What formula is used to calculate the Incident Rate in risk management?

The formula used to calculate the Incident Rate in risk management is determined by assessing the number of lost time injuries in relation to the total number of man hours worked. This specific approach provides a standardized way to measure the frequency of incidents in the workplace, allowing for effective comparisons across different organizations and industries.

Using the formula that includes the number of lost time injuries multiplied by 200,000 and divided by the man hours of exposure captures the essence of workplace safety metrics. The factor of 200,000 is derived from the assumption that a standard workforce consists of 100 employees working for approximately 40 hours a week, for 50 weeks a year. Thus, this formula translates the number of injuries into an incident rate per 100 full-time employees, providing clarity on how often these incidents occur in relation to the labor force exposure.

The other options, while related to safety metrics, do not accurately reflect the standard formula for calculating the Incident Rate. They focus on different aspects of workplace injuries or use varying denominators that would not yield a comparable metric for incident frequency like the correct formula does.