Wednesday 1 February 2017

Better Risk Data, Better Decisions, Better Risk Profile


Once upon a time a fleet never knew why its claims record was poor.  Indeed, some fleets just put it down to bad luck or simply the inevitable downside to being a successful company.

Then, one day, somebody in HR said, ‘shouldn’t we look a bit closer at why these accidents occur and shouldn’t we check out how legal and competent our drivers actually are?’

Somebody else in Health and Safety then went on to say, ‘wouldn’t it be great if we could monitor more closely what these drivers are really doing out there on the road?  Then we might be able to help them to avoid putting themselves at risk’.

The fleet manager then said, ‘so who exactly is going to analyse all the information we’re about to gather on all these things and then decide what to do about it?’

‘Well’, said the guys from HR and Health and Safety, ‘You are’.

This analogy is not far from the truth and of course, the entry point to any fleet is still via the fleet manager role even though HR and Health and Safety departments have an input.

 If we skip forward in time to the current day, the fleet manager is confronted by accident data from one supplier, licence check data from another, telematics data from another and a whole myriad of internal influences on how his fleet should be run.

Risk data arrives in different formats, at different times from different sources, which means the first job of consolidating it represents an ongoing technological challenge. The second job of analysing what the data tells the fleet represents a further time-consuming job for the fleet manager.

The third task of deciding what to do with the data requires judgement about the severity of the non-compliant data.  It also requires the setting of thresholds of acceptable risk and the knowledge of the available tools to remedy the risks that have exceeded those thresholds.

The fourth task is to put the remedies in place, which may need authority to invest from the Board.  It also needs somebody to co-ordinate the delivery of the remedy with the driver.

The fifth task is to measure the effectiveness of the chosen remedies to see whether the overall risk profile of the fleet has been improved.  This is not just a case of looking at the claims experience. It requires work with drivers to assess whether driving safety culture has changed within the fleet.

At the end of the day, with all the other responsibilities being carried by the fleet manager, it’s a fair bet to say these five tasks will, at best, be sporadic, which means something will be missed and that something may represent a major influencer of overall risk.  So, for this reason, fleets usually need external help from a risk management provider who specialises in consolidation and analysis of data.

RVM assists in this space and can be contacted on the number below if you’d like details of how we help our clients with these five risk-based tasks.

0113 224 8800

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