The Top Risks of 2015 . . .

Top 2015 Risks

Risky Business

In May, the Travelers Indemnity Company released their Second Annual Travelers Business Risk Index (.pdf) based on a survey of 1,210 business risk managers.

Transportation: Medical cost inflation tops the list of worries by a wide margin (75%). When asked what specifically worries them, risk managers in this industry said they worry about driving accidents caused by their employees (60%), employee injuries (60%), and distracted driving (57%). Employee safety training is widely used (61%) as a prevention measure.

Risk is part of any business. Risk, like rust, never sleeps. It is always there and never goes away. Risk, unlike safety, is never controlled, only managed.

But small business (the bulk of trucking companies are small) does not consider Risk Management much of a priority. In one of their press releases for this study, the Travelers said :

Few respondents consider risk management a strategic priority. Decision makers at small businesses (11 percent) were least likely to name risk management as a strategic priority or an important management activity, compared with medium-sized (20 percent) and large (36 percent) companies.

Strategy is defined as a plan of action or policy designed to achieve a major or overall aim.

Certainly, putting together a plan of action for a business sometimes seems like an exercise in futility in our era of rapid changes. But the implications of the above numbers (11% vrs 36%) seem clear: bigger businesses do more planning and have more carefully thought-out policies than do smaller businesses or organizations.

From the above chart, it appears that the biggest risks for transportation today are in rising costs. Costs will only continue to rise. There is still some turbulence in the world economy, leading to uncertainty. The only way to beat the cost game is by higher productivity. Higher productivity can only be achieved by working smarter— which means more planning, prudent risk taking, and intelligent risk avoidance.

Top Tip: Many small fleet owners do not realize their insurance company or insurance producers have safety support resources available. These resources range from safety websites and online training materials, loaner videos, loss control guides to partnerships with safety-technology vendors or safety experts. These resources are already included in the cost of the premium. Participation in some safety programs may result in a discount. Contact your insurance agent for more information.

Thank you for reading this.

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Disclaimer: Reference to any specific product, process, or service by trade name, trademark, manufacturer, company name or otherwise does not constitute or imply its endorsement, recommendation, or favoring by the author.