On economic evaluation of systematic safety work at companies

Harms-Ringdahl, L., 1990. On economic evaluation of systematic safety work at companies. Journal of Occupational Accidents, 12: 89–98.

A simple model has been developed for cost-benefit evaluation of safety improving measures at companies. Economic values are estimated for a number of items, which fall in three main categories. These are system investigation, implementation of measures, and the effect on the improved system.

A description of the application is given in four case studies. One study concerned the application of accident investigations. In three studies safety analysis was applied on work places at factories. The economic calculations gave positive economic results in all the cases. In the case with accident investigations a reduced number of accidents gave a good economy. In the other studies the major part of the benefits came from production improvements.

One conclusion is that the model worked practically for estimation of costs and benefits for safety work. However, there are large uncertainties in the estimations, which make it advisable to present both high and low value results. As the economic results were good, calculations of this kind can be valuable in a strategy to motivate companies to apply a more systematic safety work, especially in the design of factories and workplaces.