There’s always some level of risk involved in running a business. But when you’re managing a fleet, the stakes are higher.
This is where fleet management software can help, because not only do you have to plan for common risks like mechanical failures and natural disasters, but you also need to deal with human error.
This is why business fleet insurance companies like Rideshur are coming up with better ways to protect businesses against potential risks. Read on to learn about the risk management options for your fleet.
Before developing a risk management plan, it’s necessary to identify the potential risks you’re likely to face when managing a fleet. Some of the risks are:
These are possible hazards located near your business. It could be a bad stretch of road or river flooding.
This includes engine breakdowns, brake failure, or power outages.
Possible physical hazards are chemical spills, traffic collisions, or fire.
Human Risks may include employee theft, drowsy driving, drivers who use alcohol and drugs.
After identifying the risks you’re facing, the next step is to conduct a risk assessment to evaluate the risks and identify the best ways to either eliminate or control them. The risk evaluation categorizes the level of risk into 4 groups. They are:
- Risks with a high tendency to occur
- Risks with a reasonable chance of occurring
- Risks with a small chance of occurring
- Risks with a minimal chance of occurring.
The reason for categorizing these risks is to determine the ones that need urgent addressing. For example, when you’re managing a fleet, you’re more likely to face engine breakdowns than getting hit by lightning. Hence, your focus will be to map out a risk management strategy that addresses engine problems.
Risk Management Strategies for Your Fleet
The following are risk management strategies to help protect your fleet:
There are tons of regulations at the local, state, and federal levels to navigate through. Hence, a good risk management strategy must involve compliance with all the regulations passed into law. To do this, you may need an experienced fleet manager who is familiar with all the red tapes and can ensure your fleet complies with them.
One of the best things about managing a fleet in the 21st century is that you have access to the different techniques that can boost driver safety. Fleet vehicles with telematics compatibility come with devices like speed recorders and dashcams that can monitor a driver’s behavior in real-time.
A driver’s behavior can make or mar your business. Hence, investing in driver training is crucial to ensure your fleet is safer. When drivers are well trained, they are less likely to get into accidents.
The safety of your fleet and freight depends on whether the vehicles are in good condition. This is why it’s important to regularly service, replace, or repair damaged parts.
Despite your best efforts, accidents can still happen. But if you get insurance, you’ll have coverage for damages to your fleet and your driver’s medical expenses.
Holistic risk management for your fleet involves proper risk Identification, assessment, and elimination or control. Contact Rideshur to find out more innovative ways to manage risks.