This is one of the most useful methods for identifying risk areas. Physical risk inspection allows the risk manager to have face-to-face conversation with the workers on the floor as well as the risk manager will have a very clear and precise picture of the risk environment of the organization.
This will not be practically possible for the risk manager to visit each and every part of the large organization; the risk manager can randomly visit the areas of organization to locate risks, change if any occur requires frequent inspections. The picture which is made on papers about the organization is totally different from the actual picture. Usually a perfect situation has been shown in the paper which in practice is not according to that.
There are specialized Risk Surveyors, who can be appointed to carry out the inspection and then report back to the management, adding their own assessment and suggestions. The reports prepared by them are very useful for the risk managers but the risk manager should keep in mind that the report prepared by risk surveyors for a particular purpose and they are not embracing all the risk events which could occur on the floor of organization.
The biggest advantage of physically inspecting risk is proper risk assessment. Identification of risk along with the suggestions of managing them is another advantage of physical inspection. The drawback of physical risk inspection is that it is quite expensive in terms of both the time and money. When the risk manager will visit the factory floor on a specific day, only the activities of that day will be reflected and remaining day’s activities will not be taken into account, which is a disadvantage in properly assessing the risk. The risk manager will not be able to physically inspect those areas which are not included in the organization but the organization is depending on that department for example suppliers of raw materials.