Elm has developed an innovative valuation methodology that leverages EHS and risk management concepts with economic analyses. Our Return on Investment of Loss Avoidance (ROIa)© demonstrates financial return of EHS risk reduction investments in terms of both reasonable anticipated loss and the cost of generating new profits needed to recover associated profits. ROIa utilizes existing financial data along with frequency and severity data obtained through EHS risk assessment processes, then benchmarks that exposure information against varying sets of cost data that are most relevant to client organizations. This produces ROI information for EHS management costs in the context of internally-credible values, risk management and revenue/profit generation benchmarks.
See our April 2009 presentation on ROIa at http://www.slideshare.net/lmheim/roia-presentation