Cost-effectiveness of risk management

The three fundamental arguments that may be employed to promote action in the field of risk management concern the legal, humanitarian, and economic aspects (see section 2.2.7). 

For the vast majority of organisations, there will be few or no quanhta-tive data relating to the economic facets, and particularly to the costs associated with accidents. In order to be able to demonstrate cost effectiveness (or cost benefit), there is therefore a need to be able to quantify the cost of all losses associated with accidents. 

An investigation of the costs of occupational accidents for the UK as a whole has considered the costs under two headings resource costs covering lost output, damage to plant, medical treatment and administrative costs, and subjective costs relating to pain and suffering of the victim and his family. 

However figures relating to the national situation are often not perhnent to individual factories and departments. Some figures obtained in March 2005 for the uninsured costs of three t5q es of accident were  

Lost time injury Non-lost time injury Damage 

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