The Audit can be likened to a periodic general health
examination addressing the following types of issues:

• Is the organization exposed to any significant uninsured risks?

• Are limits of protection adequate?

• Are there any gaps or overlaps in protection?

• Is the structure of the program efficient?

• Is the program cost effective?

• How does the cost of specific areas of the program compare with that of similiar companies?

• Should deductibles be increased, self-insurance be considered, or cash flow enhancing mechanisms be utilized?

• How is the risk management function perceived and used by the operating areas within the organization?

• Does the risk management function have a clear, strategic plan and has it been accepted by management?

• Do the goals and objectives of the strategic plan stretch the risk management function, but, at the same time, are they achievable?

• Are claims being handled effectively?

• Can the incidence of claims be reduced through modification of the organization's safety and loss prevention program?

• Are appropriate services being received from the organization's insurance agents, brokers and insurers?