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Chapter 6: Risk Control 

• Accident causation theories

• Domino theory

•

Energy release theory• Other loss control techniques

• Cost benefit analysis

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Learning Objective

• Explain the differences in philosophy between

the domino theory and the energy release

theory of accident causation

• Identify the tools of risk control

• Derive the optimal amount spent on loss

control using information of costs and benefits

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Theory in Risk control

(human engineering)Domino Theory Energy Release Theory

Developer H.W Heinreich William Haddon Jr.

(Old) (New)

Cause Accident is a factor in

sequence that lead to loss

Accident is due to energy

release that is out of controlPoint of focus Accident People attitude

Party at fault Human factor Physical engineering

Solution Attempts to control the

frequency of accident

Pre-loss reduction by:

• Controlling the amount of

energy• Changing the structure to

reduce impact

Modify human behavior Safety engineering

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Domino Theory

• Final occurrence (A personal injury/ Propertydamage)

• Peril as a result of personal/mechanical hazard

(accident)• Hazards exist only due to personal

shortcomings

•Personal shortcomings are resulted from theenvironment

• Environment where the individual is born

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• ALOR SETAR: Four membersof a family were killed andone seriously injured after

the car they were in wasinvolved in a collision with alorry nearby KampungPermatang Limau, PokokSena near here Thursday. Inthe 3pm incident, the lorry

laden with padi wasbelieved to have skiddedinto the path of the family'sPerodua Viva, whichheading to Kebun 500 from

Pendang.• The lorry was driven by a

19-year old man.

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Energy Release Theory

(Theory of accident causation) 

Normalcondition

Transfer ofenergy

Causedamage tophysicalstructure

(accident)

Personalinjury orpropertydamage

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Strategies to interrupt the chain of

accident-cause events:

control and prevention of buildup of energy that isinherently injurious;

creation of an environment that is not conducive toinjurious buildup of energy; and

production of counteractive measures to injuriousbuildup of energy.

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Cost Benefit Analysis

• Software Example 

• Flood Cost Benefit Analysis 

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Benefit Analysis

Potential Benefits  Methods to quantify benefits 

Avoided damage to property Value of damaged property

Avoided loss of household possessions Compare damage to goods with and

without retrofitted buildings 

Avoided injury and illness Medical expenses

Loss in wages for time spent out of work

Avoided clean-up Estimate the cost of labor and material for

clean-up

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Cost Analysis

• Design of measure

• Implementation and capital cost

• Resettlement costs where large land use changes

are involved• Maintenance including the setting up of systems

and institutions to handle maintenance

•

Cost of secondary measures, e.g. meteorologicalforecasts – Restoration or rehabilitation ofsurrounding areas

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