Understanding the Costs of Your Damage
Damage Costs are the costs incurred by a business when they incur a damage due to the loss or harm resulting from injury to person, property, or reputation.
The word “damage” is chosen and used to speak to the commercial/ business/ operational parties of a business whom regularly speak in these terms for stock and sales worldwide.
Damage Costs normally emerge out of areas of business that are deemed to be of Non-Financial Risk; ones that are not normally managed in monetary method or financially reported on, for example, operational risk, compliance risk, conduct risk, IT risk, cyber risk and third-party risk.
As soon as you uncover your business Damage Costs, this almost directly leads to an opportunity for more profit.
The Risk Dollarisation® Philosophy can be used by anyone in an organisation
The Risk Dollarisation® Process of Dollarisation works best for Medium to Large organisations who are currently collecting various sets of data that can be analysed.
Risk Dollarisation® identifies the Non-Financial Risks of Businesses in Financial Terms.Factual, transparent and accurate operating environmentIt supports the market driven theory Costs are appropriately assigned and accounted forMarked, measured and managed risks.
Why Risk Dollarisation®?
We realised that conventional methods of workplace health and safety were ineffective within a business environment from a culture view – we designed way to mark measure and manage risk by measuring it in dollars.
We designed the Financial Approach to Non-Financial Risk namely, Risk Dollarisation®.
Safety professionals have built a discipline on the basis of the moral imperative of minimising the harm to people caused by the workplace; a sound ethical position which motivates significant sectors of the workforce; they use psychology/the creation of safety cultures to drive action.
The Risk Dollarisation® moral imperative is to drive activity of stakeholders in the business financially.
We found that the current safety culture/leadership paradigm doesn’t match the way business leaders think; We can either attempt to convince business leaders to think differently about safety, or we can create a discourse on safety that aligns to the language that business is accustomed to using for planning and decisions.
Different factors motivate different stakeholders;
- Employees care about their own health/wellbeing and maybe others
- CEO/CFO entire focus is the success of the business
If you understand this and realign the approach it will mean safety gets a seat at the table and is spoken in language that is understood.
We are completely simplifying/demystifying safety & making it meaningful/practical.
It’s not magic – it’s simple economics & measurement – marked measured & managed.
How Does Risk Dollarisation® Work?
Using the Risk Dollarisation® which identifies the Non-Financial Risks of Businesses in Financial Terms.
Risk Dollarisation quantifies items of damage or losses in a business that are not normally costed and managed as any other cost would be in a business – it allows commercially focused people to assign dollars to usually Non-Financially measured items of risks.