Travel Risk Management

1
Travel Risk Management

• By NBTA Global Risk Management Committee

2
Defining Travel Risk Management

• Since 911 global organizations now deal with both
  the perception and reality that there are
  increased risks to employees and business
  operations around the world.
• Now there is a need to provide a systematic
  approach to understand risk, what people may be
  impacted and what the organization should do to
  protect its travelers.

3
Separating Fact from Fiction

• Sars created near panic for both companies and
  travelers
• Is the Avian Flu a threat or another Y2K?
• If a plane departs Shanghai at 900pm and flies
  due west at 500 mph, how much time do you have to
  stop a deadly pandemic?
• The London Tube Bombings
• News vs. Intelligence

4
Risk Management 101

• Has your company identified both internal and
  external events that could affect the
  achievements of your companys goals?

5
Influenza

• Serious disease
• Affects 10-20 per year
• In the USA in 2005 30,000 deaths /114,000
  hospitalizations Vs. 115 deaths from Avian Flu
  since 2004 Globally
• Est. 12 billion cost per year
• Greatest cost is in lost productivity

6
Define Travel

• Anytime an employee leaves their office
• on official business
• Air, Hotel, Rental Car, Train, Ship
• Domestic and International travel
• Driving from one facility to another
• Taking public transportation

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Travel Risk Management Multi-Disciplinary Action

• Security
• Risk Assessment
• Crisis Evacuation Plans
• Emergency contact info
• Up to date itinerary
• Medical
• Pre-trip health planning
• Immunizations
• Medical assistance and evacuation for
  international travelers

• Travel
• Advisory Knowledge Base
• Books Trip Handles Service Issues
• Provides Reporting
• HR/Legal
• Focus on expats
• Responsible Employees
• Policy procedures
• Corporate Insurance Programs

8
Company Planning

• Your program must include
• Evaluating the risk
• Setting an acceptable level of risk
• Knowing how to Mitigate the risk
• Monitoring the situation
• Education and Communication
• Responding

9
Travel Management is

• A continuous process not an event

10
Traveler Safety Continuum

• Pre-Trip
• Crisis management plans
• Policy/ Compliance
• Enterprise Communication

• Access to Intelligence
• Travelers
• Management (push)
• Assess risks / Set ratings
• Pre-trip (pull)
• During travel

• Training
• All Employees
• Management team
• Personal Protection
• Kidnapping Threat
• Country/Region specific

• Track Employees
• Employee profiles
• Automated and verified
• Real-time Alerting
• Communication options

• Hotline
• 24 x 7
• One Call
• Company-specific protocol
• Travel, security, health

• Security Service
• Executive protection
• Escorts
• Guards
• Evacuation

• Medical Service
• In-country, Western quality care
• Evacuation

11
Supplier Discussion

• Engage in open discussion with your suppliers
• Share policy and procedures
• Set/agree on expectations
• Identify key go to contacts in crisis mode
• Communicate with travelers frequently

12
Working with your TMC

• Review Plan, Policy and requirements
• What kind of reporting capabilities does your TMC
  have?
• Pre Trip
• Destination specific, flight, airline, hotel
• Traveler specific
• Real time/other
• Who is traveling to high risk destinations
• Intelligence reporting

13
Third Party Protection

• Do you use a third party TRM solution?
• Traveler Tracking
• Reporting
• Pushed alerts
• On going real time intelligence
• Support Staff
• Live communication capability
• Emergency response for health and safety

14
Travel Suppliers

• Airlines
• Limitations under Force Majeure or Act of God
• No responsibility, liability or breach
• Good faith initiatives
• Waivers and favors
• Varies by Airline/Country

15
Travel Suppliers

• Rental Cars
• Disaster recovery plans
• Limited to corporate level may vary by location
• Existing customers with cars
• Generally liberal policies
• Travelers Able to keep cars
• Waive mileage, one ways and drop off charges
• Existing reservations without cars
• Hold cars for corp. accounts on file

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Travel Suppliers

• Hotels
• All in all, we try to stress taking care of
  people the way we would want our family taken
  care of," JHMarriott Corp.
• Most hotels take a Can Do attitude to
  accommodate guests in crisis situation
• Food, housing and safety is a priority

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Travel Suppliers

• Private Car Hire
• Chauffeur screening for drug alcohol
• Chauffeur vetting training
• Incident reporting real time
• Insurance standards
• Vehicle certification (QVM) for stretched
  vehicles
• Additional information available upon request

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Integrated Travel Risk Model
Incident Response
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Communications

• Set up regularly scheduled conference calls with
  travelers
• Travel Web site updates
• Email
• Cell phone/PDA
• Set up regularly scheduled calls with suppliers
  for updates
• Monitor ongoing intelligence
• Set realistic expectations for you and your
  travelers!

20
Corporate Focus on TRM

• Today only an estimated 40 of companies in the
  US have a Travel Risk management program in
  place!!!!!
• At a recent NBTA CTE training on TRM, 55
  attendees were polled as to how effective their
  program was on a scale from 1-5. Of that group,
  43 companies rated their programs as being 2 or
  under in effectiveness!!!

21
Developing an Emergency Response Plan

• Do you have a Travel Risk Management Plan?
• Has it been communicated?
• Who are the owners and what procedures are in
  place to activate it?
• Do you track your travelers?
• Do you have an intelligence resource for
  proactive risk mitigation?

22
Developing an Emergency Response Plan

• Do you have a process for Emergency Response?
• Does your company have a strong compliance
  policy?
• Are you communicating multi directionally?
  (Dont forget vendors and suppliers)
• Do you have a coordinated the plan with other
  departments? (Security, HR, Risk Management)
• Keep it simple! Keep it Current!

23
Developing an Emergency Response Plan

• Do your employees know what to do?
• Have you told your insurance company about your
  plan?

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• Safe Travels!