Some of the most asked questions about risk management are “how do we know whether we save money by controlling and mitigating our risks?” and “does adding more barriers still add significant value to our risk reduction?”
The bowtie cost-benefit analysis automatically calculates how much money you are expected to save by implementing a barrier. The calculation is based on initial threat frequencies, the probability of barrier failures on demand (PFD’s) and incident (consequence) costs per occurrence.
When barriers are added or values (e.g. initial frequencies) are changed, all outcomes will be recalculated and updated automatically. This creates new insights, e.g.: it becomes clear that certain threats need more attention, or some earlier implemented barriers can suddenly become not profitable anymore.
Additional interesting variables
- Barrier cost reduction
- Inherent expected incident costs (without barriers)
- Residual expected incident costs (including barriers)
- % risk reduction per threat
- % influence barriers per threat line
Possible future extension variables
- Barrier costs (design / implementation / maintenance / re-activation)
- Future calculation (in line with LOPA plugin)
Extension of the LOPA plugin functionality
The Barrier Benefit Analysis is an extension of the LOPA plugin functionality. The only additional key/variable that needs to be filled in is “single incident cost”. Please find more info about the LOPA plugin: here.
We need feedback!
At the time of writing, the Barrier Benefit Analysis is created as a ‘test version’ in BowTieXL. In the near future we will decide what to do with this functionality: make it an extension of the LOPA plugin, make it a dedicated cost-benefit plugin, or keeping the functionality in BowTieXL. Please let us know if you would like to test the Barrier Benefit Analysis, or when you would like to brainstorm about the calculation model.