Corporate companies are under ongoing immense pressure to uphold their duty of care requirements during business travel, particularly after COVID-19. Companies are doing everything possible to guarantee the health and safety of their workers throughout the journey. With the aid of appropriate Travel Risk Management (TRM) solutions, it helps a business in adapting to frequently changing circumstances and assures employee safety. TRM processes unforeseen circumstances and their effects while communicating with traveling personnel about new surroundings and potential hazards. The need to instruct staff members on security precautions and emergency response procedures is also an essential aspect of TRM. Consequently, travel risk management becomes a crucial component of business travel.
What is travel risk management?
Travel risk management is the process of identifying, avoiding, and responding to risks that business travelers can encounter while traveling. This can include weather conditions, civil unrest, terrorism, natural disasters, pandemics, and many other things. The significant goals of travel risk management are to reduce the likelihood of a danger materializing, if at all feasible, and to have a strategy in place. These goals are integral parts of the organization’s hazard strategy and duty of care requirements.
Three crucial areas covered by risk management strategies when traveling for business are:
- Prevent: With the aid of real-time travel notifications, travel risks, such as natural disasters, can be reduced.
- Monitor: Security monitoring is required to evaluate the risks associated with business trip destinations.
- Respond: TRM entails timely response to the demands of business travelers. These can involve providing medical assistance and offering emergency contact information in various places.
What should a travel risk management policy cover?
Travel risk management assists firms in improving their capacity to respond to emergencies and plan for unfavorable situations. Effective TRM techniques encourage employees to feel safe by supporting them when they are away on business. Each company will have to modify its policies to fit its operations. The following six sections make up an efficient travel risk management policy:
1. Policy area
The part on the policy’s scope should address the necessity of risk assessments, as well as duties of care, the need to protect the security of personnel who are traveling, and the identification and reduction of hazards related to any upcoming business trip.
2. Roles and liabilities
The travel risk management policy must also be made clear in the policy; who is accountable for the risk policy? This should include individuals, pertinent departments, and other stakeholders. Additionally, this section includes the duties of staff members while on business trips and the duties of senior, line, and travel managers both before and after the trip.
3. Travel planning and approval
This section should be as comprehensive as possible due to its importance. Its purpose is to list the factors that managers and employees planning a business trip should consider.
This includes determining whether the employee is visiting a place with a high risk of security along with the providing the information on the following:
- Any political unrest in the area
- Likelihood of natural calamities
- General worries about regional security
- Localized endemic illnesses
- Entry prerequisites (particularly since the Coronavirus outbreak)
4. Travel risk analysis
Travel risk assessments are designed to find any dangers business travelers might experience when traveling for work.
The traveling employee’s health, medical dangers, or any medical attention while traveling must be evaluated before the travel. The travel habits of the employee, their travel schedule, and how this will affect them also be considered.
5. Reporting incidents and assistance for travelers
Company’s obligations to the traveler should also be covered by the travel risk policy if they have problems while on business. It also specifies how the worker can get assistance. Phone numbers, emergency contact, and any other details that the traveler can use to contact support or assistance should all be included in this area. It should also specify how any events that arise while on a work trip should be reported by the traveler and how the company will handle crisis management.
6. Insurance
The insurance policy must cover exactly what and what will not be covered by travel insurance. It must be quite clear and straightforward for the employee to comprehend what is insured, how to record any losses or mishaps, and how to submit insurance claims.
The term “travel risk management” refers to the process of recognizing and addressing all potential risks. TRM is essential for effective trip management and assisting staff members with safe travel. In the event of an emergency while on a business trip, corporations should keep a complete plan of action. This will not only assist them in upholding a solid duty of care but also boost employee confidence in the company.
