Hong Kong continues to be called “Gourmet’s Paradise” for a long period. Having said that, the volume of accidents in catering topped all sectors in the past few years in Hong Kong. Accidents are unwanted events due to their unpleasant and damaging consequences to company image, worker’s morale, and injury. Accident costs are usually split into direct costs and indirect costs. Forms of direct costs are occupier’s liability premium, worker’s compensation, and legal representation costs. Indirect costs are hidden costs that are hard to approximate and quantify. Nonetheless, they should be regarded as financial items in a company since it may take the company a huge amount of compensation even in occurrence of one single accident…
In this study an organization based Accident Cost Estimation Model (ACEM) was created for estimating, evaluating and forecasting accident costs in catering industry. The model consists of 5 distinct modules viz. safety databank, education, accident cost estimation, accident cost prediction, and accident cost analysis. A strategy for estimating indirect accident costs is shown in the model. Direct costs are estimated according to historic data and the related regulation of worker’s compensation. For reducing the chances of miss count and over count, indirect costs are split into the 4 categories of people, materials, properties, and work environment. The model is also capable to provide prediction of accident costs based on the data validity in the estimation module and government statistics. In the data analysis module, the accident cost ratio, direct accident costs, indirect accident costs, forecasting of accident costs and specific safety and health statistics for any selected period can be shown. It is shown that the comprehensive and systematic accident costs estimation model functions as a powerful management device for a catering company in estimating, predicting and analyzing accident costs and associated statistics…
Source: City University of Hong Kong
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