Highly uncertain business environments can be a good time to look at the interrelationship between operational strategy and risk, as businesses diversify and adopt new processes to survive and stay future fit. During this time, evaluating your risk management programme and risk culture could help bring some much needed stability, as well as supporting safer and more profitable operations.
What does an effective risk management programme do?
An effective risk management programme:
- Encourages safer driving which will result in fewer accidents, reduced tyre wear, less truck and driver down-time and fewer disrupted delivery schedules – all of which helps keep fleet and fuel costs down.
- Helps reduce accident frequency, severity and associated claims by providing more control options. Presenting a better risk profile to insurers could lead to potential insurance premium reductions and a reduction in uninsured damage and brand damage.
- Enables organisations to fulfil their duty of care responsibilities – minimising the risk of a corporate manslaughter prosecution following a fatality.
- Provides an added layer of defence – installing intelligent security technologies (CCTV, etc.) to deter criminals and minimise the impact of cargo theft.
- Helps reduce the risk of driver injury and potential prosecution and the risk to members of the public and the negative publicity a serious road traffic collision can bring.
Insurance companies increasingly expect to see evidence that firms are taking steps to actively manage risk. An effective risk management programme better presents your risk profile to insurers, which can help in securing more competitive premiums.
Starting out your risk management framework
If you’re struggling on where to start, we’re here to help, having gained extensive experience at designing effective risk management programmes. Here’s some of our top tips:
This can be as simple as ensuring that managers and drivers understand their responsibilities, the potential risk and adopt the right behaviours. Undertaking risk assessments designed to reduce the occurrence of fatigue-related incidents. Or incentivising new fuel-efficient driving behaviours.
Provide additional training
Training will also play a key role in helping to create and sustain an effective safety culture. For example, we support our clients by connecting them with accredited providers who can deliver specialist accident reduction focused training. This may form part of the 35 hours required for the Driver Certificate of Professional Competence (Driver CPC) training.
Support drivers with technology
Exploring new technologies could form another element of the risk management and risk reduction programme. From the utilisation of telematics and cameras that capture key information that can be used to counter claims or demonstrate that drivers are not responsible for an event. To proximity sensors, automatic control devices, and lane departure warning systems that can reduce rear end collisions and crashes resulting from lane changing.
Our experts often meet with clients to advise them on technologies that can help improve driver safety, monitor driving styles and behaviours, or support enhanced journey and contingency planning. We’re here to share our experiences, flagging known pit falls and recommending the most appropriate solutions, should this be something you wish to explore.
Next steps - be proactive
Reducing the frequency of incidents and accidents – and the claims associated with such events - is something we’ve been supporting our clients with for years. Working with clients and insurers on a tripartite basis to maximise the resources and tools available. And offering claims management information/analytics to identify trends and assist with targeted communications/interventions. If you have any questions regarding the themes in this article, contact your Marsh Commercial advisor or get in touch.
This article is taken from our latest eBook Transport and Logistics: staying future fit in uncertain times. Gain insights on the latest trends and risks confronting the UK transport and logistics sector. Download your FREE copy here.