Risk Reduction. In determining the Repurchase Price for Unit Holders pursuant to this Article Fifteen, the present value of the Partnership's Proved Developed Producing Reserves shall be reduced by 25% for risk and the present value of all other categories of Proved Reserves shall be reduced by 35% for risk. The risk reductions shall be subject to upward or downward adjustment by the General Partner if, during the period between the Appraisal Date and the Effective Date (as defined in Section 15.5), there has been a material increase or decrease in the current price of oil or gas or in the estimated amount of the Partnership's Proved Reserves.
Risk Reduction. Lessee shall neither use nor permit the use of the Leased Premises in such a manner as to increase the rate of insurance thereon in excess of that in existence at the commencement of the Term hereof.
Risk Reduction. Reinforcing the Borrower’s capacity for ensuring the functioning of critical facilities and lifeline infrastructure and the continuity of service in relation thereto, during and after emergencies, through the active participation of SDS, SED, DPAE/FOPAE, and DABS in the preparation, pursuant to Law 400 of the Guarantor, and subsequent implementation, of engineering designs in respect of seismic mitigation and associated preventive maintenance plans for buildings and facilities in:
Risk Reduction. Licensee shall neither use nor permit the use of the Licensed Premises in such a manner as to increase the County’s exposure, which would affect the insurance premiums thereon in excess of that in existence at the commencement of the Term hereof.
Risk Reduction. Contractor shall neither use nor permit the use of the Assigned Premises in such a manner as to increase the County’s exposure, which would affect the insurance premiums thereon in excess of that in existence at the commencement of the Term hereof.
Risk Reduction. Whether or not the Licensee is authorized to sell alcohol at the Event, the Drug and Alcohol Plan must include appropriate procedures to reduce frequency and risks of illegal drug use and alcohol intoxication. The Drug and Alcohol Plan shall include the following:
Risk Reduction. In the SRMM, a Threat & Vulnerability Analysis (TVRA) is conducted to establish the risks for relevant assets in a SEGRID use case. See the figure below. Figure 10: Likelihood and impact estimation using the TVRA tool An asset is always linked to an obligation that must be fulfilled by a stakeholder (e.g. a DSO) in the use case. Risk is defined as (see Figure 10): Risk = Impact of a threat x Likelihood of a threat Where: • Impact is the obligation impact of the threat; if the threat becomes reality, it is the max- imum impact on the stakeholder’s obligations to which the asset is linked. This is com- bined with the intensity of an attack to obtain the final impact. • Likelihood is the likelihood that the threat becomes reality. As can be seen from Figure 11, this involves several aspects. First, the attack potential is estimated. The difficulty for the attacker of mounting an attack is rated based on five factors: time, experience, knowledge, opportunity, and equipment (tools). These aspects are mapped onto the vul- nerability rating. The vulnerability rating is an indication of the efforts required to per- form the attack. The vulnerability rating is then combined with the threat level to arrive at the likelihood of attack. Figure 11: Estimation of the likelihood of an attack scenario A security control can be selected to reduce the risk. A security control must be implemented by selecting a specific security measure. We want to establish how the security measure, once implemented, reduces the risk. We will therefore examine whether the security measure influ- ences one of the elements that collectively lead to the risk level. These elements are:
Risk Reduction. We have evaluated whether the four security measures would reduce the risks that were as- sessed on use case 2, scenario 2. This information is only available to SEGRID project partners and designated EU officials and is laid down in annex 3 of this document, which is classified as ‘EU Restricted’.
Risk Reduction. As grain prices rise, the value of the landowner’s bushels increases and rent goes up. Conversely, rent goes down if grain prices drop. For example: Assume the corn fixed bushel rent is 60 bu. and alternative corn prices are $4.50, $4.00 and $3.50 corn prices: 60 bushels × $4.50 = $270 rent per acre 60 bushels × $4.00 = $240 rent per acre 60 bushels × $3.50 = $210 rent per acre However, rent from a fixed bushel lease does not adjust due to changes in yield. The landowner receives a fixed number of bushels regardless of whether there is a bumper crop or a crop failure. For example, assume the corn price is $4.50 and alternative corn yields of 150, 180 and 210 bushels per acre. At these yields, 60 bushels is the equivalent of 40%, 33% and 29% of corn production, respectively. 60 bushels × $4.50 = $270 rent per acre 60 bushels × $4.50 = $270 rent per acre 60 bushels × $4.50 = $270 rent per acre Reviewed August 2021 Page 2 Fixed Bushel Rent Although a fixed bushel lease is meant to reduce the tenant’s risk, it may actually increase their risk. Crop prices and yields are often not independent of each other. Widespread drought often leads to rising prices while bumper crops often lead to declining prices. Because the lower (higher) yield is offset by a higher (lower) price, the impact of these changes on the tenant’s income is reduced. However, by allowing rent to vary due to changes in prices, but not yields, rent may actually increase (decrease) in years when the tenant’s income remains the same or actually decreases (increases).
