Chapter $4\mathrm{.}7$ Tools and Process for How to Prioritize Recommendations and Chapter $6\mathrm{.}2$: The Business Case for a Risk Management Program

Case Study: Training on the Near Miss Reporting Program:

A company wants to train their employees to improve their "near miss reporting program". The training program will cost $$20,000$ one$-$time $($in the first year$)$ to develop, and will require an on$-$going cost of $1$ hour training per year of employee time for $50$ employees at $$100$ per hour, in the first year and in each year thereafter. The cost to implement the "near miss reporting program" is negligible.

Serious injury incidents currently cost the company $$500,000$ per year in medical costs and lost$-$time costs. The "near miss reporting program" is expected to reduce the costs of serious injuries $($i$.$e$.$ a savings$)$ by $50\%$ in the first year.

What is the spending on the training program in the first year? $ Answer $1$ Question $24$

What is the spending on the training program in the second year? $ Answer $2$ Question $24$

What is the potential reduction in injury costs in the first year? $ Answer $3$ Question $24$

In the first year, what is the savings$-$to$-$cost ratio? "Answer $4$ Question $24$

to $1"$

NOTE: A savings$-$to$-$cost ratio of more than $2$ to $1$ is considered highly beneficial i$.$e$.$ great improvements in performance for low cost.

$($An exact value is required; enter numerals only; not commas, no decimal points, no dollar signs; $2$ marks for each correct response, $0$ marks for incorrect response or no response.$)$