How to. "Rapid ensures safe and efficient logistics
Risk management in the world of international road transport is a key aspect where every detail counts. The company "Rapidis not just a conduit between points A and B, but your reliable partner in logistics. We strive to provide our customers not only with high-quality services, but also with useful information to help them better navigate the complexities of international freight transport. In our articles, we share relevant knowledge and industry best practices to keep you one step ahead in the ever-changing world of global logistics, with a particular focus on security , which is the subject of this article.
Risk management in transport companies.
Today, the head of the labour protection and road safety service shares his experience in risk management at a transport company JSC "KVK "Rapid" V. V. Mikhnov. Volodymyr Volodymyrovych has been working on risk research at the enterprise for more than 10 years. During this time, he has gained invaluable experience that can be useful to his colleagues.The risk study was carried out on the basis of Kyiv-based PJSC KPK Rapid, which has been operating in the international freight market for over 25 years. In December 2015, the company was certified according to the ISO 39001:2012 standard - Road Traffic Safety Management System. The standard is aimed at reducing and ultimately eliminating the risks of serious injuries and fatalities associated with road traffic accidents. The conceptual study of risk management at our enterprise has not yet been completed. The absence of a clear theoretical and methodological research framework hinders the course of the analysed processes and reduces their efficiency.
Key stages of risk management
Currently, there is only one approach to risk management, which includes the following stages:
- risk analysis;
- risk control;
- risk financing.
Of course, this approach is subject to various modifications, but the essence of the formulation remains quite homogeneous. Risk management includes risk identification and risk assessment. Definition is the basis of risk management - you cannot start working with a risk if you do not know what it is. Risk assessment combines the evaluation of those risks that have already been identified in terms of their probability and severity. Risk control includes measures to reduce its likelihood, eliminate or try to avoid it, and reduce the severity of the risk if it occurs. Risk financing. In this case, the organisation is faced with the question of how to cover the financial loss from risks that turn out to be unacceptable, not controlled at an acceptable level.
The main purpose of risk financing
is to distribute its value over time in such a way as to mitigate the financial pressure that the organisation will face in the event of serious losses. High efficiency of management of a road transport enterprise, its flexibility, manoeuvrability, and competitiveness with other similar enterprises is achieved to a large extent by increasing the degree of self-organisation in the process of risk management. It is necessary to constantly take into account the possible consequences of risk management, to refine the assessment of possible losses as the uncertainty of the situation is revealed; not to take big risks to achieve small profits; to seek and use known and proven ways of risk analysis and not to stop at the first solution found, to continue to search for other ways that are not worse than the original one in terms of expected results. The practical significance of the work and, as a result, the road safety risk assessment map is to use the identified risks to reduce and, ultimately, eliminate the occurrence of serious injuries and fatalities associated with road traffic accidents.
Risk assessment and management
In our research risk R is determined by the formula: R = P×S, where: S is the severity of the consequences of exposure to hazardous factors; P is the probability of the hazardous factor occurring. For each identified hazard (risk), the possible severity of the consequences is assessed. To determine the severity of the consequences, all available information on possible accidents and road accidents caused by hazards collected from the personnel of transport companies and Rapid in particular is used. Information on accidents and road traffic accidents is collected and systematised in accordance with the requirements of the Instruction on processing police materials on administrative offences in the field of road traffic safety recorded not in automatic mode, approved by Order of the Ministry of Internal Affairs of Ukraine No. 1395 dated 07.11.2015.
Risk monitoring and analysis
This needs to be explained. The company continuously monitors and analyses the reports drawn up against the company's drivers in the event of a traffic violation or a road accident. For each hazard identified, the probability of the hazard occurring is estimated. To identify this data, we again use the method of collecting information by interviewing drivers (the company employs more than 120 people) after each trip and analysing accident reports, including data on accidents and accidents caused by hazardous factors.
Risk assessment and risk management.
Risk assessment is carried out in accordance with Table 2. Based on the table, we establish the category of risks:
1–4 points – acceptable (insignificant) risk;
5–9 points – acceptable risk;
10–12 points – medium risk;
14–20 points – serious risk;
21–49 points – unacceptable (inadmissible) risk.
If it is determined that the risk falls into the "unacceptable" category, then work is prohibited until the exposure to the hazardous factor is eliminated or its impact is reduced to at least the "serious" risk category. If the risk falls into the "serious" category, then the work is carried out only after checking all the prescribed safety measures and implementing the preventive actions established in the risk assessment map. When a risk of the "medium" category is detected, the control of the implementation of preventive actions is carried out in accordance with the requirements of the labor protection and traffic safety management system. If the risk falls into the "acceptable" category, then checks are carried out daily. The results of the risk assessment are used in the implementation and control of the foreseen preventive actions. In the event of accidents (road accidents), the manager identifies risks and organizes risk assessment in the field of labor protection and road safety, using the risk identification and assessment protocol.
Practical application of risk management
In the course of the study, we considered five types of risks.
1. Risks related to the technical condition of the car: breakdown of the car on the road, burst tire, uneven wear of brake pads, faulty spark plugs, etc.
2. Risks related to the environment: poor condition of the road surface, maneuvering of the driver in a limited space, hitting an obstacle, exposure to sudden temperature changes.
3. Risks related to materials and cargo: cargo falling, vehicle overturning.
4. Risks related to the human factor: violation of the work and rest regime by the driver, deviation of the functional state from the norm - anger, fear, stress; hitting a pedestrian, cyclist, etc.; failure to maintain distance, overtaking.
5. Risks associated with the technology (method): stoppage of nodes and aggregates.
Identifying and assessing risks
For each of the risks, a dangerous factor, the consequences of the risk were identified, effective risk prevention measures were determined, and, of course, a person responsible for the implementation of prevention measures and a person who should monitor the performance of the work was appointed. The same table shows the level of risk before and after preventive actions. All these data are listed in a consolidated table, extracts from which are given below.
The table can be viewed in its entirety in the next issue of the "Bulletin of AsMAP of Ukraine" magazine. For example, there is such a dangerous factor as expired, faulty fire extinguishers and ADR kits (the risk associated with the technical vehicle.
The consequences of such a dangerous factor can be the destruction of the car and the injury of road users.) The probability of the occurrence of such a risk is estimated at 2 points, the severity of the consequences - at 6 points, based on the formula R = P x S, the risk level is estimated at 12 points (average risk) . Effective measures to prevent such a risk are elementary (but so important) compliance with the service life of components. Or another example, from the same category of risks, is faulty spark plugs in a car.
Consequences - fuel not burning, loss of engine power, uneven engine operation, road accident. In this case, the probability of the occurrence of such a risk is estimated at 4 points, the seriousness of the consequences - at 5 points, the level of risk is estimated at 20 points (serious risk). In this case, the mechanic, the driver and the manager of the service center must strictly follow the procedure for checking the technical condition of the car.
We hope that our experience in risk management in the transport industry will help our colleagues and contribute to reducing the level of injuries on our roads.
For the practical application of the experience described above, you can use a summary table "Risks at the driver's workplace".
V.V. Mikhnov, head of the labor protection and traffic safety service of KVK RAPID JSC
