Robust analysis of cost-effectiveness in formal safety assessment

The paper probes the robustness of the present method for evaluating the cost-effectiveness (CE) of risk control options, which are identified through the International Maritime Organisation Guidelines on Formal Safety Assessment (FSA). We highlight the deficiencies of the current CE method, undermining its lucidity and consistency in application. The proposed approach outlines a mathematical formulation that neatly integrates all aspects of CE measures along with its application based on the Pareto dominance concept. We benchmark our method against CE results found in the FSAs for cargo and passenger ships, demonstrating the ease of application and clarity of interpretation.