Risk Assessment Assignment Using Lund's Gulch Streamkeeper Data                                                                                                                           

Risk is loosely defned as the probability that an accident or incident will occur.  The amount of risk you deem acceptable will do much to define the extent of your injury prevention efforts.  Risk related to safety and health is often a judgment call.  But, even a judgment call can be quantified if you develop criteria and place value upon it.1                                                                                                                          

For this assignment, you will utilize the simplified version of W. Fine's mathematical model of risk assessment.  We will be using the data from the Lund's Gulch Streamkeeper website to evaluate the following hypothetical scenario:                                                                                                                               

It has been determined that your company is the source of decontamination on Lund's Gulch Stream.  You must decide if your company will spend the money to clean up the contamination or not.                                                                                                                                 

You must include the following components in your paper:                                                                                                                                

1.         Quantitative Analysis using W. Fine's model of risk.                                                                                                                  

Risk Assessment Factor = Consequence x Contamination Level x Probability                                                                                                                           

            A.        Determine the Consequence Value                                                                                                       

            B.         Determine the Contamination Value                                                                                                      

            C.        Determine the Probability Value                                                                                                           

2.         Financial Analysis using W. Fine's model of risk.                                                                                                                       

Justification Factor = Amount to Clean up x Cost to clean up                                                                                                                            

            A.        Amount of clean up needed                                                                                                      

            B.         Cost of clean up                                                                                                          

3.         Punative Damages based on the EPA & OSHA websites.                                                                                                                    

            A.        What is the likely amount of fines?                                                                                                        

            B.         Based on similar cases, what might be the cost of additional litigation.                                                                                                    

Pick a sample company and base your final assessment on their last year's financial statement.  Write a proposal to the company.  Include the following:                                                                                                                                   

1.         What is your recomendation?  Should the company spend the money to clean up the stream?  Why or why not.                                                                                                            

2.         What will the financial burden be to the company?                                                                                                                    

3.         How might you determine the financial impact of the company's reputation in the community?  Is it possible to use a similar quantitative method as W. Fine's to assign a value to the companies reputation to help your case?                                                                                                                       

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