Six Key Areas to Include in a Travel Risk Management Policy
A Travel Risk Management (TRM) policy is centric to business travel. It outlines the high-level safety and security aims for travel and overarching guidance regarding how that is to occur. It’s not uncommon for this policy to be embedded within a Travel and Expense policy, though best practice is to have it standalone. Furthermore, if there are other Risk Management policies for the organization, this one should be consistent. To that end, organizations should look at the safety and security of individuals regardless of where they’re working and have policies like this all consistent with that objective.
A TRM policy serves two high-level purposes. (1) It addresses an organization’s travel-related duty of care concerns—seeking to protect the traveler, and (2) it establishes an individual’s duty of loyalty—those matters that help protect the organization from loss.
Here are six key issues that need to be addressed within a Travel Risk Management policy.
Purpose and Scope of the Program
Hopefully, a Travel and Expense policy outlines why the organization travels and what travel seeks to accomplish. Therefore, a TRM policy should outline how travel will occur in a manner that mitigates risk. Further, the policy should outline who must adhere to it and under what circumstances it applies.
Outlines an Owner of the Policy/Program
While the program will be managed across a host of functions within the organization and externally, the policy should have an owner (i.e., a department or business unit that is responsible for it). This will help ensure that clear lines of authority and communication are established within the program.
Establishes Travel Risk Assessment Processes
Travel risks should be assessed as a general programmatic function, as well as for trips specifically. For example, all traveled destinations should be reviewed on a periodic basis. This could be accomplished by an organizational risk profile that outlines all destinations of travel annually. Individual trips should receive pre-trip assessments for any real-time or recent changes in risk. The policy should outline this. Further, it should address what locations may or may not be traveled to because of the risk level.
Many organizations have a third-party provider that defines geographic risk, but many governments have geographic risks outlined, as well. A benefit of using governmental guidance is its authoritative nature and changes in risk can have certain impacts on insurance policies.
Risk Management
The policy should outline that the organization will implement measures to avoid, mitigate, and/or respond to risks, as appropriate. Some considerations should receive specific mention. Requirements for personal travel or leave—commonly known as “bleisure”, multiple personnel traveling on the same means of transportation, pre-travel authorizations, like medical requirements and visas, as well as high-risk travel requirements should all be addressed.
Other items to outline are whether insurance coverage is available and how policy exceptions are to be addressed. For example, if someone cannot use the approved booking tool, what alternatives are available.
Reporting
If there’s a separate policy for reporting safety and security concerns, that should be referenced. However, it’s common for organizations to have specific reporting mechanisms for travel issues. These should be outlined, as well as what circumstances should be reported.
Supporting Policies
Because travel and TRM are supportive of several other initiatives within an organization, any applicable supporting policies should be outlined for ease of reference. This might include information security, reporting, travel policy, social media policies, code of conduct, and more.
General Considerations
Of course, a policy on a shelf does no one any good. The policy should be communicated to all travelers and acknowledged prior to travel. A TRM policy does not need to be long, in fact, concise policies are usually more productive in support of strategic goals. Supporting Plans and Procedures can include the details regarding how the aims of the policy are to be accomplished and implemented.
Conclusion
A Travel Risk Management policy is centric to a travel program. Addressing these six areas within a policy help ensure an organization is addressing its Duty of Care and providing an efficient means for travelers to fulfill their Duty of Loyalty. What is more, it can help accomplish organizational goals through travel.
