Risk Management

Fleet Risk Management Guide

Companies have a duty of care to ensure that a workplace is safe and that risks to health are limited: and fleet ownership is no different. Company cars that are driven as part of a business are considered part of the workplace and so there is an obligation for fleet owners to ensure their drivers are educated about the risks they face on the road and that they are safety conscious. This can also have legal obligations too in ensuring a company is compliant with legal procedures and not liable if an accident does occur.

Overall, this process is known as fleet risk management.

The benefits of fleet risk management

While companies have a duty of care, you shouldn’t assume that simply meeting obligations is the only advantage of fleet risk management. In fact there can be numerous benefits for your business, such as:

- Lower insurance costs: Reducing accidents can see your company rewarded with no-claims discounts on insurance policies.

- Increased productivity: Better fleet risk management can mean drivers do not lose time due to injuries, etc. This can mean increased productivity for your company and can boost the morale of your employees.

- Better time management: Fleet risk management can cut down on administration, paperwork and work rescheduling.

What are the different aspects of fleet risk management?

Fleet risk management can be split into numerous sections including:

- Driver recruitment: A recruitment process should spot potential and highlight any weaknesses so these can be addressed. Driving licences should be thoroughly inspected and references should be obtained: you can set your own standards as to whether you are willing to employ drivers with any minor convictions, such as for speeding offences.

- Driver induction and assessment: This is often the best chance to communicate the importance of safety. You may include a vehicle introduction; a formal handbook; medical examinations including an eye test; have a clear alcohol and drugs policy; and perhaps make a driver sit a written examination to ensure that they are up to date with the theory of driving safely.

- Driver training: Often as drivers become more experienced they think less about the actions they take which can lead to some sloppiness. Regular driver training can help to keep drivers fresh and also make them more productive and efficient.

- Driver performance schemes: You may wish to reward drivers with additional time off or financial rewards based on performance and avoiding accidents. Alternatively, you may wish to make them liable for the payment of an insurance excess when they are involved in an accident.

- Vehicle condition: Fleet risk management stretches beyond simply the driver and should also include a clear assessment of the vehicles in your fleet, including keeping up to date on the vehicle’s condition with driver checks; routine maintenance; safety checks and defect reporting.

- Route planning and scheduling: While satellite navigations have greatly aided route planning and scheduling there are still other factors to consider when it comes to fleet risk management such as: the type of road; road hazards; traffic density; and weather conditions. Ensure that sufficient time is allowed to complete each journey.

- Alternatives to road travel: In some cases you may be able to avoid road travel altogether: such as by investing in video conferencing technology.

- Accident investigation: Ensure you have a clear process in place in case an accident does occur. This should include a report form, interview and clear remedial action.

Fleet risk management solutions

There are numerous companies and software packages available that can aid fleet risk management.

In most cases they revolve around some form of vehicle tracking. Knowing where your vehicles are and how they are performing can help you highlight issues with drivers while also keeping track of the vehicle’s condition to limit the chance of any accidents occurring. Generally, fleet risk management solutions can be a cost effective investment by helping your drivers to avoid accidents, as well as reducing administration costs.



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Alphabet (GB) Limited

www.alphabet.co.uk

Alphabet is one of the top ten fleet management companies in Europe operating in 15 countries. We combine extensive automotive and financial services knowledge to optimise the efficiency of your fleet. Our personal approach, combined with our product knowledge and advanced online programmes, ensures transparency and makes us a reliable partner for clients all over the world. Alphabet offers a comprehensive portfolio of fleet products, with a broad selection of funding solutions, along with maintenance, fleet management, fuel management, accident management, risk management and vehicle rental.


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AN Baldry School of Motoring

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