To people outside of the world of corporate travel, risk management can bring to mind extreme images of earthquakes, tsunamis, riots and bombings. While this does form part of travel risk management, the more conventional understanding of the term is about the risks a company faces when their employees travel.
A corporate conducting business in other areas of their own country, or internationally, has to ensure they think of every risk possible, both to the employee doing the travelling and the company itself, in terms of liability and reputation. When looking at the safety and security of the traveller, one has to consider the destination, is it in any kind of political turmoil with potential terrorist activity, including kidnappings or hostage situations? Does the destination have any current health risks, such as an outbreak of Ebola, malaria, yellow fever? Are inoculations needed prior to travel?
When it comes to a company’s reputation, it’s important for the employee to know they are the face of the company when travelling, so they have to conduct themselves accordingly. Misuse of travel expenses or illegal activities conducted will damage a company’s reputation considerably.
There are many other risks, such as the loss of company equipment or information, or the employees’ personal effects. Legal risks are another aspect to be taken into consideration – failure to comply with tax or immigration requirements and attempts to bribe officials are just the tip of iceberg.
There are four elements to be used when planning your corporate travel risk policy:
- Assign management responsibility: travel risk management involves a team effort from every department, including HR, security and medical. Aspects unavailable internally should be outsourced, such as specialist travel security providers, medical assistance or travel management companies.
- Determine the types of risks: create a list specific to your organisation.
- Assess the risk exposure: identify how effectively your organisation will be able to manage risks – this may involve a specialist advisor.
- Mitigate or manage: the means to managing and mitigating travel risks include education, tools, reporting and third-party services.
TraveluXion offers professional consultancy services for travel procurement
With years of experience, the team at TraveluXion can help you formulate your corporate risk management policy. They have specially designed travel expense management software which provides organisations with an easy-to-use travel spend management tool which will transform the way your company organises travel arrangements. Contact them today to see how they can assist your company today.