The benefit of a voluntary reporting system (VRS) is fairly obvious: If hazards and errors are reported, then risk controls can be put into place to mitigate future occurrences. This in turn creates a safer working environment, reduced exposure to litigation and a more profitable organization. A VRS is an important element of a safety management system (SMS). However, since an SMS currently is not mandatory for all operators, some organizations have not espoused the benefits of a VRS.
The Heinrich Ratio states that, for every fatal accident, there will be three to five nonfatal accidents and 10 to15 incidents; but there will also be hundreds of unreported occurrences. Unreported occurrences are problematic because no risk controls can be deployed if nobody knows these occurrences exist.
