sani Abacha have failed with his son Mohammed Abacha’s failure to complete the necessary documents. His signature was a condition of his recent release from prison. For details see “Nigeria struggles to repatriate Abacha millions” by Andrew Parker and Jimmy Burns, Financial Times, September 24, 2002.

Rwanda has protested the release of Hutu rebel leaders in the Democratic Republic of Congo rather than repatriating them to Rwanda.

The United Nations Security Council has authorized extension of a reduced peacekeeping force in Sierra Leone for another eight months.

South Africa joined other African countries to vigorously deny that it had been approached by Iraq to supply nuclear materials. South Africa came up because it is the only African country with the capacity to enrich uranium.

Battles rage in Sudan between the southern rebels of the Sudan People’s Liberation Army and the Islamic government in the north. All flights to the south have been stopped.

Ugandan rebels of the Lord’s Resistance Army (LRA) destroyed a radio station.

Zimbabwe’s opposition has promised open defiance to the government’s policies. But they have not received anticipated support from the Commonwealth, which has declined to impose additional sanctions.

3. Americas

Colombia is working with US support to tackle rebel and paramilitary groups as well as the narcotics trade. The US will provide training to Colombian soldiers and police. Colombian President Uribe is investigating assistance from the UN in ending the civil war. Carlos Castano, head of the United Self-Defense Forces of Colombia (AUC) has said he will surrender to the US authorities seeking to extradite him on narcotics charges, of which he claims to be innocent.

In the US, hundreds of demonstrators protesting outside the IMF and World Bank meetings have been arrested in Washington, DC. The massive police presence of over 3,000 seems to have been considerably larger than the group of demonstrators.

The US Congress is focused on policy towards Iraq. After a number of contentious exchanges, they are working with the administration to develop a resolution that would specify the authority granted the President in non-emergency military actions against Iraq. The Homeland Security bill has hit a roadblock over waiving existing federal labor rights in this department.

Investigations into intelligence failures continue, reviewing prior knowledge of suspects and the difficulty of following up on these leads and the limits of information sharing. It is likely that an independent panel will be created soon.

The “Code Orange” that warned of increased terrorist threats around September 11 has been reduced to Yellow.

The Immigration and Naturalization Service is still under intense scrutiny. Beginning October 1, Saudi Arabia, previously exempted from the tests required of other Middle Eastern countries, will also be fingerprinted and photographed. The system to track foreign students has been delayed again, and is beginning to have a negative impact on both the students and their schools. Note the article by Mark Clayton “Password, please” in The Christian Science Monitor, September 24, 2002.

Venezuela’s Supreme Court threw out two corruption charges against President Hugo Chavez. Tensions between Chavez and his opponents continue to rise.

4. Asia Pacific

Australian immigration policies are under attack. Human Rights Watch has issued a critical report. Security guards at the Port Hedland center went on strike for fear of safety, charging that detainees have previously rioted and had hunger strikes and have collected weapons.

The border between Burma and Thailand will reopen in the next few weeks. It has been closed over disputes regarding Shan rebel forces and cross-border incursions. Burma has freed more political prisoners.

China experienced another incident of hacking by supporters of Falun Gong, who took over the broadcasting to pass on their own messages. China alleges the hacking took place from Taiwan, a charge the Taiwan government denies.

Hong Kong has delivered its anti-subversion law. Its stringent provisions could threaten civil rights. This begins a 3-month consultation period.

East Timor has become the 191st member of the United Nations. (Congratulations!)

Indonesian investigators are looking into the charge that army special forces were responsible for an ambush in Papua that killed two Americans and one Indonesian last month.

North Korea and the US plan to begin discussions, despite US administration characterizations of North Korea as part of an “axis of evil” that includes Iraq and Iran.

Japan and South Korea are looking for apologies and positive steps from North Korea to recover from the disclosure of the kidnappings of their citizens in North Korean training exercises.

In the Philippines, Abu Sayyaf accused the government of sacrificing the two hostages (Martin Burnham and Ediborah Yap) killed during a rescue attempt in June.

5. Europe

Belarus and Ukraine have both denied allegations that they have provided weapons systems to Iraq in violation of United Nations sanctions.

