Implement the Optimal Approach to Deal with Asset Risk

Decide and Implement the Optimal Approach to Deal with Asset Risk 

Cost considerations can be a key factor in decisions to implement countermeasures. Cost-benefit analysis is a cost analysis methodology used to justify safety expenditure. The cost-benefit analysis is a comparative assessment of the benefits from your safety measure and the costs to perform it, in relation to the financial impact resulting from potential loss to the asset. The safety manager should consider costs for all phases of the safety project. Costs may be one-time capital costs or recurring costs. The determining criterion in a cost-benefit analysis is that the safety benefit exceeds the cost. The amount that the benefit exceeds the cost is based on the safety manager s determination in consultation with organizational leadership. 

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Decide and implement the optimal approach to deal with asset risk. 

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