ABSTRACT : When a layman hears about risk management their minds will be directed towards the concepts of risk management and how it could be handled especially insurance. But the concept of risk management extends beyond this as insurance itself is a substitute of risk management.
However, the survey of risk management as an efficient means of achieving corporate objectives is short of expectation in view of the enormous role, this concept plays in the day-to day operations the insurance industries itself incorporates all elements of risk management procedure, especially in the identification of risk facing the proposed risk for insurance evaluation and positive control measure. A lot of factors have influenced the need for the insurance industries to have a separate risk management department.
These cogent factors includes among other technical economic, social environmental, culture, and frequent unpredictable changes in loss frequency and severity. Most of these factors can be quantified while, some cannot and those that cannot be quantified due to non availability of adequate, statistics are insured as special perils and those that can be quantified will allow a more valid and proper decision to betaken on them.
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Viewing it on the above process risk management can be regarded as the over – handling of the insured operation regarding their underwriting portfolio both internally externally.
Finally, Risk management as an efficient means of achieving corporate objectives will not be incomplete without a critical monitoring and recommended and to make sure that they are maintained in a perfect condition.
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TABLE OF CONTENTS
CHAPTER ONE:
1.0 Introduction 1
CHAPTER TWO
2.0 Literature review 11
2.1 Source of literature 11
2.2 The review 11
2.3 Selected and related concepts 12
CHAPTER THREE
3.0 Methodology 21
3.1 Research method 21
3.2 Research Design 22
3.3 Research population 23
3.4 Research sample / sampling technique 23
3.5 Measuring instruments 24
3.6 Data collection 25
3.7 Data analysis 26
3.8 Expected Results 26
CHAPTER FOUR
4.0 Data presentation and Analysis 27
CHAPTER FIVE
5.0 Summary and Recommendation 41
5.1 Summary 41
5.2 Conclusion 42
5.3 Recommandations 43
Bibliography 46
Appendix A 48
Questionnaire
INTRODUCTION
1.1 BACKGROUND
Risk is an ingredient of all human life. How best to live with is a problem for every individual and indeed every corporate body.
For a long time around, man has sought ways of controlling the risk elements to which individual, as private or public or as commercial and business ventures as exposed. Until about 25 years ago, the idea of risk management was thought of as a subject and as a result of distaste on the part of corporate and individual insurance buyers with gross inadequate premium rebate, given by insurance underwriters, to compernsate for higher risk retention and loss prevention techniques being adopted for their insured risks.
Before looking at the meaning of “risk management” it will be crutial to briefly appreciate and examine the concept of risk .W. J. Willet defined risk as objectified uncertainty regarding undersirable events. Also L.J Meldrum defined risk as “the protection of assets, earnings, liabilities and people of an enterprise with maximum efficiency and at minimum cost.
Risk management can be defined as the process or transfer mechanism of identification, evaluation and earnings of a business or other enterprise with the minimum cost and maximum efficiency in a paper presented by “Insurance Training Centre” Ogere Ogun state in April, 1987 titled “scope of risk management extend beyound mere handling of insurable risks; it does encompasses, the management of all types of risks. Risk management is concerned with formulating some forms of defensive strategy, which takes account of organizational assets and objectives.
This piece of work will critically examined the various mechanism employed by corporate body in the assessment of risk. This will include;
The identification of risk will include information on the proposal from which reveals the physical and morale hazards of the subject matter of insurance.
The evaluation of risk views placement of value on the identified risks, which threatens a corporate assets. The monitoring and control of risk highlights the physical and financial control of risks that threaten assets.
The centre piece of this work will be to thoroughly analyze various means of identifying corporate objectives. These will include retention, reduction and transfer of risk. Also, taking steps pre-loss and post loss objectives and the procedure for transfer and reduction of loss.
The entire work piece will be comprehensively packaged by ascertaining various hazards and inherent liabilities present at the risk and make recommendations based on experts opinion to enable underwriter to decide whether the risk offered is acceptable at standard rate or otherwise.
Finally, I will also suggest ways and means for prudent risk management in respect with those risk that corporate bodies in an entity is faced with and bring about reduction to loss exposure.
The major problem of this research work is centered on how to reduce risk
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