Corporate travel risk management (CTRM) manages business travel risks through real-time data and analytics. It’s the process of identifying, assessing, and mitigating risks associated with business or corporate travel.
Travel in general can be very complex, but business travel is even more so. That’s why having an efficient and effective CTRM system is key. It can make business travel feel safer, more seamless, and cost-effective.
Here’s everything that goes into corporate travel risk management and what to consider when approaching a travel risk assessment.
The Components of Corporate Travel Risk Management
Corporate travel is the cost of doing business and a necessary expense that business owners deal with every day. While traveling to do business can have significant perks, it also requires time, effort, and money and comes with a variety of unique risks.
With a proper corporate travel risk management program, corporations can mitigate the risk of business travel. A proper CTRM program has four main components to know: preparation, planning, execution, and adaptation. Here’s what that looks like up close.
Identifying Risks
Effective business travel risk management begins with thorough preparation, which is arguably the most critical initial step.
When recognizing the need for Corporate Travel Risk Management (CTRM), agents have to answer some key questions: Who will oversee the program? What are the specific risks the company faces? What insurance and support coverage are necessary? How will the program be implemented efficiently?
The policy should encompass pre-trip planning, on-trip management, and post-trip evaluation. It should also be tailored to the current business travel environment and the associated risks.
A new policy will stress the importance of ensuring that business travelers are well-informed about travel risk management and understand their responsibilities in following it.
Preparing the Principal
Once a business travel policy is in place, developing a robust plan is next. This ensures the policy is actionable, practical, and adaptable across various regions and travel destinations. The planning phase involves a thorough assessment of region-specific risks, equipping executive protection agents to anticipate and manage these challenges effectively.
What’s more, they need to be prepared to respond appropriately in emergencies. That’s why training is so important during the planning stage as it helps minimize risks and mistakes.
Tracking the Principal
With a solid policy and comprehensive plan in place, businesses can now focus entirely on executing their business travel operations. This phase is where travelers proceed with their business travel itineraries. It’s important to note that business travel risks can change at any time, and executive protection agents should always be aware of the latest risk information.
The execution of business travel should adhere strictly to the business travel policy. The question during this phase is: How prepared is the agent for business travel risks and recovery?
Tracking principals, maintaining communication, and having contingency plans are some of the priorities executive protection agents should emphasize. These measures ensure that they can respond effectively to any challenges encountered during travel, safeguarding both personnel and operational continuity.
Responding in Case of Emergency
The policy should enable close protection agents to respond promptly to evolving business travel risks. While principals are on the road, their protectors must monitor the situation closely and be prepared to react swiftly in emergencies.
The EPA needs to know the principal’s whereabouts and maintain communication channels for emergencies. Additionally, they should have contingency plans in place for travel disruptions such as flight cancellations or natural disasters. Comprehensive insurance coverage is also vital to protect both the principals and the business in unforeseen emergencies.
Given the dynamic nature of the business travel landscape, close protection agents (and businesses) should continuously adapt their Corporate Travel Risk Management program to current conditions.
Approaching Corporate Travel Risk Assessment
While on the road, both business travelers and their principals need to be aware of the risks associated with this type of travel. A key component of that is conducting a thorough travel risk assessment to identify the threats a person could face during their trip. The result should be in the form of policies and procedures that mitigate risks. Here are just a few crucial aspects that go into making this assessment.
Travel Purpose and Destination
Business travel involves various purposes and destinations, each with distinct implications for risk management. The purpose of travel significantly influences the level of risk for business travelers.
Typical trips such as meetings or conferences generally pose low risks and require minimal safety measures. However, activities like fieldwork or research in high-risk areas demand thorough risk assessments due to elevated security concerns.
Understanding these different travel purposes is crucial for tailoring risk assessments effectively. A targeted approach allows EPAs to implement specific policies and controls that address the unique risks associated with each type of travel, rather than applying a generic evaluation across the board.
Also, the risk profile of travel destinations can evolve. Therefore, an agent has to stay informed and adaptable. They can do so by regularly accessing updated information through government travel advisories or other credible sources.
This proactive approach ensures that close protection agents can mitigate risks effectively and safeguard their principals during business travel, regardless of the destination’s current risk level.
Traveler’s Gender, Age, and Health
Considerations regarding the health of employees before approving business travel are crucial. Assessments should determine if the employee is healthy enough to travel and if any pre-existing medical conditions could be exacerbated during the trip. Additionally, knowing the traveler’s immunization records is essential for ensuring their health and safety while away.
Health considerations for business travelers are significant for ethical and liability reasons. Companies have a responsibility to ensure employees are healthy and not at risk while traveling. Furthermore, if an employee becomes ill during a business trip, the company may bear liability.
To gain a comprehensive understanding of a business traveler’s health status, close protection agents should have access to their client’s pre-travel health assessments administered by healthcare professionals. These assessments help identify potential risks associated with the trip and inform decisions about approving travel.
Mode of Transportation and Route
When planning business travel, it’s essential to determine the mode of transportation the traveler will use. Whether it’s flying, driving, or taking a train, each has its own set of associated risks. For instance, air travel is generally considered the safest, yet it still poses risks like turbulence and lost luggage.
Those conducting risk assessments should carefully consider the traveler’s chosen mode of transportation. It’s important to determine if the route is direct or indirect, as indirect routes increase the risk of getting lost and being exposed to additional hazards such as crime. Ensuring travelers take the safest route and transportation options available is crucial for mitigating potential business travel risks effectively.
Final Thoughts on Corporate Travel Risk Management
Corporate Travel Risk Management (CTRM) is essential for managing the unique challenges associated with business travel. By leveraging real-time data and analytics, CTRM enables agents to identify, assess, and mitigate risks effectively throughout the travel lifecycle.