Conscious risk management

Conscious risk management brings a lot more benefits than it seems including huge impact on the company’s finances, which thanks to proper procedure may be under full control. Saving money, we also care about the image of the organization and culture of work, which significantly affect achieving the desired objectives. If so conscious risk management brings so many benefits with it, so why do so few companies are able to approach the subject responsibly? Our experience suggests at least few scenarios of this state of affairs:

Firstly: Let us imagine that we have the right attitude, the desire and the means it to take care of the safety of our employees. However, despite the resources, we fail to accomplish the intended purpose or the results we get are disproportionate to the invested funds. So what are we doing wrong? … The answer is not as obvious as it might seem to be, and here we have a few scenarios:

  • we diagnosed the problem incorrectly, perhaps in the organization is an „unwritten tacit approval” for a certain group of employees as they were „outlaws” to which some regulations are not applied and, in fact, they exist only on paper. It is one of the most common mistakes. If we want to reduce the loss ratio we need to remember: the example comes from the top.
  • the lack of experience of those responsible for the operation of risk management, wrong decisions, misguided investments, lack of motivation changes in behavior, self-learning from their mistakes … It is a natural process of education every person, but if the company can afford it too, can’t you benefit from the others’ experience, consulting firms or experts? Thanks to spending a certain amount of money on external consultations we can save time and costs. Many organizations could prefigure about this.

Conclusion: Diversionary measures do not bring the desired results, and the lack of experience causes loss of time and money

Secondly: The company does not care about the safety of its workers entering the high loss ratio in costs of running business. Assumption of such organization is the most similar to each other and comes down more or less to this statement: „Sales earns on itself and must have freedom of act.” Question: is attention to safety a limitation of freedom for Workers’ actions? It is possible as long as inadequate safety measures are taken, or it is tried to solve the problems related to this topic incompetently. So why not ask specialists for help? Keep in mind that by taking care of safety, we care about the image of the company. I do not know a single vendor, who would be able to work off the image and financial losses – causing a serious accident on the road.

Conclusion: Lack of action could cost us a lot, so let us turn to specialists. Learn from the experience of others

Thirdly: The organization undergoes a number of changes, restructuring or consolidating. These operations are a period of increased activity strategy, thereby management focuses primarily on the elements of the revenue of the organization. This is a very accurate approach, but remember that profits are the result of math after deducting from the revenues of operating costs, and those in difficult periods can spiral out of control. If this happens, attention in the first place will focus on the aspect of balancing cost, taking their control. In our opinion, this is the period in which organizations are able to postpone the implementation of fleet risk management to a more peaceful time, which can take some time. We advise you in times of change, restructuring, consolidation to entrust the supervision of fleet professionals and benefit from the experience of a consulting company specializing in this subject. This ensures that even in the difficult moments our fleet is in good hands, whereby management focuses on the most important business processes, and therefore can gain the confidence of optimal management.

Conclusion: While going through a period of changes, let’s turn for help to the professionals to be able to take care of critical business processes without exposing the organization to additional risks

Above examples are only the „tip of an iceberg.” In fact there are a lot more reasons why risk management and safety are pushed to another plan of action or becomes abandoned. Contact Us and see how to diagnose the situation properly and implement corrective actions!