Cutting cost at what cost?

Recently, a low cost airline has been grounded in Australia allegedly for safety violations. In the chemical industry, too, cutting cost and maintaining competitiveness is the order of the day. But how can you cut cost without compromising process safety? Many organizations have institutionalized risk based approaches towards cost cutting initiatives. But I find that competency of the personnel using such approaches is key to its success. Top management oversight of such risk based approaches can be effective only of someone at the top understands process safety and the implications of a cost cutting change or modification . I often observe some cost cutting changes slipping through such risk based approaches as they were wrongly evaluated by the person doing the evaluation. Ensure you have robust risk management systems and more so, that a person at the top management level is providing management oversight of the whole process. This person must be competent in process safety and risk based approaches. You cannot compromise on this. Act before it is too late. At least the aviation industry has someone external to it to oversee its safety. But in the Chemical Industry, organisations must watch out for this.