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1' 11E 1 1 11 H E Prevention is better than cure, which is why risk

21st February 2002
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Page 40, 21st February 2002 — 1' 11E 1 1 11 H E Prevention is better than cure, which is why risk
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Which of the following most accurately describes the problem?

assessment should be at the top of every operator's agenda. ks Steve Banner reports, not only does it not cost a fortune, it could actually save cash-strapped hauliers money.

A11 business involves an element of risk, but haulage encompasses more hazards than most. Vehicles have accidents, loads are tolen, and warehouses catch fire. )rivers' hours, maintenance, and iverloading offences mean that a ompany's 0-licence could be evoked, and then there are all the inancial risks that must be taken ato account, bad debt being the nost obvious.

As if all that weren't enough, ompany directors risk prosecuon if their trucks cause injury r death.

"Some have received susended jail sentences," points out :hris North, marketing executive t Road Haulage Association asurance Services (RHAIS) (see le case of Roy Bowles Transport, lov 1999). "Others have been ned up to £50,000."

The careful management of all iese risks can save your cornany money. Your insurer may 'ell offer you lower premiums if a rigorous risk management strategy is in place; and once you are confident that accidents have been minimised you can increase the excess payable on claims, lowering premiums still further. Accidents also cost money in terms of employee absence, vehicle and equipment downtime, missed deliveries and lost business.

Overall, the initial outlay on a risk management package could quickly be recouped.

Action

To manage risk, you must first analyse it, North believes that hauliers must implement a stepby-step system of identifying risks, taking action to minimise them, and documenting what they have done.

Documentation is vitally important, he says. If there is an accident, it allows you to prove that you took all reasonable precautions to prevent it from happening.

RH A TS has been closely involved in the development of a risk management system called ICON.

Launched 12 months ago, it addresses everything from the steps that have to be taken to ensure that loads don't tumble off the trucks transporting them, to inspecting a driver's licence before he or she is hired. For instance, a new driver's licence may carry a string of endorsements, suggesting that the holder is a hazard to other road users, and to your company.

ICON reviews delivery schedules too—are they devised in such a way that employees have to speed to complete them, risking an accident?

It also looks at daily checks on trucks. Do the drivers know what they have to check, and what might happen if they go out with a bald tyre or rear lights that don't work? Does anybody ensure that those checks are carried out?

ICON provides managers with written guidelines along with a list of specific, time-tabled actions they have to take, and gives employees instructions on what they must and must not do. All actions are recorded.

The package was drawn up in conjunction with consultants Road Skills and solicitors Ford and Warren, says North, and some 20 hauliers were consulted before it was introduced to ensure that what was being proposed was practicable.

"A risk manager goes out to see the haulier concerned with the ICON manuals and draws up an action plan," North explains. "It's been devised as a paper-based system, although all the information is available on CD-ROM too."

After the action plan is introduced the risk manager goes back every six months to ensure everything is going smoothly. His time is included in the cost of the system.

"The price depends on how many vehicles and depots the company runs, but ICON will cost you /1,585 if you are operating 20 trucks out of one depot," North states.

Each company will have specific problems that it is most prone to, and these are the first to be considered in any risk management review.

"You may have had several drivers injured while coupling and uncoupling trailers, so drawing up a safe working procedure that covers this activity, and explaining it to your employees, should be a priority," advises David Summers, managing director of RHA ICON.

So how do you identify those incidents that are causing you particular grief?

Claims

Sit down with your insurance broker and go through all your recent claims, advises Mike Hawkes, director of transport services at broker Heath Lambert. The list should include those involving property, employer's liability, and public liability, as well as vehicles.

"If they show, for instance, that one driver has had a string of minor bumps, then don't sit there and congratulate yourself that you've got off lightly," he advises. "Investigate what's been going on before those minor bumps turn into a major accident."

Don't neglect your carrier's liability policy. You may discover that you are fielding a lot of claims for damage and shortages.

If damage is the problem, then maybe consignments aren't being packed or loaded correctly. If there are lots of shortages, then perhaps the real problem is theft, and your security needs tighten ing up.

One company that has suc cessfully implemented a risl management policy is UC Logistics. As a consequence, risl manager Alan Clifford receive( the RTITB risk manager award a last year's Fleet Safety Forurr Awards for Excellence.

Annual risk assessments an carried out at each depot Drivers are assessed when the join the firm, every three year thereafter, and after three avoid able crashes, and every depo has a driver trainer.

The way in which vehicles ar routed within depots is reviewel annually, with the focus on area such as reversing and safe cross ing points, and a computerise, database has been introduced t record, classify and measur crash details.

Training

"We've also run Drivers' Hour training sessions for traffi office staff and looked damage reporting procedures, says Clifford.

As a result the accident rate ha fallen from 24 per million mile to just 13, although zoos saw rise to 17.

"In an insurance market th has seen premiums rise by an thing from 25 to 40% ours hs. risen by a mere 7%," he say: "What's more, we've had 160,000 rebate from our insu ers, which we've spent on mm training."

UCI Logistics operates zo trucks and 350 trailers out of depots, and distributes chocolat shoes, pharmaceuticals and fu niture among other goods.

Clifford is a fan of DriveCare "How's My Driving?" scheme.

It encourages members of ti public to report examples bad—or good—driving by rin ing a number displayed on UCI trucks. "It has a positive impa on driver behaviour," he believe Warehousing clearly brinl risks all of its own, with the mo obvious being fire. Fire preve. tion, and safety procedures in tl event of a blaze, should be for most both in warehouse clesiE and daily usage, says B( Tennuci, group risk and inn: ance manager at Wincanton.

"Some of the goods ston could be highly flammable, as don't forget that some of tl materials used to construct co stores burn particularly well they catch light," he warns.


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