A guide to select and implement risk management approaches
Before the Fleet Forum Annual Conference Fleet Forum partnered with Clements Worldwide, a provider of international insurance solutions, to conduct a comprehensive global survey of risks faced by humanitarian organisations operating international fleets of vehicles. The outcome of this survey is captured in Fleet Risk 360° Findings, a primer on risk management in the aid & development sector, developed by Clements Worldwide. This primer can be used as a guide to select and implement risk management approaches to address the many challenges your organisation faces on a daily basis.
“Reputation risk is acknowledged as the highest impact event with the highest likelihood.”
Fleet Risk 360° Findings highlights, through the voice of aid and development fleet managers and logisticians, the need for increasing risk management capabilities in the sector. Similarly, the long-standing belief that vehicle fleets are mission critical is once again upheld in this research. Reputational risk, low financial resilience and high risk concentration are only some of the risks that aid & development organisations need to deal with.
The survey reveals that traditional risk transfer methods, such as physical damage and third party liability insurance remain prevalent, locally, regionally and internationally. While few agencies benefit from economies of scale by centralizing fleet risk management, newer approaches, such as internally funded insurance reserves are gaining traction. Ongoing risk management based on loss history, proactive methods and risk reduction are nascent in the sector. The report concludes by identifying risk management approaches that can be implemented to address the many challenges identified in the Fleet Risk 360° survey. For example, risk classification methods are introduced, enabling not only the identification of risk factors, but the possible treatment approaches. Additionally, the 5 principal steps of classical risk management are identified, including risk identification, analysis, evaluation, treatment and monitoring. An operating framework is developed and offered to risk management practitioners as a tool to assist in developing an effective risk management strategy.
Fleet Forum encourages aid and development organisations to take a closer look at risk management and use Fleet Risk 360° Findings to reinforce their risk management practices