Croatia has refused to extradite General Janko Bobetko under a warrant from the International Criminal Tribunal for Yugoslavia in the Hague.

French police are investigating the presence of plastic explosives found on a Royal Air Maroc plane. They believe this was part of an attempted bombing.

Georgian President Shevardnadze is continuing law enforcement exercises to clear the Pankisi Gorge of suspected criminals. He has invited Russian authorities to observe the operations. Fighting between Russian troops and Chechen rebels continues to threaten the border.

Chechen rebels shot down another Russian helicopter, killing both pilots. Heavy fighting continues near the border, amid accusations that the rebels are crossing from Georgia. Dozens have been killed.

Spain had two bombings attributed to Basque separatist group ETA. In a premature explosion, two suspected militants were killed. The next day, a car bomb killed one policeman and injured three, in an incident for which ETA claimed responsibility.

In the UK, an anti-war demonstration in London attracted more than 150,000. In Leicester, an anti-Islamic march planned by the National Front was banned for security purposes. In Belfast, an Ulster Volunteer Force parade to mark its 90th anniversary passed off peacefully.

The first annual report of the Policing Board in Northern Ireland has shown a 300 percent increase in the number of shootings, and 80 percent increase in bombings and a reduction in successful detection to only 20 percent. For a sense of what this is like, read “Belfast confetti” by David McKittrick, The Independent, September 25, online at http://news.independent.co.uk/uk/ulster/story.jsp?story=336392

Loyalist paramilitary leader, Johnny “Mad Dog” Adair, and his ally John White have been expelled from the Ulster Defence Association (UDA). This could signal the start of another loyalist feud.

6. Middle East

In Algeria, seven people were killed by suspected Islamic militants, possibly from the Armed Islamist Group (GIA).

In the occupied Gaza Strip, Israeli forces have fired missiles and conducted raids that have killed a dozen more Palestinians, all but three civilians. Mohammed Deif, head of the military wing of Hamas, was the target of one attack, but survived. Forty bystanders were injured, including fifteen children, as a result of this attempt. Palestinians marched, defying curfews, to protest this attack and to commemorate the second anniversary of their intifada (uprising) against Israel. (At the time of the anniversary, Arafat was still under siege.) Four were killed during these demonstrations.

Iranian President Mohammed Khatami has presented a bill in parliament to strengthen his position vis a vis the judiciary.

For recent information on Iraq and Israel, see World news, above.

In Lebanon, the conflict with Israel over water is unresolved. For a vivid description of the disputed area, read Robert Fisk’s article “Water war looms as Israel tells Lebanon to halt river works” in The Independent, September 26, 2002. Additional border worries are described in Michael Gordon’s article in the New York Times of September 27, “Militants are said to amass missiles in south Lebanon”.

Saudi Arabian men previously exempted from US immigration tests required of other Middle Eastern countries, will be fingerprinted and photographed beginning October 1.

In his shattered West Bank headquarters, Palestinian leader Yaser Arafat has finally emerged, defiant after the ten-day long siege and the almost complete reoccupation of the West Bank by Israeli troops. Following a new UN resolution and strong pressure from the US, the troops pulled back from the compound and removed the barbed wire that had surrounded the rubble.

Two British human rights activists have called the killing of a 13-year old boy last week an unprovoked attack. The Israeli army is investigating their allegations.

7. South Asia

Afghanistan’s overstretched interim government contends with lawlessness, a flood of refugees, and the continued absence of promised aid. Without financial support, guaranteeing security will be impossible. Fighting between rival warlords in the north killed 17. There was a bombing in an apartment block near the US embassy that injured two. Opium shipments are up.

In Bangladesh, at least ten people were killed and over 200 injured in a group of four bomb attacks. Six people have been detained. It is not yet known who is responsible for the attacks.

In the Indian state of Gujarat suspected Islamic militants stormed a Hindu temple, shooting at hundreds of worshippers. They killed 31 and injured at least 74. Indian security forces attacked the two gunmen who had been armed with automatic weapons and grenades, and killed the two men after a 14-hour battle. Two men are being questioned in connection with the attack. Thousands of security forces have been called in to provide security against reprisal violence. A national strike in India was called to protest the attack.

