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3.2.5.6 Step 5.6: Determine Cost of Risk Reduction Measures

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An important factor that influences the decision to implement a risk reduction measure is cost. In Chapter 14, cost–benefit analysis is discussed, as a tool for analyzing efficiency of risk reduction measures. In a cost–benefit analysis, the cost of introducing a risk reduction measure is compared with the benefits that can be expected. Because the benefit is a risk reduction (e.g. reduction in injuries and fatalities) that cannot be compared directly with costs, we also need to express the benefits in monetary terms. This is one of the contended aspects of cost–benefit analysis, in particular because of the need for expressing loss of life and human injuries in monetary terms.

Risk Assessment

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