2 min read

Corporate Travel Risk Management – Keeping up with Constant Change

Corporate Travel Risk Management – Keeping up with Constant Change

The new “normal” is expecting the unexpected. Random terror attacks, civil unrest, natural and weather-related phenomena seem to happen with increased frequency these days. Maybe a better phrase (at least in the world of Corporate Travel Risk Management) would be to “anticipate” the unexpected and be ready to respond with a carefully designed plan. Here are a few things to consider when building your travel plan:

Interdepartmental Collaboration Is a Must

An effective risk management plan reaches every level of the company. For this reason, it is imperative that HR, Legal, C-Suite, Corporate Security, Marketing and Travel all come together to draft a comprehensive policy and make certain that measures and means are in place to enact and enforce the policy as well. Collaboration and cooperation don’t stop at the implementation of the policy, however. An effective policy only works if every employee of the firm, regardless of rank or level, adheres to it, no exceptions.

It’s All About Location

In order to assist an employee traveler in a crisis situation, it is of utmost importance that you know their whereabouts. To this end, most risk management policies worth their ink require that all airline and hotel reservations be made through the corporate travel department. It is simply impossible to keep track of employees traveling either domestically or abroad if they are securing their own bookings. A secondary benefit to this policy is that it may also make it easier to track and control expenses as well.

Keep it Business

It used to be acceptable for an employee to squeeze in a couple of vacation days in a different locale by simply extending the return flight of an already scheduled business trip. In today’s environment, this can open your company up to increased liability and undermine your Standard of Care, should the unexpected occur. This also holds true for the employee who wishes to have his/her spouse or significant other accompany them on a business trip. Most companies have done away with this practice altogether, but for those who still allow it, express written authorization is required, as well as paperwork which indemnifies the company from liability.

Don’t Put All Your Eggs In One Basket

Most risk policies place limits on how many employees can travel on the same flight. If the sales team is traveling to a conference in San Diego, for instance, staggering the flights with only two to four employees per flight is a good practice as a means by which to reduce liability. The same holds true for C-Suite employees with the additional requirement that the CEO and CFO never share the same flight.

Where the Rubber Meets the Road

Many travel policies overlook the liabilities inherent with automobile rentals, even though there is a significantly higher chance that the unexpected occur here rather than in the air or hotel. Because of this (as well as another means by which to control expenses) many policies require that all car rentals be made with a corporate credit card and that an employee’s personal insurance is never used for the purposes of renting a vehicle for use on company business. Most corporate cards offer insurance coverage on rental vehicles. Using the corporate card also ensures that any pre-negotiated company discounts are applied to the car rentals.

Bringing It Home

Although we have covered some of the more common considerations for a Corporate Travel Risk Management plan, there are seemingly countless other considerations that should be weighed against your company’s risk exposure level. The experts at AmTrav can help your company evaluate its risks and implement an effective plan that will help ensure your firm’s Standard of Care is upheld around the clock and around the world.

 

By: Denise D.

 

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