In Bangalore, protests over water continue. In addition, police raided the house of suspected Islamic militants, killing five.

And India has joined the group of countries protesting its alleged association with Iraq in the British dossier that named an Indian engineering firm, NEC Engineers, as one that provided materials for its missile program.

The second round of voting in Indian-administered Kashmir took place despite a separatist boycott, low turnout, and a series of militant attacks including grenade attacks and gun battles that have killed and injured dozens.

In the latest fighting between the Nepalese government and Maoist rebels, at least 150 rebels have been killed as well as several soldiers.

Unidentified gunmen executed seven people at a Christian charity in Karachi, Pakistan. Over 10,000 Pakistani Christians gathered to commemorate the killings and demonstrate for improved security. Pakistan has stepped up the police presence and is working with American officials to continue hunting down suspected militants.

The Sri Lankan government and Tamil Tiger rebels have held their first prisoner exchange, demonstrating progress in the peace process.

8. Cyberterrorism and Information Warfare

A report from mi2g issues on September 25 claims that “September 2002 has seen 9,011 overt digital attacks so far, shattering all previous monthly records. The record was previously held by August 2002 (5,830) and by July 2002 (4,094) before that. Monthly records have now been broken for three consecutive months.” See http://www.mi2g.net/cgi/mi2g/press/images/Digital_Attacks_Sep25_2002.pdf for a graphic illustration.

The US Bush administration has released its draft “National Strategy to Secure Cyberspace”. (http://www.whitehouse.gov/pcipb/)

9. Finance

The Financial Action Task Force (FATF) has decided to stop listing non-cooperative countries on its blacklist for one year, in favor of developing a more cooperative approach with the IMF and World Bank.

A petition filed in federal court in New York requested that JP Morgan Chase release the funds to pay judgements against Iraq as compensation to Americans held hostage in the 1990 war. The US government has frozen Iraqi assets.

10. Human Rights

Afghanistan’s first war criminal has been convicted and sentenced to 20 years in prison. Abdullah Shah was convicted of rape, extortion, and burning to death fifty people. See Kate Clark’s report, “First Afghan war criminal is jailed” in The Independent, September 26, 2002, online at http://news.independent.co.uk/world/asia_china/story.jsp?story=336668

Croatia has refused to extradite General Janko Bobetko under a warrant from the International Criminal Tribunal for Yugoslavia in the Hague.

A group of nine Israeli women’s groups called the Coalition of Women for A Just Peace in Israel has written a letter in support of Palestinian victims of the 1982 Sabra and Shatila refugee camp massacres in Lebanon. (This week marked the 20th anniversary of the massacres.) The letter called for the leaders of the war crimes, including Ariel Sharon, to be brought to justice.

Amnesty International published a report condemning the US practice of continuing to execute children under the age of 18. They report that in the past ten years, two-thirds of such executions were carried out in the US. Meanwhile, a judge in Vermont has ruled the federal death penalty is unconstitutional

11. Law and Legal Issues

The Bloody Sunday inquiry into the events of January 1972 in Londonderry, Northern Ireland, has moved to London to hear evidence from former British soldiers.

Anup Chetia (real name Golap Baruah), leader of the Indian rebel group the United Liberation Front of Assam, has been sentenced to seven years in prison in Bangladesh for illegally possessing a satellite phone.

Colonel Ancelin Coutiti, has been arrested in Madagascar for his role in kidnappings, beatings, and torture of opponents of then President Ratsiraka during the dispute over the presidential election. He had a price of over $100,000 on his head and joins around 50 other Ratsiraka supporters in prison.

In Spain, Ghasoub Al-Abrash Ghalyoun and Mohamen Khair al-Saqq, accused of videotaping US landmarks to help al Qaeda, have been freed on bail. Abdalrahman Alarnaot Abu-Aljer is still in custody.

Sheik Mohamed Abdirahman Kariye has pleaded not guilty to federal charges of document fraud. Tests that showed explosive residues on his bags have been thrown out after review in an FBI crime lab that showed the bags had no such residues.

John Walker Lindh, the “American Taliban” has been cooperating with authorities under his plea agreement. Authorities have now recommended that as a result of his full cooperation his sentence should be 20 years in prison.

