Travel Risk Strategies for Smaller Organizations

by Tamara Mahkovec of Safe Harbors Business Travel

Developing a comprehensive travel risk management program can be a significant undertaking for any organization. Smaller companies, in particular, may face challenges due to limited resources or budget constraints. As a result, they often choose to address issues reactively rather than implementing a proactive program. 

 Regardless of the organization’s size, it is always advisable to have a plan in place should issues arise during travel. The first step in putting together a program is understanding your organization’s travel risk needs. Assess where your travelers are located and identify their frequent travel destinations.  From there, you can determine the risks involved. If your organization frequently travels to high-risk locations, implementing a travel risk program is essential.  

 Securing company buy-in is key to establishing a program.  Once the foundation is in place, seek support and approval from key stakeholders, including senior management, risk team, HR, legal teams, as well as your travel department or travel program owner.  

Key Components to a Travel Risk Management Program 

Consolidated Travel Program 

 The foundation of an effective travel risk management program lies in the consolidation of your travel operations. Maintaining real-time awareness of traveler locations enables proactive monitoring of potential risks and the ability to identify affected individuals swiftly. In the event of a risk emerging in a specific area, you should be equipped to promptly communicate with all travelers and accurately assess the situation. 

Travel Policy 

Develop a comprehensive travel policy that establishes clear expectations and guidelines to support employees in making informed travel decisions. The policy should include pre-trip monitoring, such as notifications, approvals, or alerts, to ensure compliance and preparedness. Consider incorporating an additional level of approval for employees planning travel to high-risk destinations. Proactively monitoring travel arrangements prior to departure ensures travelers are adequately prepared and aligned with company directives. 

Traveler Tracking 

How does your organization currently track employees during business travel? Traveler tracking can be streamlined through reporting services provided by your designated Travel Management Company (TMC). Many TMCs include basic traveler tracking for flights and accommodations at little to no additional cost. Larger TMCs often offer more advanced duty-of-care solutions, featuring comprehensive dashboards that display all active travelers and enable direct messaging within the platform. These enhanced solutions are typically available for a nominal fee, along with a small per-transaction cost, providing greater visibility and communication capabilities to support employee safety and compliance.

Disaster Plan 

Organizations should create a detailed disaster plan tailored to business travel to minimize risks and protect employees during emergencies. The plan should address potential hazards related to travel destinations, employee whereabouts, and the purpose of their trips. Essential elements should include clear communication strategies, evacuation procedures, medical support considerations, employee safety measures, designated roles and responsibilities, access to emergency supplies, and strategies for quickly restoring critical business operations following a disruption. 

Emergency Communication Plan 

Organizations should establish a well-defined communication plan specifically for travel emergencies. This plan should identify key points of contact, such as HR and Risk Management, and outline a system for promptly notifying family members and the traveler’s supervisor. It should designate individuals responsible for leading the response team, specify prearranged communication channels and pathways, and include notification or alert templates tailored to various potential scenarios. 

Insurance 

Organizations of all sizes should have a Business Travel Accident Insurance Policy in place. Companies with employees who travel for work have a duty of care to protect them, and such a policy can help fulfill this responsibility. Based on the specific risks employees may face, the policy should ideally include travel assistance services. For international trips, it is crucial to include out-of-country medical benefits to provide sufficient medical coverage for employees traveling abroad. For travel to high-risk regions, adding war-risk coverage is essential. Additionally, some organizations choose to offer extra coverage for executives, such as Business and Pleasure insurance, which extends to personal leisure travel. 

Final Thoughts

Implementing a Travel Risk Management Program is a vital step for any organization to ensure the safety and well-being of its employees while traveling. While the process may seem challenging, especially for smaller organizations with limited resources, a proactive approach can mitigate risks, enhance preparedness, and foster confidence among employees and stakeholders. 

By consolidating travel operations, establishing a clear travel policy, implementing traveler tracking, and developing a robust disaster plan with emergency communication protocols, organizations can effectively manage travel-related risks. Ensuring adequate insurance coverage tailored to the organization's specific travel needs is a critical component of fulfilling the duty of care. 

A well-structured program not only safeguards employees but also protects the organization's reputation and operational continuity. With the support of senior management and collaboration across departments, any organization can create a travel risk management program that aligns with its goals and resources, providing peace of mind for both the business and its travelers.