Cost Benefit Analysis
Help achieve cost effective risk management
Risk assessment raises many questions that need careful interpretation, to ensure effective risk mitigation and cost-effective risk management. As an operator, you might rely on independent judgement to help interpret what is an acceptable approach to risk management.
ALARP (as low as reasonably practicable) offers a means of evaluating risk against the necessary effort, time and money needed to control the risk. Calculated risk can be compared to benchmark levels – examples are based on typical UK acceptability criteria.
Selection of countermeasures should be based on sound risk management principles, including the ‘hierarchy of control’. Cost-benefit techniques are employed to determine most effective countermeasure investment. For effective comparison, all impacts and benefits are considered in financial terms and a range of investment criteria can be used such as VPF (Value to prevent fatality). VPF can be used to determine whether the cost of risk reduction is ‘grossly disproportionate’ to the benefit gained.
We can help you to improve decision making by providing a basis for risk comparison of options. With a long history of supporting clients in this area, we tailor our approach to ensure that it is aligned to the specific issues present. This ensures that we are able to provide recommendations that add real value, and ensures risk optimisation is achieved.
Clearly demonstrate compliance with regulations
Provide confidence in the suitability of your risk management measures
Help in identifying a more cost effective ay of reducing risk
Experienced team, working in partnership to add achieve and achieve risk optimisation