14-12-2012, 05:54 PM
EFFECTS OF SURVEY IN RISK MANAGEMENT IN CORPORATE ORGANIZATIONS; MOSTLY A MANUFACTURING FIRM
EFFECTS OF SURVEY IN RISK.doc (Size: 41 KB / Downloads: 24)
ABSTRACT
It is always said that a problem identified is half solved. Any corporate organization needs to engage in risk survey before the commencement of the process and also during the currency of the process. It has been discovered that most of the catastrophic losses that occur to organizations are due to improper and inadequate risk survey, Risk survey and monitoring will review extra information of the problems that are likely to develop in the organization and will be nibed at the burd.
From the above, recommendations was made that organizations should take risk survey serious, that organizations should make provisions for risk survey from time to time.
That fund should be set aside for contract and efficient risk survey, that they should be handled by expert hands.
KEYWORDS.
Machine, guarding, safely, audit, premises, organizations, risks survey, and catastrophic losses.
INTRODUCTION
Risk is inherent in all our activities. No organization can do without risks. The level of risk exposure depends on the level of business activities. The organization engages in that surveying the risk exposed to any type of profession has to be looked into before commencement. After the commencement effective and efficient risk survey should be done.
It is through the risk survey that they can discover the likely problems that can occur. Even some machine/ plants given a bad sound. The experiences of the operators and their efficiency will be done by constant risk survey.
This is because risk is inherent in all our activities and we cannot do without risk. Because of this, risk survey is very necessary just as gas or engine oil is to plants.
MEANING OF RISK.
Mordi (1987), risk is often thought of in terms of chance (or probability) of loss. The probability of a particular outcome can be defined as the proportion of times that such an outcome is observed to occur in an infinitely large number of independent events. Measures of probability thus range from 0 to 1 with both ends of the scale representing certain outcomes; a zero scale probability means that the particular outcome is certain not to occur, whereas a
probability of 1 indicates that each event will produce that result. Therefore as the probability of an outcome approaches either end of the scale the degree of uncertainty as to its occurrence diminishes.
Thus risk can be thought as the degree of variation in the possible outcomes from an uncertain event, or as the variation in actual from expected outcomes.
MEANING OF RISK SURVEY.
Originally the prime object of survey was to provide the underwriter with as complete a picture of the risk being offered as possible to enable him to decide whether the risk was acceptable, how it compared with others of the same kind and as the basis for deciding the premium and other terms (David: 1989).
FACTORS TO BE CONSIDERED IN RISK SURVEY.
The factors to be considered in risk survey includes the followings:
(1) Business
- This is one of the factors to be considered in risk survey. Although the proposal will have disclosed the nature of the business in general terms, the surveyor will be able to describe precisely the nature of the activities carried on including products manufactured or handled and how they are made or processed. In a tour of the premises, the following factors should receive attention.
(2) Machine guarding
- The standard of machine guarding in S.14 of the factories Act is quite simple. It is that dangerous parts of machinery must be guarded. It is not possible to lay down specific rules for guards; these are often individually made for specific machines and functions. The sole purpose of a guard is to keep the machine operator away from a danger point. It is far better if possible to remove any danger point. Any portion of a machine which fulfils a grinding or cutting function should be guarded as should in-running nips and crushing points, such as rollers or gear wheels.
(3) Chemicals, Fumes and Dust
- If there is a risk of any industrial disease it should be ensured that adequate protective clothing, boots, helmets, gloves, eye protection, hearing protection or other safeguard is supplied and used. The type of protection required will depend on the disease.
Where there is a risk of pneumoconiosis, extraction plant may have to be fitted, and because the dusts involved are so fine any masks used by employees should be those recommended by the Health and Safety Executive. Prevention of dermatitis requires adequate washing facilities, protective clothing and the provision of barrier creams. All personal protections of these types must be immediately available to the employee and not merely issued on request.
Generally speaking the best method of disease prevention in all industries is to remove the source of the hazard, either by altering the process or using a less dangerous substance.
(4) Premises
In this, one have to consider the number, age, construction and suitability.
(5) Management Structure and Workforce:
- Number of staff and type, for example clerical, production, male or female, young persons, disabled or foreign standard of supervision.
- Wage roll: A detailed breakdown is required of the company personnel, particular attention being paid to the areas where the various categories of workers are located. Surveys have revealed such surprising situations as a man with an epileptic condition working on hazardous machinery and a woman unable to speak a word of English being responsible for labeling medicines.
(6) Safety organization and statement of safety policy
– safety officer, committee, representatives, attitude towards safety, training. The relationship between the safety organization and the line managers responsible for the main hazards is particularly important.
(7) Incident / Claims History / Official Inspections
Inspections of the accident register, which must be kept to comply with the factories Act will often reveal a pattern of accidents. Before undertaking the survey, the surveyor will have considered the claims history and he will take particular interest in the action taken to improve the position. Official inspectors report may also give an indication of the physical and moral hazards and these should be used as information sources.
(8) Electrical safety
All electric wiring should be in good condition and properly maintained. If there is extensive use of portable or hand tools these should be connected to low voltage supplies. Power lines should be clearly marked as such and work should not be carried out close to them until the current has been cut off.