Wan Min Wan Mat has been arrested in Malaysia on charges of participating in the Malaysian Militant Group (KMM).

Andre Choukri and William McCoulough, leading loyalists of the Ulster Defence Association (UDA) in Northern Ireland, have been arrested on firearms charges.

Mekki Hamed Mekki Hamed Mekki was arrested in North Carolina on immigration charges. He is being held without bail although no links to terrorism have been presented and the government have only indicated that additional charges may follow. In Maryland, three more people have been held without bond on immigration charges as they are investigated for possible links to terrorism. They are Unsir Hafeez, Reza Zazai and Choudry Jamil Khan.

Slobodan Milosevic’s trial on genocide charges has now begun in the Hague. He claims that the Srebrenica massacre was a western conspiracy designed to frame the Serbs to make it appear as if they had committed genocide.

“Has the Justice Department mishandled the case against Zacarias Moussaoui?” asks Seymour Hersh in an article in The New Yorker of September 30. Among other things, classified documents were released to him and have now been retrieved.

Kyaw Ne Win, grandson of Burma’s former leader, General Ne Win, has been found guilty of involvement in a conspiracy to overthrow the military government and sentenced to seven years of hard labor on seven counts. His two brothers and a son-in-law have been sentenced to death for their role in the plot.

Three Mexican Generals, Francisco Quiros, Mario Arturo Acosta and Francisco Barquin are charged with the murder of 143 people in the “dirty war” in the 1960s and 1970s.

Richard Reid, on trial for airline sabotage using explosives hidden in his shoes, will have his emails included in evidence in his trial, due to begin November 4.

Mouloud Sihali of London, England, has been charged under the Terrorism 2000 Act.

The US Justice Department has appealed the unanimous ruling of the secret Foreign Intelligence Surveillance Court against their requested use of wiretapping. The appeal is being heard by the Foreign Intelligence Surveillance Court of Review.

Yemen has arrested another dozen men suspected of being al Qaeda associates.

12. Narco-terrorism

Production of Afghanistan’s poppy crop has recovered from the ban under the Taliban. In 2001, only 185 tons were produced. This year the opium crop is expected to be between 1,900 and 2,700 metric tons.

Carlos Castano, head of the United Self-Defense Forces of Colombia (AUC) has said he will surrender to the US authorities seeking to extradite him on narcotics charges, of which he claims to be innocent. Colombia has arrested more than 80 people charged with involvement in embezzling US anti-drugs money provided under Plan Colombia.

The government in Peru has signed voluntary agreements with around 300 coca farmers to compensate then to NOT grow it.

13. Transportation

Boston, Massachusetts’ Logan Airport is the first to implement high-tech scanners to check the authenticity of official documents such as drivers licenses and passports. This follows the discovery that twenty former employees had obtained security clearance using false papers.

14. Weapons of Mass Destruction

As foreign troops withdraw from Democratic Republic of Congo, there is particular concern over the security of a US-supplied nuclear reactor and uranium mine. See the article in September 26’s Financial Times, “Congo ‘sought US help on uranium’”.

Turkish police seized some 15 kilos of weapons grade uranium smuggled from Eastern Europe.

The US government has released detailed guidelines for smallpox vaccination. (http://www.cdc.gov/)

15. Recently Published

Cauvin, Henri E. “Rebels Without a War Wait for Help in Angola” in the New York Times, September 29, 2002.

Clark, Kate, “First Afghan war criminal is jailed” in The Independent, September 26, 2002, online at http://news.independent.co.uk/world/asia_china/story.jsp?story=336668

Clayton, Mark “Password, please” in The Christian Science Monitor, September 24, 2002.

Dynes, Michael “Disarmed rebels hungry and in fear of betrayal” in The Times, September 26, 2002, online at http://www.timesonline.co.uk/article/0,,3-427036,00.html

Financial Times World Report “Ethiopia: Politics, war, coffee, access to the sea – and how to negotiate with taxi drivers” in the Financial Times, September 24, 2002. http://www.ft.com/ethiopia2002

Financial Times World Report “India: Politics, economy, diplomacy, tourism and Bollywood’s chaotic finances” in the Financial Times, September 23, 2002. http://www.ft.com/india2002

Fisk, Robert “Water war looms as Israel tells Lebanon to halt river works” in The Independent, September 26, 2002.

