Travel Risk Management Danny Chan

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Travel Risk Management Danny Chan

  1. 1. Travel Risk Management Danny Chan Director of Global Risk Assessment iJET Intelligent Risk Systems Aug 22, 2007
  2. 2. Travel Risk Issues… Growing
  3. 3. Perfect Storm Decade
  4. 4. Security: Terrorism Jordan Hotel Bombing 2005 – 57 dead London Tube Bombing 2005 – 56 dead Mumbai Train Bombing 2006 – 200 dead
  5. 5. Natural Disasters <ul><li>Tsunami (2004) </li></ul><ul><li>229,866 persons lost </li></ul><ul><li>Includes 186,983 dead; 42,883 missing </li></ul><ul><li>Mumbai Floods (2005) </li></ul><ul><li>More than 1,000 deaths </li></ul><ul><li>Over 700 flights cancelled or delayed </li></ul><ul><li>Hurricane Katrina (2005) </li></ul><ul><li>1,836 deaths </li></ul><ul><li>$81.2 billion in damages </li></ul>
  6. 6. 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 .
  7. 7. “ Behind the Headline” Threats <ul><li>Weather & Environment </li></ul><ul><li>Cultural Awareness </li></ul><ul><li>Transportation System </li></ul><ul><li>Financial </li></ul><ul><li>Health Outbreaks and Concerns </li></ul><ul><li>Communications </li></ul><ul><li>Safety & Security </li></ul><ul><li>Local Laws </li></ul><ul><li>Entry/Exit Requirements </li></ul><ul><li>Language </li></ul>“ You are more likely to get struck by lightning than to be involved in a terrorist attack.”
  8. 8. Road Safety <ul><li>1.2 million die – 40 million injured annually </li></ul><ul><li>65% increase in next 20 years </li></ul><ul><li>Varies with destination (per 100,000) </li></ul><ul><li>United States: Rate 15.0 </li></ul><ul><li>China: Rate 19.0 </li></ul><ul><li>Brazil: Rate 25.6 </li></ul><ul><li>Denmark: Rate 9.5 </li></ul><ul><li>Korea: Rate 21.9 </li></ul>
  9. 9. Travel Manager’s Challenges <ul><li>Higher level of care expected </li></ul><ul><li>Integration with Business Continuity Planning (BCP) </li></ul><ul><li>New systems and automation </li></ul><ul><li>Incident response and recovery </li></ul>“ Reduce T&E by 10%”
  10. 10. TRM: Legal Requirements <ul><li>Duty of Care </li></ul><ul><li>Risk Disclosure </li></ul><ul><li>Standard of Care </li></ul>
  11. 11. <ul><li>What can you do? </li></ul>
  12. 12. Response Time is Key Optimal Response
  13. 13. Preparedness Impacts Response Time <ul><li>Planning </li></ul><ul><li>Mitigation </li></ul><ul><li>Communication </li></ul><ul><li>Exercises/Drills </li></ul>PREPAREDNESS
  14. 14. Travel Risk Management (TRM) <ul><li>Travel Risk Management is a well defined process to identify risks, prepare travelers pre-trip, monitor threats, and respond to incidents as they arise. </li></ul>Proactive Planning Reactive Training Incident Response 24x7 Monitoring Feedback
  15. 15. Travel Risk Management Benefits <ul><ul><li>More productive and prepared employees </li></ul></ul><ul><ul><li>Reduced number of costly “incidents” </li></ul></ul><ul><ul><li>Lower cost of response </li></ul></ul><ul><ul><li>Reduced corporate liability </li></ul></ul>
  16. 16. Multidisciplinary Process EMPLOYEE <ul><li>HR/LEGAL </li></ul><ul><li>Focus on expatriates </li></ul><ul><li>Responsible for employees </li></ul><ul><li>Policy & procedures </li></ul><ul><li>Corporate insurance programs </li></ul><ul><li>SECURITY </li></ul><ul><li>Risk assessment </li></ul><ul><li>Crisis & evacuation plans </li></ul><ul><li>Emergency contact info </li></ul><ul><li>Up-to-date itinerary </li></ul><ul><li>TRAVEL </li></ul><ul><li>Advisor and knowledge base </li></ul><ul><li>Books trips and handles travel issues </li></ul><ul><li>Provides reporting </li></ul><ul><li>MEDICAL </li></ul><ul><li>Pre-trip health planning </li></ul><ul><li>Immunizations </li></ul><ul><li>Medical assistance & evacuations for international travelers </li></ul>
  17. 17. Training <ul><li>Three levels: </li></ul><ul><li>Travelers </li></ul><ul><li>Travel advisors </li></ul><ul><li>Crisis management team </li></ul>
  18. 18. Data Requirements <ul><li>“ Traveler Tracking” </li></ul><ul><li>Emergency Profiles </li></ul><ul><li>Key Contact Information </li></ul><ul><li>Crisis Management Team </li></ul><ul><li>Safe Havens </li></ul>
  19. 19. Global View of Travelers
  20. 20. 24x7 Monitoring <ul><li>Consistent, automated process </li></ul><ul><li>Real-time threat monitoring </li></ul><ul><li>“ All Threat” analysis </li></ul><ul><li>Who is impacted? </li></ul><ul><li>Actionable intelligence </li></ul>
  21. 21. Travel Risk Management Process Employee arranges travel directly Real-time monitoring during travel Conduct pre-trip briefings for travelers Designated travel agent or website Itinerary and profile database maintained Appropriate measures as events dictate Risk mitigation and response plans prepared Evaluate itinerary and travel risk information * Decision Point * * *
  22. 22. Real-Time Notification
  23. 23. <ul><li>Where are you now? </li></ul>
  24. 24. Systematic Approach – Maturity Model <ul><li>A maturity model provides </li></ul><ul><li>Objective Assessment </li></ul><ul><li>Benchmarking Tool </li></ul><ul><li>Standardized Communication </li></ul><ul><li>Prioritization </li></ul><ul><li>Actionable Next Steps </li></ul>
  25. 25. 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
  26. 26. TRM3 - 10 Key Process Areas Data Management Risk Assess-ment Policy/Procedures Training Notification Communication Risk Disclosure Risk Mitigation Risk Monitoring Response Overarching KPAs Management KPAs Infrastructure KPAs
  27. 27. LEVEL 2 PLUS 6 Assess Your TRM3 Level x x COMMUNICATION x DATA MANAGEMENT x NOTIFICATION x RESPONSE x RISK MONITORING x RISK MITIGATION x RISK DISCLOSURE x RISK ASSESSMENT x TRAINING x POLICY / PROCEDURE Level 5 Level 4 Level 3 Level 2 Level 1 Key Process Area
  28. 28. Survey Results by KPA 50 Respondents
  29. 29. Aggregate Survey Results 50 Respondents
  30. 30. Summary <ul><li>Effective Travel Risk Management </li></ul><ul><li>Is multidisciplinary </li></ul><ul><li>Requires training </li></ul><ul><li>Includes intelligence & communication </li></ul><ul><li>Relies on planning to minimize impact </li></ul><ul><li>Is measured and benchmarked </li></ul>
  31. 31. Thank You <ul><li>Danny Chan </li></ul><ul><li>[email_address] </li></ul>

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