Holistic risk-management for today’s haulage industry : Chris
North gives his thoughts on Risk Management
To some involved in the road haulage fleet insurance sector, the term ‘risk
management’ may still mean little more than driver training and
claims analysis. Whilst those can be helpful steps along the path
of risk improvement, arguably such measures fail to fully recognise
and address some key issues that can have a catastrophic impact on
the well-being of not simply truck drivers but various key
stakeholders including other road users – and insurers.
Behaviours that driver training may only temporarily address
includes distraction risks such as eating, smoking or using a
mobile phone, tailgating the vehicle in front, overly-fast, harsh
or poorly-executed manoeuvres and driving in an aggressive manner.
Perhaps of even greater concern is the fact that driver training
can completely overlook a range of fatigue-related issues.
Claims analysis to spot a variety of trends has been going on
for years. Analysis that spells out the names of those drivers
whose accident record is below average may tell an operator little
more than he or she knows already. Following that analysis up with
driver training programmes can help – with a little coaching,
almost all truck drivers can turn in an adequate performance during
the course of a typical in-cab driver training session. But what
happens once the initial post-course euphoria has evaporated or
once a driver is back behind the wheel away from the watchful eye
of a driver-assessor or instructor?
But in today’s tough economic climate with the road transport
industry hit as hard as any, the question many haulage operators
will be asking themselves is whether spending time and money making
their drivers safer should be seen as an expense that can be saved
when times or hard or an essential investment regardless of
recession. Progressive haulage companies will already recognise the
benefits of running a safe fleet. Those that have yet to recognise
the benefits of risk management perhaps overlook the fact that a
carefully designed programme that tackles all the key issues does
not simply benefit truck drivers and other road users; it can
significantly benefit their own business:
- Safer driving can yield substantial fuel bill savings as well
as economies through reduced tyre wear, less truck and driver
down-time and less management time wasted dealing with disrupted
delivery schedules
- Cutting accident frequency and severity should lead to lower
insurance premiums, a cut in uninsured damage and a marked
reduction in the risk of brand damage resulting from a fatal
accident involving a liveried vehicle
- It helps fulfil their responsibilities from an occupational
road risk perspective thereby also significantly reducing the risk
of a successful manslaughter or corporate manslaughter prosecution
following a fatality.
The 'holy grail' is a crystal ball that spots who’s going to
have an accident – before the accident happens. Certain
organisations have come close to developing that crystal ball using
sophisticated information gathering devices and predictive
modelling techniques to analyse driver behaviour and compare it
with a historical basket of data in order to predict whether a
driver is more or less likely to have an accident than the
‘average’ truck driver. The concern though is such a process may
lead to ‘paralysis by analysis’ as well as perhaps being
impractical in an industry where driver turnover can be a
significant issue.
So how can a haulage company best roll-out, and realise the
benefits of, risk management in harsh economic times? Arguably what
customers need most today are a series of logical steps and
affordable solutions that help them down the path of transforming
their business into a safe - and at the same time more profitable -
operation.
Key to risk improvement is a top-down management culture that
places safety at the heart of the business and at the same time
embraces the often-neglected need amongst drivers for appropriate
recognition and reward in return for adopting behaviours that
support a culture that places road safety firmly at the heart of
their operation. Without that management culture, drivers will
quickly realise that their bosses are simply ticking boxes or
paying lip-service in order to give their business a ‘safety wash’.
If a driver training programme is rolled out in a fit of
enthusiasm, then forgotten about by management, drivers will just
as quickly forget about or ignore what they have learned. If
technology that can report on driving style is installed in every
vehicle, perhaps at considerable expense, but the data captured is
never used, drivers will soon revert to type. So the first key step
is to get that management culture firmly in place.
Crucial too is the need to carry out a comprehensive risk
assessment that carefully considers every aspect of risk affecting
their drivers as well as their other staff. From an occupational
road-risk perspective, it’s essential that the risk assessment does
not ignore the risks posed by driver fatigue. Crash-related risk
factors that drivers’ hours regulations arguably do little to
address includes a range of fatigue-related issues such as the
risks posed by shift work patterns that overlook ‘body-clock’
issues, an overly-demanding delivery schedule with little room for
delays or potentially life-saving naps, the risk posed by a driver
not knowing what best to do, or not being allowed to take
appropriate action, in the event of becoming excessively sleepy
whilst driving, and the risk of a driver having a serious sleep
disorder with potentially fatal consequences – a significant risk
within the haulage industry. Once the risk assessment has been
completed, an appropriate action plan that prioritises and
addresses the issues identified needs to be drawn up and rigorously
implemented.
Drivers themselves need to have the necessary skills and
awareness of what behaviours underpin safe - and consequently fuel
efficient – driving. That’s where traditional driver training
programmes can play a vital role. But once drivers understand the
behaviours that lead to safe and fuel-efficient driving, they need
an appropriate incentive programme to encourage them to put the
skills they’ve learned into lasting practice. As well as rewarding
safe and fuel efficient driving, such programmes require desirable
outcomes to be clearly defined – outcomes such as achieving a
defined period of crash-free driving or achieving average monthly
fuel economy targets.
Finally, consideration should be given to sensitively deploying
appropriate ‘telematics’ solutions designed specifically to monitor
driving style and behaviour. It’s important to remember that such
devices are not quick-win ‘silver bullets’. Deployed in isolation,
they are no more likely to transform a sub-standard risk into a
star performer than any other tactical ‘quick-win’ device or
initiative that ignores the need to put in place a management
culture that places safety at the heart of the business, that
overlooks the need for risk assessment, that does not take into
account the need to ensure that drivers have the necessary safe and
fuel-efficient driving skills, and that fails to see the need for
driver recognition and reward in return for displaying appropriate
behaviour.
Bearing in mind the wide range of telematics systems being used
within the haulage industry, not just amongst different companies
but sometimes from an intra-company perspective too, careful
consideration is needed, and well thought out solutions are
required, if consistent information is to be gathered whilst at the
same time avoiding costly duplication of technology. That means the
chosen solution needs to be complimentary to an operator’s existing
‘black box’ system or systems as well as being able to quickly and
easily provide easy-to-understand information that supports driver
coaching and, where necessary, the devising of focussed re-training
programmes to meet the needs of specific individuals.
Given it’s insurers that are left to pick up the potentially
very serious financial consequences of a fatal accident involving a
truck, it’s no surprise risk management is a much-used term in the
haulage insurance industry. Truck insurance programmes under-pinned by risk
management measures designed to comprehensively and lastingly
address the risks posed by inappropriate driving style and
behaviour offer the potential to transform even the largest trucks
into some of the safest vehicles on the road. But if the full
benefits of ‘risk management’ are to be realised, it’s important
for insurers and brokers alike to keep in mind there are no
‘silver-bullets’. What is needed instead if real and lasting
benefits are to be achieved are holistic solutions that customers
have embraced in their entirety - culturally as well as practically
- and demonstrably put their weight behind from the top of the
company down.
