Travel Risk Management Danny Chan
Transcript of Travel Risk Management Danny Chan
Travel Risk Management
Danny ChanDirector of Global Risk Assessment
iJET Intelligent Risk Systems
Aug 22, 2007
Travel Risk Issues… Growing
Perfect Storm Decade
Security: Terrorism
Jordan Hotel Bombing
2005 – 57 dead
London Tube Bombing
2005 – 56 dead
Mumbai Train Bombing
2006 – 200 dead
Hurricane Katrina (2005)• 1,836 deaths• $81.2 billion in damages
Mumbai Floods (2005)• More than 1,000 deaths• Over 700 flights cancelled or delayed
Tsunami (2004)• 229,866 persons lost• Includes 186,983 dead; 42,883 missing
Natural Disasters
Health: Infectious Diseases
● Newly Emerging Re-emerging/Resurging “Deliberately emerging” Adapted from Morens, DM., et. al. 2004. The Challenge of Emerging and Re-emerging Infectious Diseases. Nature 430:242-49.
“Behind the Headline” Threats
Weather & Environment Cultural Awareness Transportation System Financial Health Outbreaks and
Concerns
Communications Safety & Security Local Laws Entry/Exit
Requirements Language
“You are more likely to get struck by lightning than to be involved in a terrorist attack.”
Road Safety
1.2 million die – 40 million injured annually
65% increase in next 20 years
Varies with destination (per 100,000)
United States: Rate 15.0
China: Rate 19.0
Brazil: Rate 25.6
Denmark: Rate 9.5
Korea: Rate 21.9
Travel Manager’s Challenges
Higher level of care expected
Integration with Business Continuity Planning (BCP)
New systems and automation
Incident response and recovery
“Reduce T&E by 10%”
TRM: Legal Requirements
Duty of Care
Risk Disclosure
Standard of Care
What can you do?What can you do?
Response Time is Key
OptimalResponse
Preparedness Impacts Response Time
Planning Mitigation Communication Exercises/Drills
PREPAREDNESS
Travel Risk Management (TRM)
Travel Risk Management is a well defined process to identify risks, prepare travelers pre-trip, monitor threats, and respond to incidents as they arise.
Proactive
Planning
Reactive
TrainingIncident
Response24x7
Monitoring
Feedback
Travel Risk Management Benefits
More productive and prepared employees
Reduced number of costly “incidents”
Lower cost of response
Reduced corporate liability
Multidisciplinary Process
EMPLOYEE
HR/LEGAL
Focus on expatriates
Responsible for employees
Policy & procedures
Corporate insuranceprograms
SECURITY Risk assessment Crisis & evacuation plans Emergency contact info Up-to-date itinerary
TRAVEL Advisor and knowledge base Books trips and handles travel issues Provides reporting
MEDICAL Pre-trip health planning Immunizations Medical assistance & evacuations for international travelers
Training
Three levels: I. Travelers
II. Travel advisorsIII. Crisis management
team
Data Requirements
“Traveler Tracking”
Emergency Profiles Key Contact Information
Crisis Management Team
Safe Havens
Global View of Travelers
24x7 Monitoring
Consistent, automated
process
Real-time threat monitoring
“All Threat” analysis
Who is impacted?
Actionable intelligence
Travel Risk Management Process
Employeearranges
traveldirectly
Real-timemonitoring
during travel
Conduct pre-trip
briefings fortravelers
Designatedtravel agent
or website
Itinerary andprofile
databasemaintained
Appropriatemeasuresas events
dictate
Risk mitigationand
response plansprepared
Evaluateitinerary and
travel riskinformation
* Decision Point
*
**
Real-Time Notification
Where are you now?Where are you now?
Systematic Approach – Maturity Model
A maturity model provides Objective Assessment
Benchmarking Tool
Standardized Communication
Prioritization
Actionable Next Steps
Travel Risk Management Maturity Model
Reactive (1) Ad hoc. Few policies. Extremely challenging in the event of an emergency.
Basic travel risk management policies defined and documented. Primary focus on incident response.
Consistent execution of travel risk management processes.
Metrics collected and reviewed. Cross-organization support.
Program integrated throughout organization.
Defined (2)
Proactive (3)
Managed (4)
Optimized (5)TRM3
TRM3 - 10 Key Process Areas
Data Management
RiskAssess-ment
Policy/Procedures
Training
Notification
Communication
RiskDisclosure
RiskMitigat
ion
Risk Monitoring
Response
Overarching KPAs
Management KPAs
Infrastructure KPAs
Key Process Area Level 1 Level 2 Level 3 Level 4 Level 5
POLICY / PROCEDURE x
TRAINING xRISK ASSESSMENT xRISK DISCLOSURE xRISK MITIGATION xRISK MONITORING xRESPONSE xNOTIFICATION xDATA MANAGEMENT x
COMMUNICATION x
x
LEVEL
2
PLUS
6
Assess Your TRM3 Level
Survey Results by KPA50 Respondents
9
20
15
18
16
13
21
18
10
14
32
23
26
19
16
18
22
16
18
20
14
15
10
2
10
11
12
8
7
8
16
16
3
6
2
2
5
2
7
3
6
3
6
0
2
0
4
0
2
0
2
0
1
0
0
POLICY/PROCEDURES
TRAINING
RISK ASSESSMENT
RISK DISCLOSURE
RISK MITIGATION
RISK MONITORING
RESPONSE
NOTIFICATION
DATA MANAGEMENT
COMMUNICATION
OVERALL TRM LEVEL
Level 1 Level 2 Level 3 Level 4 Level 5
Aggregate Survey Results50 Respondents
TRM3 Survey Results
0 1 2 3 4 5
POLICY/PROCEDURES
TRAINING
RISK ASSESSMENT
RISK DISCLOSURE
RISK MITIGATION
RISK MONITORING
RESPONSE
NOTIFICATION
DATA MANAGEMENT
COMMUNICATION
Level
Summary
Effective Travel Risk Management Is multidisciplinary
Requires training Includes intelligence
& communication Relies on planning to minimize
impact
Is measured and benchmarked