April 27, 2010 | Mark Paradies

Do You Have an Extra Billion for Improvement?

How much is in your improvement budget?

Initial estimates from JP Morgan published in the Star-Telegram say:

The Deepwater Horizon oil rig that caught fire and sank in the Gulf of Mexico last week may cost insurers and reinsurers $1.6 billion, according to estimates by JPMorgan Chase & Co.

Of course, that’s what insurance is for. To insure against loss.

Wouldn’t it be better to spend less to prevent loss by being proactive? If the budget for prevention was 10% of the actual cost of the loss, I bet this accident could have been prevented. What company – even in the oil business – is spending $160,000,000 on their improvement program.

Of course, that assumes that the estimate of $1.6 Billion is correct. My guess is the total cost (beyond insurance coverage) will be much more.

Maybe it’s time to consider PROACTIVE improvement rather than just insurance.

Consider attending a 5-Day TapRooT® Advanced Root Cause Analysis Team Leader Course and the TapRooT® Summit to learn more.

Root Cause Analysis
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