2. Describe History of the Problem
- Describe the history of previous hazards and system failures.
- A history of past hazards, behaviors, or accidents indicates an increased probability that a future accident may occur. An established trend is a strong indicator of SMS weaknesses. Of course, the lack of a previous similar condition, incident or accident does not mean it won't negatively impact the company in the future: It could be that you've just been lucky so far.
To establish a valid trend, you'll need to analyze data from at least seven points in time. This could be seven days, weeks, months, years. It all depends on the kind of data you are analyzing. For instance, if you are trying to establish a trend related to the number of strains and sprains, depending on how often those injuries occur, you might have to look at seven months or seven years.
- Describe how past similar hazards affected direct (budgeted, insured) accident costs.
- Direct costs of accidents include workers compensation premiums and miscellaneous medical expenses. The employer will pay this (on average) over a number of years in increased workers compensation premiums. It's no different than car insurance: you have an accident, and it's your fault (compensable), your insurance goes up.
- Describe how past similar hazards have affected indirect costs.
- Indirect accident costs are immediate costs that come right out of the corporate pocketbook. Indirect costs include additional training, replacement workers, lost production (closing the plant down), increased supervision, etc.
Knowledge Check Choose the best answer for the question.
7-3. Which type of accident-related costs impact a business in the short-term and are considered an immediate cost?
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