The Effect Of Risk Survey In A Manufacturing Firm (A Case Study Of Emenite Plc)

The Effect Of Risk Survey In A Manufacturing Firm (A Case Study Of Emenite Plc)
Abstract
The effect of risk survey in a manufacturing firm (a case of emenite Plc). Is over emphasized. Risk is the center of human activities and a manufacturing firm like Emenite will need the activities of risk management to survey. So it is only when there is adequate risk survey that the risk manager will be able to identify various risk exposure. Using organizational charts, Hazard and operational studies, check list and so on. When this happens, they will evaluate the identified risk so as to recommend appropriate risk management principle for risk handling.
The chapter one of this project started with introduction historical background, statement of problem, purposes of study, significance of study. In chapter two it looked into the literature review of past materials concerning this topic. Chapter three is about the source of data, population, sample size, validity and reliability of instrument. Finally chapter four discussed about the summary of findings and discussion were it was found that risk survey will help to identify these risk that are insurable. Chapter five which looked into conclusion and recommendation therefore recommended to ensure that there is adequate law that will guide local insurer and insure for effectiveness in provement in local initiative.
Chapter One
1.0 Introduction
1.1 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 there is risk as a result of our difference provision. According to the oxford dictionary risk is said to be the possibility of something bad happening at sometime. In the future: a situation that could be dangerous or have a bad result.
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 were acceptable and how it compared with the same kind as the basis for deciding premium and other terms. According to David (2000) risk exists where the future is unknown. It represents both desirable events when one intentionally initiates certain thing in order to better socio-economic well being “Because of these desirable and undesirable events, an organization will want to transfer their risk to an insurance company, which there by brings about risk survey.
In the present day, the survey is still closely concerned with provision of underwriting information, in many situation the information disclosed by the complete proposal form, will need to be supplanted by surveyors reports before the picture is completed. However, the surveyors is now more closely concerned with indirect prevention, surveying represents one aspect of the wider subject of risk control. Moreover, practice varies among individual insures and there are no established criterial for surveying manufacturing firms. It may safety be stated that risk of unusual character or with special features will normally be surveyed in that firm. A safety or risk audit will be conducted.
A safety audit is a critical examination if an individual operation in it entirely to indemnity potential hazard, based 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 all levels of personnel or departments with the organization.
In many companies, the 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 Emeneite Limited, risk that presents a serious injury hazard is these where there is substantial involvement of machinery.
Reports from the health and safety executive in Emenite limited however show that 80% of accidents are not caused by machinery but by sample things falls lifting heavy weights or defective hand took.
Risks survey will thereby be of a long/greater things way in boosting the productivity in manufacturing firm via review of risk and it will also help to facilitates the improvements in the work force of the company like Emenite.
1.2 Statement of Problems
Manufacturing firms are exposed to various risk as a result of the nature of their activities in production of their products. So the role of risk survey cannot be over emphasized in the manufacturing firm because risk survey cannot be over emphasized in the manufacturing firms because risk survey plays high role in sustaining the growth and survival of the manufacturing firms in Nigeria.
For the purpose of this study the researchers identified some key factors that will help in identifying the problems.
- There is various risk exposure in manufacturing firms which are yet to be discovered.
- The way of handling such risk exposure has not been encourage.
- Risk surveyors in manufacturing firms has not been living up to their expectations.
- There have been lots of bottlenecks in implementing the proffered recommendations.
1.3 Objective of the Study
The objectives of this study have to do with the following:
- To find out the various risk exposure in manufacturing firms in Nigeria.
- To find out the various ways of handling such risk exposure in manufacturing firms.
- To examine the problems facing the insurance companies in identifying such risk exposure in manufacturing firms.
- To know the role of risk surveyors in helping to identifying such manufacturing firm.
- To make recommendation how to improve the manufacturing firm through adequate risk survey technique by the insurance industry.
1.4 Research Questions
- What are the various risk exposure in the manufacturing firms in Nigeria.
- How can such exposure be handled by the insurance industry in order to keep the manufacturing firms going.
- What are the problems facing the insurance industry in risk survey.
- What are the role of risk surveyors in manufacturing firms in Nigeria.
- What are the recommendations to improve risk survey in manufacturing firms?
1.5 Significance of the Study
The study will help:
- The insure to know the best techniques in treating those risks that threaten the existence of manufacturing firms.
- The insurer to know risks that are facing the manufacturing firms and provide solution for those identified problems/ risks.
- To enlighten the manufacturing firms about those risk they are exposed to in their daily operations.
- The study will also be relevant to academic who wishes to know the data and information about risk survey in manufacturing firms.
