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Managing Fleet Risk

By: David Kahn

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Over 90% of all road accidents are caused by human error. While this is notable for everyone on the road, it is especially significant for employers supervising a fleet of drivers.

According to the Department of Labor, workers are more likely to die in motor vehicle crashes than in any other job-related incident. It is estimated that 2,000 road accident fatalities occur annually with vehicles being driven for work purposes. In addition, a survey of self-reported work-related injuries found that there are 77,000 injuries to employees every year as a result of "at work" road accidents.

Between the medical bills, emergency services, property damage, legal fees, and insurance claims, road accident fatalities and injuries cost employers an average of $277 per employee. And this does not take into account absenteeism (of which over 40% of injuries result in employees losing more than 10 days of work), lost productivity, or decreased morale and concentration.

So the question becomes, "How can an employer manage and, hopefully, decrease these incidents in their workplace?"

One solution to contain fleet risk would involve a tool that makes such data available as:

  • accident and incident trends;
  • performance assessments;
  • costs (both direct and indirect);
  • corresponding policies and procedures; and
  • reporting and investigation procedures.


This type of tool would pinpoint those drivers in an organization who have an excessive number of infractions, determine the mandatory resolution(s) of the organization specific to the violation, track the training mandated by the organization, and document the penalties and responses to the infraction. Also, since most fleet vehicle accidents occur within the first year of a driver's tenure with a company, this tool would help managers determine those drivers who are a greater liability and need to be terminated.

One such tool is The Human Equation's RiskCompass (due to be released in mid-March). The RiskCompass is an automated communications, performance, incentive and measurement tool that disseminates, evaluates, and reinforces (driver) behaviors, standards, systems and policies to produce the greatest economic benefit and optimal relationship between operational risk and enterprise value.

For an organization to effectively manage fleet risk, employers must have a means of monitoring and controlling their employees' driving and performance records. It is not sufficient to put these controls into effect after an incident occurs. Be proactive, be prepared.







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