Write a 4 page essay on the value of a statistical life, and why its usage is important in safety management. Include a discussion of the consequences of failure to apply the VSL to safety...

WRITTEN ASSIGNMENT        3
WRITTEN ASSIGNMENT
Table of contents
Introduction    3
Discussion    3
Value of a Statistical Life    3
Importance of the VSL in Safety Management    3
Consequences of Failing to Apply the VSL in Safety Decisions:    4
Summary    5
Conclusion    6
References    7
Introduction
    A notion known as the Value of a Statistical Life (VSL) is used to put a price on human life. The VSL is frequently employed in economics to assess the possible advantages of plans, initiatives, and rules that affect people's quality of life. To evaluate the cost-effectiveness of safety measures, it is also commonly employed in the field of safety management. In this paper, I'll talk about the importance of statistical life utilisation in safety management and its worth. I'll also draw attention to the negative effects of not considering the VSL while making safety judgements.
Discussion
Value of a Statistical Life
    An economic concept known as the Value of a Statistical Life (VSL) is used to calculate the worth of a human life. The amount of money a community is prepared to spend in order to lower the risk of mortality is often stated in monetary terms. A statistical concept known as the VSL is founded on the idea that each person in a population has a certain value placed on their life. This value may be calculated by looking at how much people are prepared to spend in order to lower their chance of dying. The VSL, for instance, is $1 million if individuals are ready to pay $10 to lower their chance of dying in an automobile accident by 1 in 100,000. (Farber et al.,2021).
Importance of the VSL in Safety Management
    Because it is used to assess the cost-effectiveness of safety measures, the VSL is a crucial idea in safety management. Regulations, programmes, and initiatives that promote safety are intended to lower the likelihood of fatalities and injuries. However, these actions frequently have a price tag, and it is not always evident if the advantages exceed the drawbacks (Nandi et al., 2022). By weighing the costs and advantages of a safety precaution, the VSL may be used to assess if it is cost-effective. Whenever a measure's advantages outweigh its costs, it is said to be cost-effective. The VSL is also employed to rank safety precautions. Generally speaking, safety measures with a greater cost per life saved are given less priority than those with a lower cost per life saved. This is due to the fact that society's resources are finite, making it crucial to distribute them as efficiently as possible. Safety managers may make sure they are using the resources at their disposal as efficiently as possible by using the VSL to prioritise safety actions.
Consequences of Failing to Apply the VSL in Safety Decisions:
    Failure to use the VSL while making safety judgements...