What does a major accident cost in the US?
I was reading a Houston Chronicle article about a BP civil trial. It said:
“BP has spent more than $1.6 billion settling 2,425 claims, including all involving deaths. The remaining claims involve injuries or property damage.”
Is that all the costs of that accident? No way.
Lost production …. Billions.
Bad PR … Billions.
Management turmoil … Billions.
Hit to the stock price … Billions.
Hit to employee morale … not billions but significant.
So if you are saving pennies and the results may be a major accident, you are making a fool’s bargain.
Penny wise, Pound foolish
Investing in advanced root cause analysis? A wise use of resources that produces returns for years.
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