R2 - Evaluation of Physical Threats

R2 requires entities to identify and evaluate physical threats to their bulk-electric system assets, analyzing likelihood and potential impact of sabotage, terrorism, natural hazards and other hostile actions. The assessment must consider location, asset criticality, existing safeguards and historical incidents, producing a documented risk profile that informs mitigation planning. This ensures a systematic, risk-based approach to protecting physical infrastructure under NERC CIP-014.