Cost Benefit Analysis Model (CBAM)
Cost Benefit Analysis Model (CBAM) is available to help member Nations calculate the benefits of introducing Insensitive Munitions (IM) into their munitions inventory. It is intended to assist the decision-making process by informing on the costs and benefits of introducing Insensitive Munitions over the munition lifecycle.
CBAM is used to compare costs associated with introducing IM versus non-IM versions of the same munition. The tool analyses direct costs, such as development and procurement related costs, as well as potential ones, those associated with accidents or unplanned events. The model employs a Monte Carlo simulation to help assess data uncertainty and results are displayed as graphical representations of the most likely outcome.
Other potential uses for CBAM include:
- Determining life cycle costs of weapon systems (and the life cycle cost comparison between different technologies)
- Risk analysis
- Threat hazard assessment (using the life cycle tree capabilities)
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