Incident Management

405: Conduct an incident cost analysis

As part of incident investigation, OHS professionals must undertake a cost analysis to understand the impact of the incident on the business. The cost analysis should include both short-term and long-term costs, as well as different types of costs, including:

– Impacts to worker health and well-being
– Financial costs
– Reputational costs

In order to act as an effective resource to their organization, an OHS professional should be able to communicate effectively regarding the different types of costs stemming from incidents, and to incorporate incident cost forecasting in the prioritization of risk-control prioritization processes.

Prerequisite

None

References in Other Frameworks

IOSH: TC3

Understand and Remember

– Different types of costs associated with workplace incidents:
– Worker health
– Financial costs such as:
– Reparations, fines, and penalties
– Repair
– Insurance rate changes
– Lost production
– Inventory and product losses
– Reputational or brand damage
– Methods and tools for conducting incident cost analysis

Apply and Analyze

– Conduct an incident cost analysis using existing processes and tools
– Identify short-term and long-term costs
– Identify different types of costs
– Write an incident cost report according with pre-specified procedures

Evaluate and Create

– Write an incident cost analysis in the absence of existing processes
– Communicate cost analysis information to all employee levels, including senior management
– Evaluate incident cost reports processes
– Identify opportunities for improvement
– Identify areas of excellence
– Develop incident cost analysis processes

No results found.

Related Units of Competency

401 Demonstrate
Understanding of the legal implications of incident management
402 Identify
The appropriate principles and actions associated with incident management
406 Conduct
Incident investigations and provide recommendations for corrective action