Loss Causation Model

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"Loss Causation Model" History, Theory & Application

"Loss Causation Model" History, Theory & Application
Before a loss occurs (Injury, illness, damage, loss in process), there are series of events that take place with a root cause that begins this series of events. The root cause is called a Lack of Control (Inadequate standards, lack of compliance for preparedness, knowledge and skill training, etc). This leads to a basic cause (or personal factor) such as lack of knowledge, stress, inadequate capabilities. This in turn leads to an immediate cause (substandard conditions and actions) such as operating without authority, working under the influence of controlled substances, inadequate barriers. This then leads to an Incident – a fall, a strike, stress, or being in contact with an unfriendly environment. The incidence leads to the loss. The concept of the Loss Causation Model hence is that when a loss occurs, we need to go back that chain, realize that the root cause is not the incident or the immediate cause, and solve the problem from the root cause in order to prevent the loss from reoccurring. There are numerous accident and loss causation models in existence. The two that will be discussing in this report will be H.W. Heinrich’s Domino Theory and the ILCI Loss Causation Model. Loss causation models are used as models for safety and accident prevention theory. Loss causation models provide a direction of focus for the individual interested in reducing injuries in an organization. Heinrich’s principles date back to 1932 and encourage focusing on near misses instead of injury-related incidents to prevent significant losses from occurring. The International Loss Control Institute developed their own model in 1985, the ILCI Loss Causation model, to provide users a tool to control the vast majority of accidents and loss control problems. The ILCI model encourages focusing on development of standards, the measurement and evaluation of standards to ensure they...
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