Gordon, Michael, “Militants are said to amass missiles in south Lebanon” in The New York Times September 27, 2002.

Hersh , Seymour “The Twentieth Man: Has the Justice Department mishandled the case against Zacarias Moussaoui?” in The New Yorker, September 30, 2002.

Huband, Mark and James Lamont. “Nuclear Materials” Congo ‘sought US help on uranium’” in Financial Times, September 26, 2002. http://www.ft.com/weapons

McKittrick, David. “Belfast confetti” in The Independent, September 25, 2002, online at http://news.independent.co.uk/uk/ulster/story.jsp?story=336392

Parker, Andrew and Jimmy Burns “Nigeria struggles to repatriate Abacha millions” Financial Times, September 24, 2002.

COVERAGE ON THE UK DOSSIER:

BBC Coverage on the British Iraq dossier includes:
“Blair outlines Iraq evidence”
“Iraq ‘sought African uranium’”
“Online demand high for Iraq dossier” offers multiple options for downloading the full dossier
“UN lukewarm on Iraq dossier”

Evans, Michael and Richard Beeston “Saddam’s nuclear shopping tour” in The Times (London) September 25, 2002. Online at http://www.timesonline.co.uk/article/0,,2-426418,00.html

Fidler, Stephen and David White “Intelligence report says Baghdad is ready to use chemical and biological weapons” in Financial Times, September 25, 2002. NOTE: There is additional coverage in this issue of the paper. We also recommend a special series published July 9-11, 2002 that gives extensive coverage of “The Weapons Threat”.

Fisk, Robert. “The dishonesty of this so-called dossier” in The Independent, September 25, 2002. Online at http://argument.independent.co.uk/commentators/story.jsp?story=336404

Hoge, Warren. “Blair Says Iraqis Could Launch Chemical Warheads in Minutes: Sees Nuclear Weapon Capability in 1 to 5 Years” in The New York Times, September 25, 2002

Peterson, Scott. “The difficult burden of proof: British Prime Minister Tony Blair yesterday released a dossier on Iraq’s weapons program” in The Christian Science Monitor, September 25, 2002

COVERAGE ON THE “DOUBLE STANDARDS” OF UN RESOLUTIONS:

Jordan, Michael J. “UN’s ‘two standards’ under fire” in The Christian Science Monitor, September 27, 2002

Negotiations Affairs Department “Double Standards – How the International Community has Taught Israel that it is Above the Law” September 24, 2002. Online at http://www.nad-plo.org

Whitaker, Brian. “Nothing doing” in The Guardian, September 24, 2002. Online at http://www.guardian.co.uk/0,3858,4507770,00.html

FEATURE ARTICLE: Asset Management Considerations in Threat Analysis, Risk Planning and Mitigation

Even before undertaking a threat analysis or beginning a risk planning and mitigation effort, it is essential to understand the nature of corporate assets. A comprehensive asset inventory satisfies a number of essential benefits by:

* Providing the basis for valuation and asset prioritization
* Acting as the focal point for documentary evidence for insurance, taxes, etc.
* Satisfying compliance requirements in regulated industries
* Supplying an ongoing management tool that serves general business purposes
* Establishing a starting point for compliance with new accounting requirements around asset management, particularly changes in handling goodwill and intangibles
* Providing input into Return on Investment and similar calculations

The approach to taking inventory is particular to an individual company and industry, but there are some general considerations that may provide a helpful starting point to people planning such an exercise. More specific information by industry and application is available through trade associations or, in the case of regulated industries, through the relevant government offices. An easy way to find out about available products and information resources is online, using a web search engine such as http://www.alltheweb.com/ or .

The following outline provides a general framework that can be used to list assets and gather relevant information that will contribute to developing valuations, threat analysis, and to risk management and business continuity plans. In many cases, this information is also required for accounting and compliance purposes.

It covers four general areas: Planning and Preparation; Tangible Assets; Intangible Assets; and Maintenance and Operational Support

This outline also highlights a few examples of areas specific to terrorist threats that may not have been taken into account previously.

