Saturday, 8 April 2017

WHS professionals need to know when and how to use Cost-Benefit Analysis




Cost-Benefit Analysis - a simple, quantitative way of formally deciding whether to go ahead with an initiative. 



A cost-benefit analysis (CBA) subtracts the expected negative results of a project from the positives to help you decide whether it’s worth pursuing. The net result of a CBA is usually a dollar figure, so you must be able to assign a monetary value to every anticipated benefit and cost included in the analysis



A cost-benefit analysis helps you compare potential projects to see which would be the most beneficial to your business.

There are many reasons why organisations invest in health & safety initiatives and, up to a certain point, it’s simply about being a responsible business.


CBA is deemed to be useful to support a health and safety investment decision.

Having said that, CBA is an extremely useful tool for WHS professionals to use when circumstances dictate. It is also evident that as health & safety issue matures, CBA will become more common in our working lives.



For more information, refer to http://personal.lse.ac.uk/sternn/040NHS.pdf

Our next blog on this subject will look at advantages and limitations of Cost benefit analysis.






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