Transforming Risk Management Where Risk is Quantified in Dollar Terms as Currency is presented at the Nigeria Vision Zero Launch June 2018

1. Lagos Vision Zero 26 – 28 June 2018
Risk Dollarization®
Transforming Risk Management
Where Risk is Quantified in Dollar
Terms as Currency
Jillian Hamilton, Manage Damage

3. Avoid Catastrophic
Year Damage
Event
Country Event People
Died
$ Impact (US$)
2017 Grenfell United
Kingdom
Building Fire 80 Council Rehousing Cost –
US$311.3M
UK Gov’t – Replace Cladding - $77.5M
14 June 2017 - 15 Feb 2018, RBKC spent £20.9m on
rooms at 53 hotels for former residents of Grenfell
Tower and evacuees from the Lancaster West
estate.
2017 Dreamworld
Theme Park
Australia Ride
Mechanical
Failure
4 Company Valuation of Loss ↓43%
US$691M Ardent Leisure
Share price from 2.67 – 1.52
2013 Rana Plaza Bangladesh Factory Fire
& Collapse
1135 /
3000
$200 / Person - Total = $227K
$65 / mth / pp for 2 yrs - Total = $4680K
US$40M to be gathered by ILO
2010 Deep
Water
Horizon
United
States
Explosion &
Spill
11 Company Total Cost $61.6B (pre-tax)
2002 West Africa
Rubber
Products
Nigeria Fire 100 Nigeria Social Insurance Trust Fund (NSITF)
employers not registered the victims with the fund
nor remitted money deducted.

4. Vision Zero Nigeria
Today is a day for promoting safety & health in the workplace & to honour those who have died from
work-related injury or illness.
2.3 MILLION
PER YEAR DIE AT WORK
313 MILLION
WORKPLACE INJURIES
$2.99 TRILLION
COST OF WORKPLACE
INJURY/ILLNESS WORLDWIDE

5. Vision Zero Nigeria
25
191
AUSTRAL IA (54th - 0.32%)
NIGERIA(7th - 2.57% )
Nigeria v Australia Population 2018

6. Vision Zero Nigeria

7. What drives decision
making for people,
companies and
countries?

9. What Language do you speak?
The Financial Approach to Non-
Financial Risk
Risk Dollarization®

10. Costs of Damage - Relate
$2.99 TRILLION COST OF WORKPLACE INJURY/ILLNESS WW
1.5
1.3
0.1818
0.2837
0.3885
0
0. 2
0. 4
0. 6
0. 8
1
1. 2
1. 4
1. 6
Canada Aus tralia New Zeal and Pakistan Nigieria
Nominal GDP $USA Trillion 2017

11. STATISTICS V DOLLARS

12. DAMAGE COST ASSESSED

13. 4:1 PROOF OF RETURNS
https://www.issa.int/en_GB/-/the-return-on-work-reintegration
RETURN ON INVESTMENT
International Social Security Commission
Confirmed
4:1

14. Return Of Investment
• Improve economic outcomes
• Clear Transparent Accurate
• Marked, Measured & Managed
• Commercially focused people
understand
• Both People and Business Succeed

15. PERCEPTIONS
Left Brain Right Brain
Practical Standpoint:
Description of what you get, why you need it and why no
other way is quite the same
Focus on solution
Needs testimonials of previous success with same process
How much they will save on the product if you buy now
What is the ROI?
Story telling:
A short story, mini plot, climax and resolution.
Focus on outrageous comedy and element of
surprise to make the share memorable
Creates a fold out ad spread focused on
breathtaking imagery and vivid language to
captivate the readers’ attention
Goal is to romanticize the reader into ignoring the
competing content of the publication instead of the
practicality of the product
Sparkling Digital Billboard accentuating luxury or
pleasure from the sale
S o u rc e : s la n t.a v e n u a -ra z o rfis h .c o m

16. RISK DOLLARISATION®
RISK DOLLARISATION® APPROACH OLD APPROACH
Quantitative Qualitative
Hard Science Soft Science
Objective Subjective
Basis of Knowing – Cause and Effect Basis of Knowing – Meaning, Context
Single Reality Multiple Realities - Continually
changing with Individual
Interpretation.
Dollars Counts
Budgets and Business Cases Paragraphs and convincing
statements/requests

17. Create Action

18. Winners

19. Winners

20. Winners

21. NIGERIA COMMITS TODAY
Today is a day for reflection & for learning
about how you can influence safety in a
positive way.
Consider a Financial Approach
The numbers don’t lie & the results are
unfounded!!

22. NIGERIA

23. NIGERIA

24. CONNECT WITH US
www.managedamage.com
https://www.linkedin.com/in/jillianlhamilton/
https://www.facebook.com/Managedamage/
https://www.instagram.com/manage_damage/