Chapter 6: Risk Control

Accident causation theories Domino theory Energy release theory Other loss control techniques Cost benefit analysis

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Learning Objective
Explain the differences in philosophy between the domino theory and the energy release theory of accident causation Identify the tools of risk control Derive the optimal amount spent on loss control using information of costs and benefits

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Theory in Risk control (human engineering)

Domino Theory Developer Cause Point of focus Party at fault Solution H.W Heinreich (Old) Accident is a factor in sequence that lead to loss Accident Human factor Attempts to control the frequency of accident Energy Release Theory William Haddon Jr. (New) Accident is due to energy release that is out of control People attitude Physical engineering Pre-loss reduction by: Controlling the amount of energy Changing the structure to reduce impact Safety engineering

Modify human behavior

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Domino Theory
Final occurrence (A personal injury/ Property damage) Peril as a result of personal/mechanical hazard (accident) Hazards exist only due to personal shortcomings Personal shortcomings are resulted from the environment Environment where the individual is born
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 ALOR SETAR: Four members of a family were killed and one seriously injured after the car they were in was involved in a collision with a lorry nearby Kampung Permatang Limau, Pokok Sena near here Thursday. In the 3pm incident, the lorry laden with padi was believed to have skidded into the path of the family's Perodua Viva, which heading to Kebun 500 from Pendang. The lorry was driven by a 19-year old man.

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Energy Release Theory (Theory of accident causation)

Transfer of energy

Cause damage to physical structure (accident)

Personal injury or property damage

Normal condition

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Strategies to interrupt the chain of accident-cause events:

control and prevention of buildup of energy that is inherently injurious;

creation of an environment that is not conducive to injurious buildup of energy; and production of counteractive measures to injurious buildup of energy.

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Cost Benefit Analysis

Software Example Flood Cost Benefit Analysis

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Benefit Analysis
Potential Benets Avoided damage to property Avoided loss of household possessions Avoided injury and illness Methods to quantify benets Value of damaged property Compare damage to goods with and without retrotted buildings Medical expenses Loss in wages for time spent out of work

Avoided clean-up

Estimate the cost of labor and material for clean-up

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Cost Analysis
Design of measure Implementation and capital cost Resettlement costs where large land use changes are involved Maintenance including the setting up of systems and institutions to handle maintenance Cost of secondary measures, e.g. meteorological forecasts Restoration or rehabilitation of surrounding areas
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