In all cases, this is only to be considered a high-level approach to a complex problem. As the saying goes, the devil is in the details....

ASSET INVENTORY CHECKLIST

I.   Planning and Preparation

Identify the business goals that are driving this project and how they will be used to measure its success. NOTE: An asset inventory, like any other project, MUST be guided by well-defined business goals. Only these can identify whether a project has succeeded. TIP: ROI measurements for enterprise asset management systems typically include reductions in inventory and material cost, improvements in productivity and equipment utilization, and optimization of company asset valuation.

I.A.   Select the team

I.A.1.   Designate the person responsible for the overall project coordination and management.
***TIP: If this is the first time you are undertaking a full asset inventory, it is a good idea to bring in an outside advisory team and temporary support (e.g. item I.A.3). The initial review requires different skills and staffing levels than maintenance, operational support and subsequent audits or reviews.

I.A.2.   Determine the departments and individuals that will be involved in the team.
***TIP: Include the risk management and accounting functions in the planning stage.
Identify the individuals who will carry out the actual inventory procedures. Tip: This is a great project to involve interns. Not only can they carry out clerical counting and documentation functions, but MBA and accounting students get good experience in asset valuation by assisting in this process.

I.A.3.   Identify contingency staffing options.
You may not have full time staff dedicated to terrorist threat analysis, specific types of asset management (such as intangible asset valuations) and so on. Consider bringing in experienced outside support for specialized functions, rather than asking someone to double up. It is better to use an experienced outside advisor for the first pass and for periodic audits.
***TIP: Never hire a consultant unwilling to train a replacement inside the company who can undertake maintenance and operational support after they leave.
Communicate this information, making sure to include all affected personnel.

I.B.   Design the process

I.B.2.   Identify existing processes and procedures, if available.

I.B.3.   Identify tools (software/hardware) that are available or can be acquired.
Choosing the appropriate tools is important, and must be taken in conjunction with the overall enterprise architecture and the requirements for the intangible assets of the corporation.
Identify material that needs to be kept confidential or secured. This may require separate, additional procedures.
(Note: Hazardous materials are subject to regulatory procedures for inventory management.)

I.B.4.   Determine the procedures to be used.
For example, if you are doing a physical inventory for a large warehouse, you need to determine whether to take a complete physical inventory or use a statistical sampling method. Similarly, you will need to establish procedures for handling discrepancies between prior counts, accounting records, and so on.

I.B.5.   Provision materials necessary for conducting the inventory.
This step may also include replacing items that have been moved to a different location, for instance if it is out for repair.
***TIP: Determine the optimal identification system for each asset. Computer equipment may be given a physical tag matched to a serial number while electronic records may be assigned a unique ID number.

I.B.6.   Develop operational backups.
For example, before conducting a software audit across the network, you would need to complete a full system-level backup. You may also need to provide incremental staff coverage for some functions as the inventory proceeds.

I.B.7.   Document everything and communicate it to all personnel involved or affected.

I.C.   Develop the schedule
***TIP: Make sure to include cut-off dates and critical path deadlines e.g. dates required for regulatory compliance.

I.D.   Implement tracking and reporting systems

I.D.1.   Establish a version control system to manage process changes as they occur. In particular, make sure the procedures for communicating such changes are well established.

I.D.2.   Determine discrepancy management and audit procedures.

I.E.   Design the inventory forms (paper or electronic) for capturing the initial data. Identify capital versus non-capital items. Group asset types, but acknowledge that tangibles and intangibles will be documented differently.
***TIP: Capture data in sufficient detail to provide the necessary input into threat assessment and risk assessment processes.

-- Example of fields that could be used in a physical inventory count form: Inventory number, Description, [Date acquired/Acquisition cost/ Replacement cost], Location, Prior quantity, Count, Discrepancy, Reason for Discrepancy

-- Examples of fields that could be used in an employee inventory form: Employee name, Years of experience, Categories of experience, Education, Training, Certification, Languages, Categories of Knowledge, Performance ratings

I.F.   Design the inventory reports

I.G.   Identify how the inventory will be integrated into existing business processes, including threat assessment and risk assessment as well as standard accounting processes.
Determine ongoing operational support and maintenance requirements.
***TIP: Make sure this is taken into account at the initial planning stage and that all required documentation and training has been made available. This is particularly important if you are using outside help for any parts of this process.

