Dec 2001 – Paper 2 Question 2

Using the example of a proposed new regulatory duty to investigate accidents, dangerous
occurrences and diseases at work, describe the factors to be taken into account in a full cost
benefit analysis, clearly identifying the difficulties that might be encountered in carrying out
such an analysis in this case. (20)

Regulators are under an obligation to undertake a regulatory impact assessment under

proposed legislation

Costs
 Which incidents (e.g. RIDDOR-reportable, lost-time, all)
 What level of investigation is required for particular incidents (severity,
complexity)
 Who needs to be involved (levels of expertise)
 Actual cost (time involved, interviewing witnesses, assessing proposed
remedial actions etc) based on current practice dependent on size of
organisation, and initially higher in organisations with no investigation
procedures in place
 Cost of implementing remedial measures
Benefits
 Better investigation will improve accident rates
 Improvement will depend on thoroughness, efficacy of remedial measures identified
etc

Cost-benefit analysis
 Compared in same units e.g. monetary
 Some easier to define than others