1. Factor # 6 Cost of Non-Compliance
Risk Tolerance
Factor # 6 Cost of Non-Compliance
Risk tolerance can be reduced when the cost of non-compliance to a standard is increased. The reverse is also a factor ... if the cost of compliance is high ($$ or effort) more risk will be accepted.
Increase the cost of non-compliance on critical tasks:
- Be selective and only apply this where the standard can always be applied.
Decrease the cost of compliance by:
- Removing barriers (cost or effort) that prevent conformance to standard
Increase the reward for compliance
- Incentives can be used as a positive motivator for compliance.
Exercise and Discussion
Are there standards we have in our work group where the risk of injury warrants a high cost (penalty) for non-compliance? _________________________________________________________________________ _________________________________________________________________________
Are there standards in our work group that are difficult to conform to? _________________________________________________________________________________________________________________________________________________
What are the barriers (costs, effort,) that make conformance difficult ? __________________________________________________________________________________________________________________________________________________
Identify a specific action that you will take to remove a barrier that has made compliance to a standard difficult. __________________________________________________________________________________________________________________________________________________
Is there a specific example from your work place (or off the job) where an increased cost of non-compliance has been effective in reducing the acceptance of risk? __________________________________________________________________________________________________________________________________________________
Are there other costs to you personal for non-compliance? _________________________________________________________________________