II.   Tangible Assets
Tangible assets are those things you can touch; that can be counted, weighed, or measured. There are a number of asset management tools that assist with this type of inventory. They range from simple home inventory spreadsheets, through complex inventory management systems as part of an Enterprise Resource Planning (ERP) system for large manufacturing companies.

II.A.   Infrastructure
Even though you may not own your own infrastructure, it is important to document it for analyzing threats and risks and for business continuity planning. Make sure that this is correlated to the appropriate relationships with your suppliers, as documented in III.B.3

II.A.1.   Electricity
II.A.2.   Fuel (heat, transportation, backup generators)
II.A.3.   Water and sewage
II.A.4.   Telecommunications
II.A.5.   Transportation
***TIP: redundancy of infrastructure assets is important for business continuity. Lack of backups creates a high-risk situation.

II.B.   Perimeter
Use a map to guide the assessment.

II.B.1.   Access routes (by road, air, water, rail, on foot)
II.B.2.   Building access
II.B.3.   Grounds
***TIP: Make sure to document the plantings. Appropriate plantings can be used to mitigate access threats.

II.C.   Premises/Facilities
Use a floor plan to guide the room by room assessment. Where applicable, use physical tags and record serial numbers etc. Examples of items to document include: Carpets/Tiles, Windows/Screens/Shades/Drapes, Walls, Woodwork, Tiles, HVAC, and Plumbing

II.D.   Fixtures and Fittings
Group similar items, using the floor plan as a guide. Examples of items to document include: Lights, Window Screens, Plumbing equipment (toilets, tubs, pipes), Refrigeration and Canteen facilities

II.E.   Equipment
II.E.1.   Embedded equipment
II.E.2.   Computer hardware
***TIP: Don’t forget company-owned portable equipment and items used at home. They may require special secure identification systems. These can, for example, help to prevent theft of portable equipment during travel.
II.E.3   Peripherals
II.E.4   Office equipment Tip: Clearly identify items that are leased or rented.

III.   Intangible Assets
Although intangible assets are responsible for the greatest value inside companies, it is only recently that measurements have evolved to take them into account. Because they have such a significant impact on a company’s valuation, new accounting rules are being put into place to help companies effectively identify, measure, and report on these assets, in an accurate and consistent manner. While these measures are still evolving, it is important to be in a position to both respond to changes in accounting practices and to take optimize your use of these assets and, hence, your valuation.

III.A.   Intellectual Property
III.B.1.   Proprietary Technology
III.B.2.   Patents
III.B.3.   Copyrights
III.B.4.   Trademarks
III.B.5.   Other miscellaneous components of goodwill, such as rights of publicity

III.B.   Relationships
III.B.1.   Employees
III.B.2.   Customers
III.B.3.   Suppliers
***TIP: Relationships generate the largest areas of risk. Most fraud comes from ones own employees. The widespread use of outsourcing has led to high risks from third party suppliers and from international relations, where the failures of entire countries has led to unanticipated consequences. This area of asset capture and measurement is perhaps the most critical of all.

III.C.    Knowledge
III.C.1.   Human capital
III.C.2.   Organizational systems
III.C.3.   Documentation
(Note: Records management is an important outgrowth of this item. At one extreme, this could involve the difficult task of capturing the experience hidden within human capital. But at even the most basic level it includes

* Identifying records of all types, including personal papers, publications, reference material, and records (including permits, licenses, etc.)
* Identifying records on all media, including paper and all electronic versions:, including multimedia files and email
* Documenting the storage location and mapping multiple formats for the same data)

III.D.   Digital Properties
III.D.1.   Licensed software
III.D.2.   Source code
III.D.3.   Corporate email
(See note on documentation, above. Corporate emails are now subject to regulatory requirements. Check for rules that may apply to your industry.)

IV.   Maintenance and Operational Support
Once you have the asset inventory in hand, make sure you keep it up-to-date! The maintenance and operational support systems should be identified in the initial planning phases.

Good luck!

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