A robust risk management strategy will help your operation run more efficiently and avoid costly litigation in the event of a catastrophe.

This article is from the January 2016 issue of the IC Safety newsletter. To view the full issue, visit the IC Safety archive.

As a business owner, you make daily decisions about the benefits and consequences of your choices, particularly those related to safety. You may not realize that you are performing basic risk management techniques. Simply put, risk management is the formal process of analyzing and controlling any undesired event or outcome.

Why focus on managing risks?

A comprehensive risk management strategy will result in a more efficient operation that increases value to the carrier and customer. A robust program will also help avoid costly litigation in the event of a catastrophic event.

More than ever, plaintiff attorneys are using any negative information found in written programs and/or training and compliance records against the carrier and the company they are leased to. Furthermore, attorneys are attempting to have punitive damages levied against companies for any negligence they can identify on their part.

Start your risk management strategy

It’s important to evaluate your risk management strategy at least annually. Begin planning now with these five steps:

1. Understand the risks your company faces related to day-to-day operations, regulatory compliance and financial decisions, to name a few. Put these risks on paper and rank how likely they are to occur and how severe their impact may be. This ranking will help you prioritize your efforts.
2. Develop goals to address the risks, such as reducing auto collisions and worker injuries, improving compliance scores or avoiding service interruptions.
3. To meet these goals, plan specific activities that are measurable, achievable, relevant and timely. Be sure your activities are not just busy work; they should produce actual results!
4. Create a safety dashboard that sets baseline measurements, tracks your progress and allows for regular communication of performance throughout your company. Remember, "what gets measured gets done."
5. Build a toolbox of resources to help you carry out your plan. Include websites that cover safety meeting topics and regulatory agencies such as FMCSA and OSHA. Make a list of vendors that offer compliance manuals, fleet equipment, safety supplies and training solutions. Visit our online training and safety supply ​program pages for resources that offer special discounts to Protective customers.