When it comes to corporate travel, risk management is a very important part of corporate governance. There are a number of considerations that need to be reviewed on an ongoing basis, to ensure your company’s risks are kept to a minimum. While there are many aspects of business travel to analyse, here are the top six you should be reviewing:
- Risk to personnel:
Example: Employees travelling to high risk countries, whether it be for political reasons (civil wars, bomb attacks), or health (Ebola outbreaks, malaria) and safety (fatigue through over-travel) reasons. It is vital to ensure the travel insurance covers security and health concerns.
- Risk to reputation:
A company can be criticised very publicly if their carbon footprint is too high, or if their employees contract a disease due to the failure to inoculate prior to travel. Misuse of travel allowances or unethical conduct by employees can also be very damaging.
- Risk to data/equipment:
Data carried or collected by employees could be stolen (laptops), or other specialised equipment could be lost or damaged.
- Legal risk:
Companies need to ensure their travel compliance policy is up to date and covers every area, such as tracking employee travel to high risk areas, ensuring that foreign tax laws are complied with, or having plans in place if any illegal activity should be conducted by travellers.
- Financial risk:
Misuse of travel expenses and allowances remains a constant problem with corporate travel. Unauthorised upgrades on flights, or in hotels, or non-related expenses being claimed post-trip are examples of common internal fraud activity. It is extremely important to track all expenses and conduct audits regularly so travel expenditure is accurate for reporting.
- Risk to productivity/trip effectiveness:
If baggage, equipment or personal items are mislaid en route, productivity can be lost, or important meetings missed. Mobile phones may not function properly in other countries, or a failure to meet immigration requirements can all delay travellers, which could have a negative effect on the business they are there to conduct.
Reduce a lot of these risks by using travel management software
A well designed travel expense software package can significantly reduce the risks a company faces when their employees travel for work purposes. TraveluXion, an industry leader in the T&E space, have purpose-built procurement management software that can assist in travel spend management, online booking, expense management and financial controls. Part of their sales cycle involves assisting companies with their processes around the procurement of all business related travel expenditure, as well as identifying and correcting risks to the company. If you have a need to take control of your corporate travel spend, contact TraveluXion today to find out how they can assist.