Diligence Risk Management - Cost of Risk

Risk Management solutions should be economic. The cost of implementing the appropriate measures, e.g. Health & Safety compliance, should outweigh the consequences of not taking action.

The true cost of risk is very much like an iceberg with the potential cost of non-compliance dwarfing the cost of managing the risk.

Case Study

Last year the financial cost to a Company involved in a serious Health & Safety investigation was £20,000 in fines. In addition the three Company Directors had legal defence costs totalling in excess of £900,000. The loss of business reputation is unquantifiable – not to mention loss of production time.

Compare this loss to the cost of implementing a robust system of managing safety, which would have helped to prevent the accident and defended the Company in court. The benefits are obvious.