The importance of travel risk management is frequently highlighted with the need to consider all known risks as well as the potential challenges and obstacles in order to formulate detailed contingency plans to avert or overcome them for organizational success. The nature of the risk is determined by the uncertainty of operating within a specific macro environment, and firms, over the past few years, have devoted increasing attention to managing risks before unfavorable occurrences cause an adverse impact on their profitability and business integrity.
The field of risk management usually entails project management, but its scope has also extended to employee risk management. This looks at minimizing compensation costs to employees, owing to the effects of several work risk factors, such as use of dangerous chemicals, injuries, and sick leave.
However, there is another important sub-discipline in the field of risk management that continues to get less recognition and attention; employee travel risk management. Here, we outline the importance of travel risk management and what are some of the advantages of integrating it into an organizations’ overall risk management program.
The importance of travel risk management
Travel risk does not only mean getting stranded as a result of earthquakes, riots, or volcanoes. Although these are certainly high risks, travel risk management involves managing uncertainties on a regular basis. These uncertainties are those that can pose great threats for your employees, affect your operations, and also undermine your reputation.
More importantly, business travel forms a large part of all businesses. Employees are required to meet new customers and participate in several international conferences and seminars to increase corporate visibility and business activities. Multinational corporations, which have suppliers stretched across different countries and territories, also require quality control inspectors to perform routine monthly audits to supervise their operations. Furthermore, employees have to travel to remote areas in difficult weather and political conditions, making them easy targets for vandalism and other threats.
Considering these important realities, the risks facing employees are considerable and it is up to employers to make sure that they have in-depth travel risk management policies to ensure worker compensation stays minimal.
Advantages of incorporating travel risk management
There are a number of advantages organizations can benefit from for incorporating travel risk management with their overall risk management policy. These are as follows:
1) Promote healthier and safer work ethics
Ensuring the safety and health of your workers by conforming to the WHS standards will help bring about a positive effect on your company culture. This will greatly raise the confidence and commitment of your employees to work for the organizations, resulting in higher productivity.
2) Reduce costs
Cost reduction is a focus for every organization. But instead of cutting costs where needed, you will ensure that compensation benefits given out to employees for facing injuries and sick leave will be averted through careful consideration of all types of risks that could befall your employees.
3) Ensure smooth functioning of operations
Just as risk management aims to secure chances of successful outcomes of projects, travel risk management for employees will do the same. By planning ahead, employees can avoid any adverse effects on their work that could have significant consequences for their assignments or projects.
In summary, travel risk management is a key area for organisations to invest and devote time for preparing detailed and effective policies. This will increase employee participation in their work and help avoid unfavourable outcomes as a result of uncertain factors.