CHAPTER ONE

INTRODUCTION

1.8      BACKGROUND OF THE STUDY

Risk is integral to everyday life. Once we have said that risk is always at the center of our life. This means that for every human endeavour, there is risk as a result of our difference provision according to David (2001), risk exist where the future is unknown. It represents both desirable event when one intentionally initiates certain thing in order to better as socio-economic wellbeing. “Because of these desirable and undesirable events. It is a desirable event when one intentionally initiates certain things in order to better his socio economic wellbeing. Because of these desirable and undesirable events, an organization will want to transfer their risk to an insurance company, which thereby brings about risk survey.

According to David (1989), the prince object of a risk survey is to provide the underwriter with as complete as positive of risk being offered as possible, to enable  him decide whether the risk was acceptable and how it compared with the same kind as the basis for deciding premium and other terms.

In the present day, the survey is still closely concerned with provision of underwriting information and in many situations the information disclosed by the complete proposal form, will need to be supplemented by a surveyors reports before the picture is completed. However, the surveyors is now more closely concerned with audient previous, surveying represents one aspect of the wider subject of risk control. Moreover, practice varies among individual insurers and there are no established criteria for surveying manufacturing firms. It may safely be stated that risks of unusual character or with special features will normally be surveyed in that firm. A safety or risk audit will be conduct.

A safety audit is a critical examination of an individual operation in it, entirely to identify potential hazard on level of risk. Audits are often undertaken by multi-disciplinary terms. Individual member should have a good knowledge of legal requirements, an understanding of reasonable practice in the industry and above all the ability to communicate with all levels of personnel or departments within the organizational. In many companies, this expertise is not readily available and so audits tend to be undertaken by external specialist such as consulting engineers acting independently or employed by insurance companies. In manufacturing firms like Emenite Limited, risk that presents a serious injury/hazard is those where there is substantial involvement machinery. Reports from the health and safety executive in Emenite Limited. However, show that save 80% of accidents are not caused by machinery buy by such simple things as falls lifting heavy weights or defectives hand tools.

Risks survey will thereby go a long/greater way in boosting productivity in manufacturing firm via review of risk and it will also help to facilities improvement in the work force of the company like Emenite Limited.