ACCIDENT RECORDING AND INVESTIGATION

INCIDENT COST ANALYSIS

COST OF RISK – DOWNGRADING INCIDENT COST ANALYSIS

STANDARD: INCIDENT = ALL NON-TRADING DOWNGRADING INCIDENTS WHICH INCUR DIRECT OR INDIRECT COSTS. THIS WILL INCLUDE MACHINERY BREAKDOWN, WHICH
RESULTS IN A LOSS OF PRODUCTION EXCEEDING ONE HOUR AND WHICH SHOULD BE SUBJECT TO A FOLLOW UP SYSTEMATIC DEFECT ELIMINATION INQUIRY. TO BE
COMPLETED BY THE RISK CONTROL MANAGER IN CONJUNCTION WITH HEADS OF DEPARTMENTS INVOLVED.

INCIDENT REF NO DEPARTMENT

DATE AREA
LABOUR COST NO HOURS RATE COST TOTAL
Overtime
Diversion of skills time
Replacement time
Re-training time
Investigation time
Add. Unproductive labour time
Productive time lost (injury)
Clean up time
Other (specify)
TOTAL COST – ESTIMATED COSTS ARE ACCEPTABLE – ADJUST LATER
EQUIPMENT USED Km HOURS RATE COST TOTAL

TOTAL COST – ESTIMATED COSTS ARE ACCEPTABLE – ADJUST LATER

MATERIALS AND SPARES
SUNDRY DETAILS COST TOTAL
INCLUDING SPOILAGE

TOTAL COST – ESTIMATED COSTS ARE ACCEPTABLE – ADJUST LATER

Overtime

TOTAL COST – ESTIMATED COSTS ARE ACCEPTABLE – ADJUST LATER

SUNDRY DETAILS COST TOTAL
Outside agency / hospital / Dr
Traveling expenses
Product recall
Other - Specify

TOTAL COST – ESTIMATED COSTS ARE ACCEPTABLE – ADJUST LATER

ADD POSSIBLE UNINSURED 3RD PARTY LIABILITY COSTS + EXCESSES
 COST OF RISK – ACCOUNT ANALYSIS

STANDARD: THE OBJECTIVE IS THAT THE ACCOUNTS DEPARTMENT CAPTURES AND CONSOLIDATES NON TRADING COSTS ASSOCIATED WITH RISK –
UNDER ONE ACCOUNT – THE ‘COST OF RISK ACCOUNT’
THE ACCOUNTANT SHOULD USE THIS FORMAT. FIRSTLY TO CONSOLIDATE STANDARD RISK PREVENTION COSTS, WHICH ARE TRADITIONALLY POSTED TO
SUNDRY SUB ACCOUNTS, AND TO BRING ALL THESE COSTS UNDER ONE NON-OPERATING ‘COST OF RISK ACCOUNT’. SECONDLY, TO CONSOLIDATE EACH
‘DOWN GRADING INCIDENT COST ANALYSIS’ TO CAPTURE RECOVERY COST BOTH DIRECT AND INDIRECT. THESE COSTS WILL ALSO BE POSTED TO THE
‘COST OF RISK ACCOUNT’.
THIS FORMAT SHOULD NOT BE CONSIDERED DEFINITIVE AND SHOULD BE EXPANDED TO SUIT NEEDS. THE FORMAT IS THEREFORE A SUGGESTED FORMAT
TO ADOPT.

REF NO DEPARTMENT
DATE AREA

A. Standard operating risk prevention

costs generated or, COSTS INCURRED
B. Downgrading incident recovery costs
as indicated in the analysis.
SUB ACCOUNT PERIL CODE
Here under please insert A or B in this
UNDER CONSIDERATION column opposite the appropriate sub
DIRECT COST INDIRECT COST TOTAL RISK COST
account peril code under consideration.
An input cost code is recommended to
identify the nature of the cost recorded.
Fire
Thef
Machinery breakdown
Motor vehicles
Injuries / Death
Material damage
Legal liability – Products
Legal liability – Other
Admin costs
Assets, movable / immovable
Materials
Other insurance claims compared
to premiums
Other – Describe
TOTALS

SOME RISK PREVENTION COST EXAMPLES: INSURANCE PREMIUMS / PURCHASES SECURITY – FIRE EQUIPMENT / FIRE AND SECURITY
REPAIR, REPLACEMENT, REFILLING OR SERVICING EQUIPMENT / TRAINING / SALARIES AND GENERAL ADMIN RECURRING COSTS.
SOME DOWNGRADING INCIDENT RECOVERY COST EXAMPLES: LABOUR COSTS / EQUIPMENT COSTS / MATERIALS AND SPARES
INCLUDING SPOILAGE / PRODUCTION TIME LOSS COSTS / LOSS OF PROFITS / TRAVELING / PRODUCT RECALL

Prepared Approved by: Element GI4.6-001 Page No: Page 2 of 2 Revision No: 00
by: Reference No: