Conducting an Accident Investigation
Course 102
Safety Certified Supervisor Series

MODULE 6: DEVELOPING RECOMMENDATIONS

A simple cost-benefit analysis

A simple cost-benefit analysis assumes that there is a reasonable expectation that a disabling injury is likely in the foreseeable future (five years) when employees are exposed (place themselves within a danger zone) to a workplace hazard. The object is to contrast the relatively high cost/low benefit if the hazard is not eliminated, with the low cost/high benefit if the hazard is eliminated.

The analysis answers the following questions:

• What are the potential costs to the company if the hazard is not eliminated?
• What are the potential costs to the company if the hazard is eliminated?
• How soon will the corrective action pay for itself?
• What is our return on investment (ROI) if corrective actions are taken?

Example: If, during a safety inspection, you notice that an elevated platform area in a warehouse does not have a proper guardrail. You note that several workers work on the platform each day, and a well-used walkway passes directly under the platform. To construct a cost-benefit analysis for this situation you would answer the above questions as follows in the next few pages.