of the program. The cost effects must also be evaluated, measured as the effect on the real gross domestic product per person (with refinements that could include correction for purchasing power parity for international comparisons). The net benefit of a program is measured, according to the SCCR, by the resultant increases in real gross domestic product per capita and life expectancy, weighted by K. The Life Quality Index may be thought of as a refinement of monetary measures commonly used in cost-benefit analysis. Net Benefit Criterion for Managing Risk The objective is to maximize life expectancy subject to society’s capacity to commit resources in light of existing or future constraints. Reducing risk of death and disease translates into longer healthful lives. The length of life extension in good health for a population can be reliably measured as the effect on the gain in life expectancy (dE). Resources and monies (-dG) are required to achieve the gains, or increases, in life expectancy. If the resources are wisely spent, i.e., below the limit of benefit SCCR, then the gains in life expectancy will be sufficiently large that there is a net increase in the Life Quality Index (LQI). In contrast, if inordinate sums are spent on activities that do not save lives or result in only meagre life extension then there is a net decrease in the LQI. Life Quality Index as a Tool for Managing Risk Through numerous case studies and worked examples, it has been shown how the Life Quality Index can be used to assist decision-makers in evaluating the effectiveness of regulations and activities aimed at reducing risk to life, health and the environment. The LQI is a versatile tool that can be used to assess a wide range of risk management problems. The examples of application of LQI include: the effectiveness of standards and regulations for health and safety; harmonization of structural safety standards and design goals; assessment of air pollution standards; efficiency of life-saving interventions and estimates of the societal willingness (or capacity) to commit resources for safety. The LQI is used in the calibration of standards by the Joint Committee on Structural Safety (see Rackwitz(2008)) and has thus found its way into currently valid standards (SIA 269 and ISO 2394). Development of the Life Quality Index The concept of the Life Quality Index was first initiated at the Institute for Risk Research, University of Waterloo, Waterloo,