Calculating Cost
Contents
Calculating Cost of Consequence
RisskView analyse the financial consequences by estimating the severity and impact on the business and the health and safety aspect. RiskView will calculate the probable loss based on the data within corresponding fields.
To display the following form, you would need to navigate to a Consequence node and click on 
.
The following table describes the labels in this screen.
Label |
Description |
Fatalities |
The number of a fatality. |
Permanent Injuries |
The number of a permanent injury. |
Serious Injuries |
The number of a serious injury. |
Minor Injuries |
The number of a minor injury. |
Damage |
The financial impact of damages to properties, quantified in term of $,000. |
Loss of Income |
The financial loss of income, quantified in term of $,000. |
Restoration |
The financial cost of restoration to its previous state, quantified in term of $,000. |
Total |
Total financial cost of each sections (Health & Safety, Business and Overall). |
Calculating Control Cost
RiskView, we can also further analyse the cost benefits of the controls used in the study. By defining the cost details in RiskView, it will generate a summary on how cost efficient that particular control is and operators/users can then decide whether to further utilise that control in other scenario or to seek for alternate cost benefit solutions.
The following table describes the labels in this screen.
Label |
Description |
Implementation Cost |
The cost of implementing the control, quantified in term of $,000. |
Operation & Maintenance Cost |
The operational and maintenance cost of the control, quantified in term of $,000 per annum. |
Expected time in Operation |
The expected life of the control. |
Present Value |
The present value of the control. |
Calculating Benefits
Once each section is completed the results summary of the benefits are shown on the Risk node.
The following table describes the labels in this screen.
Label |
Description |
Total Health and Safety Consequence Cost |
Total financial impact on health and safety. |
Total Business Consequence Cost |
Total financial impact on the business. |
Total Consequence Cost |
Total financial cost of all consequence. |
Inherent Risk Cost |
Initial financial impact of the Risk, ignoring the effect of all control. |
Current Risk Cost |
Financial impact of the Risk, taking into account the effect of control which are in service. |
Proposed Risk Cost |
Financial impact of the Risk, taking into account the effect of control which are proposed and in service. |
Risk Cost Benefit |
Financial benefit of implementing a proposed control. |
Current Control Cost |
Total cost of control which are in service. |
Proposed Control Cost |
Total cost of control which are proposed and in service. |
Present Value Control Cost |
Total present value of controls. |
Disproportion Factor |
Displays the disproportion factor for the current risk. |
Acceptable Disproportion Factor |
Displays the acceptable disproportion factor for the current risk. (If Acceptable Disproportion Factor > Disproportion Factor then the installation of controls will be justified) |
Costing Assumptions |
Assumptions made when conducting a cost benefit analysis. |
Click here to see an example of the application of Cost Benefit Analysis in RiskView.