News By Tag
* Risk Management
* Risk Quantification
* Economic Value
* Risk Reduction
* Risk Assessment
* More Tags...
News By Location
New Economic Valuation Metric for HSE Risk Reduction Announced
Return on Investment of Loss Avoidance (ROIa)™: an innovative valuation methodology that combines health, safety and environmental (HSE) and risk management concepts with economic analyses.
ROIa™ demonstrates financial return of HSE risk reduction expenses in terms of
- A reasonable-case expected loss,
- Maximum expected (or catastrophic)
- The cost of generating new profits needed to recover the cost of an HSE loss.
ROIa™ utilizes existing financial data along with frequency and severity data obtained through HSE risk assessment processes, then benchmarks that exposure information against varying sets of cost data most relevant to client organizations. This produces ROI information for HSE management costs in the context of internally-credible financial values, risk management and revenue/profit generation benchmarks.
“The current trend in HSE is toward a more thorough integration with risk management fuctions or internal audit departments. These are the groups that are charged with implementation of Enterprise Risk Management frameworks, such as COSO,” said Mr. Lawrence Heim, Director at Elm.
“Further, current economic conditions dictate that companies spend their money wisely,” Heim continued. “ROIa™, by blending client-specific financial and HSE loss data, external professional experience and tradititional risk management concepts, demonstrates the economic value of HSE risk reduction expenses and where improvements may be made.”
Elm recently presented on ROIa™ at the April 2009 Spring meeting of The Auditing Roundtable, the national trade association of environmental, health and safety auditing professionals. This presentation can be viewed at http://elmconsultinggroup.wordpress.com/
For additional information on The Elm Consulting Group International, services provided or ROIa™ contact Lawrence Heim.
About The Elm Consulting Group International, LLC: Founded in 2002, The Elm Consulting Group International, LLC is a specialized health, safety and environmental (HSE) risk management consultancy with offices in Connecticut, California, Georgia and Texas. Elm supports clients in over 60 countries, assisting with the development and deployment of effective HSE management and compliance programs. ELM has an established network of affiliations across the globe, including consulting resources in over 22 countries on six continents.
Contact: Lawrence Heim, Director, The Elm Consulting Group International, LLC, 678-200-5220. www.elmgroup.com
# # #
THE ELM CONSULTING GROUP INTERNATIONAL LLC provides health, safety and environmental (HSE) risk management, compliance and sustainability consulting support across the US and globe, including 22 countries on six continents.