FLEET RISK MANAGEMENT
RISK ANSWERS
78


Trail and error  


Establishing an audit trail for each individual driver is the only way to manage fleet risk, says Chris Howell, director at the UK’s leading independent fleet risk assessment company Risk Answers




“Around 85% of companies have no risk management strategy in place. They are playing the lottery with the lives of their employees”
Life is a lottery and when you take to the road the stakes are high – employees who drive more than 25,000 miles a year have a one in 8,000 chance of dying while behind the wheel of their company car – a risk similar to that of miners dying at coal face, according to the Royal Society for the Prevention of Accidents.

But fleet decision-makers and company bosses can reduce the gamble millions of atwork drivers take every day by establishing a safety audit trail. The reason they fail to act is a mystery given the negative costs of bad PR, let alone the opportunity to reduce insurance costs – and save lives.

Around 85% of companies have no risk management strategy in place. That means all those companies are playing the lottery with the lives of their employees and other road users.

The Association of Chief Police Officers has produced a “Road Death Investigation Manual” which, in the event of a fatal or serious injury incident, acts as a guide to police officers who are now investigating all road deaths as if they were unlawful killings.

If an incident involves an occupational driver, the police will be looking for evidence of why the vehicle was at the scene, the mechanical condition of that vehicle and the physical condition of the driver. That is before they then move on to the company itself. And remember that investigations will be just as rigorous in the event of an employee driving their own vehicle on company business as the company is still liable.

Investigators will also want a company to produce accurate records detailing the number of hours that a driver has been on the road during a working week and show that a company’s working practices are such that a driver would not be placed in a position whereby driving for excessive periods was a requirement. They will also want to see vehicle maintenance records and what daily or weekly checks are carried out for vehicle roadworthiness.

Employers running fleets of large vans and HGVs must have an operator’s licence, under the terms of which an audit trail is required to show that the fleet is being operated within the terms of the licence.

However, companies operating small vans or cars are not subjected to such a licence and are therefore unlikely to have such an audit trail in place. That means that only by undertaking an audit trail can companies show to the police and Health and Safety Executive in the event of an accident that their fleet is operated along health and safety best practice lines. When the long arm of the law comes knocking on your door and wants serious questions answered, what will your response be?

The 15% of companies that have ceased playing the lottery should be able to provide answers, but the remaining fleets are leaving a potential court appearance, fine and prison term to chance – let along the negative PR effects.

But, before managing the risk, companies must be able to measure it down to each individual and that is why an audit trail must be conducted and is the starting point for putting in place a comprehensive fleet risk management strategy.

The five steps to completing a risk audit are:

• Identify the hazards: the vehicles – are they safe and are they suitable for the job; the routes – are they suitable; the drivers – their working practices, experience and training, pressures upon them to deliver, working hours; the activities of others

• Identify who might be harmed and how: drivers, passengers, members of the public

• Evaluate the risks and assess whether existing precautions are adequate, or more are needed. Take into account different types of driver, vehicle, journey and working practices

• Record significant findings

• Periodically review the risk assessment to ensure it remains valid


Crucially the risk audit must apply to all vehicles driven on company business irrespective of ownership and to all employees who drive on company business.
And while undertaking the safety audit, directives should be put into place governing such issues as the use of mobile phones, compulsory breaks to combat fatigue and overnight stops as a business expense during long trips.

Having undertaken a risk audit, companies must then analyse with an expert company, such as Risk Answers’ sister company DriveTech – also a member of the Fleetsafe Group of companies – solutions and ways of preventing and managing the risk down. Some of the areas covered would possibly include:

• Avoiding the risk altogether. In terms of occupational driving that means considering whether alternatives to the journey or type of travel exist

• Tackling risks at source rather than taking superficial short-term action. This might include work scheduling to restrict long hours, work being rescheduled to reduce the risk of employees speeding between appointments; choosing vehicles carefully and maintaining them conscientiously; specifying safe routes for journeys

• Selecting drivers who are entitled to drive the vehicle, ensuring they are competent to drive the vehicle through driver assessment. This may well include the use of online tools – such as the Driver Assessment Training Aid Programme (developed by DATA Programmes Ltd and sold through DriveTech (UK)) – and providing them with the right amount of information, training and instruction to enable them to drive or work safely

• Involving employees and their representatives in identifying and putting in place controls and other measures

• Clarifying the roles and responsibilities of all in the management chain from directors to the individual employee; setting standards for expected behaviour

• Putting in place measures to review experience and take further action where required thereby creating a loop of continuous improvement

• Ensuring that the systems apply equally to those who drive for work only occasionally and those who use their own vehicles on business

The audit is not a “one-off” task but a “live” report under which frequent checks are undertaken, for example in relation to making sure that employees who drive their own cars on business have insurance policies in place which mean they are properly covered for business travel. There are other considerations as well, such as it may be necessary to rewrite contracts of employment to take into account the new risk management policy. For example, as a condition of employment it becomes compulsory for employees to report any endorsements relating to motoring offences and failure to do so results in disciplinary action.


“Audit trails, risk assessments and management should become part of a company’s culture”
It is also crucial to monitor drivers’ hours behind the wheel and to decide what are acceptable hours/mileage both daily and over a period of time, taking into account the 1998 Working Time Regulations which are being overhauled to create the Working Time (Amendment) Regulations 2003, which for the first time will have direct application to the transport sector for both goods and passengers.

While it may be corporate policy to turn a blind eye to an occasional excessive stretch of driving, on a continuous basis it would suggest a certain lapse of the duty of care an organisation has to its employees. The consequences could be significant, with a nominated member of the board taking the rap on behalf of the organisation.

Having completed the risk assessment the findings should be presented to the management team, recommendations defined, priorities agreed and objectives set, policies designed, systems put in place, documentation checked and finally training requirements put in place.

Audit trails, risk assessments and management should become part of a company’s culture with a full audit repeated at regular intervals, both to keep drivers alert to their bad habits and to ensure they are not a hazard to themselves or other drivers.

Based on the risk assessment, decisions can then be made on whether additional training is required both for general driving and for vehicle/task-specific competence; refresher or familiarisation driver training might be needed and employees may need training in relation to the specific task they are being asked to perform particularly if their job has changed.

A one-off professional and comprehensive audit and report costs £1,000 per day and normally one day is sufficient. While cost savings vary from fleet to fleet depending on a myriad of criteria, we would expect reductions of at least 30% in incident numbers on a typical fleet if recommendations are implemented.

At the outset, conducting a risk management audit may seem a very onerous task – but think of the gamble being taken if you don’t.


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