Driving Insight - Fleet Risk Management
Risk Management Implementation Ian McKenzie, group business development director, FMG Support
“The very nature of risk management is complex and whilst this has stimulated endless debate on related legislative issues such as duty of care and corporate killing, it has also created an aura of mysticism. There is an uncomfortable realisation that there is no universal blue-print for implementing a risk management strategy. A distinct lack of understanding about what ‘risk management’ actually means, coupled with limited knowledge on what practical measures need to be put in place, has led to a state of confusion and a worrying level of apathy throughout the industry.
This state of uncertainty is perpetuated by fragmented customer structures. How can a stringent plan be understood, owned and implemented if middle management report into varied directors who are then responsible for the analysis of different sets of data and liaison with separate suppliers? A lack of cohesion may also mean that valuable data is often lost, which if captured, could provide more obvious solutions for the customer and business alike. Through effective communication and as part of a wider risk management strategy, findings such as identifying that accidents could be reduced if a regular meeting on a Monday morning was moved from 9am to 11am, could have an immediate impact on risk and costs. Such tangible illustrations may even help decision makers see more clearly how this can directly apply to their business.
We also need to ask whether the present culture of the industry supports the implementation of an effective strategy. Until more suppliers, from insurers to leasing providers and brokers, acknowledge the need to communicate and identify what is best for the customer, any risk management strategy will be compromised in the struggle for customer ownership. For example, a leasing company could bolt on incident management as part of an overall deal, thereby tempting the customer to make a commodity purchase rather than viewing incident management as a fundamental part of the risk management strategy.
The answer lies in bringing all parties together to identify the most appropriate solution for the customer. Until a holistic approach is adopted and risk management is embodied in business strategy and at the heart of corporate culture, fleet decision makers will continue to be mystified by an issue that they perceive to be difficult and daunting. The catalyst for change must be driven from within or change will be forced upon us."
