Page 175 - RISK Management IC 86

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Q1. Describe the step by step process of safety audit
until preparation of report.

Ans. Refer Q7d May 2005

Q2. Give an outline of a Feasibility Report for setting
up of a Captive Insurance Company.

Ans. A decision to set up a Captive Insurance, should only be
taken after a careful investigation of the potential
advantages and disadvantages.

The preparation of a feasibility study may be entrusted
to an organisation's own staffs, including financial,
taxation, and legal experts as well as the risk manager.

Or, the task may be entrusted to a consultant or a broker
specialized in such works. The latter is a better option
as
(i) the internal staff may be committed too heavily with

their normal jobs to complete the task within a
reasonable period.
(ii) Outside specialists would possess the required
knowledge and skills which the internal staff would
take time in acquiring.

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