- The study will serve as a dimension to further research and it will give them the basic for validating or disapproving the finding of this research.
- It all is also being the basis for the award of National Diploma in insurance.
1.6 Scope and Limitation of the Study
Scope refers to the dimensional coverage of this work. It is restricted to Emenite limited Enugu. The information gathered will be used as reference to other manufacturing firms within the federation.
In carrying out the research work, the researcher was faced with certain problem which includes.
- Time limit as a student researchers. The problem of trying to keep up with lecturers and at the same time running around for the collection of necessary information for the completion of the research work.
- Finance is the cost incurred in carrying out this study is very light in terms of transportation photocopying internet materials and others.
- The corporation attitude of some students due to their duty of secretly.
- Data is the difficulty of obtaining relevant material pertaining to this research work.
1.7 Definition of Operational Terms
a. Hazard:
It is referred as the condition that creates or increases the chances of loss a rising from given peril (okonkwo 1998).’
b. Hedging:
It is a risk transferring mechanism, it can also be the option or future option where an organization may decide or arrange a contract with a supporter/dealer of many particular product to supply them and he pays premium, so that no matter the level off increase or decrease in price, the supplier must supply that product to the organization (Nwite 2004).
c. Insurer:
It can said to be insurance company who offers production/grant loss or insured peril (Aneka 2000)
d. Insured:
This is the individual or organization that pays premium to insurer on interest to be indemnified/pay compensation back to them (Insured) it negative unforeseen even happens to the subject matter that is insured.
e. Risk Control:
It is various ways of handling risk or way of controlling risk (Rayo 2001).
f. Moral Hazard:
This is concerned with the attitude and conduct of people. In insurance this will be primarily the conduct of the insured and insurer (Okonkwo 1998).
g. Premium:
This is the consideration paid by the insured for being covered by the insurance company.
h. Risk Survey:
It can be defined as the prime object of any survey to provide the underwriter with a complete picture of the risk being offered to cover (Jones 1989).
i. Salvaging:
This involves training of people for quick responses in protection of damaged plant or to prevent further damage (Nwite 2004).
j. Company:
According to the oxford dictionary it is a business organization that makes money by producing or selling goods on services. And is a voluntary association formed and organized to carry on a business.
k. Socio-economic:
This refers to the social science that studies how economic Activity affects and is shaped by social process. In general it analyzes how societies progress, stagnate, or regress because of their local or regional economy, or the global economy.
l. Manufacturing:
It refers to the production of merchandise for use or sale using labour and machines, tools, chemical and biological processing or formulation.
Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed towards the mass production of products for sale to consumers at a profit.
Chapter Five
5.0 Conclusion and Recommendations
5.1 Conclusion
The frame work depicts the types of risk management activities that should be considered throughout the outsourcing life cycle. Before and during the actual outsourcing effort, project management activities center on the sourcing strategy, which should be tied to the overall company strategy. The team must be cross functional and composed of personnel with the proper technical (product services), process, and analytical skills. The sourcing strategy should drive the supplier selection and relationship.
To mitigate contract management risk, it is best proactively plan and document in all aspects of the procedures, product specifications, transitional requirements, roles and responsibilities and exceptions.
The foundation to managing and controlling performance risk is built during contract planning negotiation, and post-award management of the contract and supplier phases. Here the primary tool is the development and negotiation of a comprehensive contract that includes and effective performance feedback mechanism that should be supplemented by performance monitoring and periodic contract and in vocal audits as well as other measurements and controls. Clarity of roles and responsibilities in this state will be critical to the management and will also support the achievement of supplier and contract management process efficiency and control objectives.
Finally, to minimize the risk of project failure, the team should employ proven outsourcing and risk management methodology.
5.2 Recommendation
The researchers made the following recommendations, after going through the researchers work
- That prompt honesty should be created to encourage the growth and development of reinsurance business in Nigeria.
- Government should aid the growth and development of reinsurance through stable government in order to ensure an effective management of reinsurance business in Nigeria.
- Oil and gas companies should be employ with serious reinsurance act 2003 which made it reasonable impact on the growth and development of reinsurance business in Nigeria.
- Ensure that there is adequate law that will guide local insurer and reinsurer for effective improvement in local content. Initiative.
5.3 Suggestions for Further Studies
Having seen that the scope of this research work is Emenite manufacturing company:
I suggest therefore, that other researchers should carry researches on other companies like Nigeria, brewery, Innoson manufacturing company in other to know the risk associated with their manufacturing processes and possible way of managing them.
Further studies are also suggested in the strategies for freckling the various problems and challenges countered in the growth and development of risk management in Nigeria.


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