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Risk management in transport companies

In the world of international road transport, where every detail is important, the company "Rapid" acts not only as a conductor between points A and B, but as your reliable partner in logistics. We strive to provide our customers not only with high-quality services, but also with useful information that helps them better navigate the complexities of international freight transportation. In our articles, we share current knowledge and industry best practices to keep you one step ahead in the changing world of global logistics, with a particular focus on security, which is discussed in this article.

Risk management in transport companies. Today, the head of the labor protection and road safety service shares his experience in risk management at a transport enterprise JSC "KVK "Rapid" V. V. Mikhnov. Volodymyr Volodymyrovych has devoted more than 10 years to the work of risk research at the enterprise. During this time, invaluable experiences appeared that can be useful to colleagues. The work on risk research was carried out on the basis of Kyiv PJSC KPC Rapid, which has been operating in the market of international cargo transportation for more than 25 years. In December 2015, the enterprise was certified according to the ISO 39001:2012 standard - road safety management system. The standard aims to reduce and ultimately eliminate the risk of serious injury and death associated with traffic accidents. The conceptual study of the problem of risk management at our company has not yet been completed. The lack of a clear theoretical and methodological base of research complicates the course of the analyzed processes and reduces their effectiveness.

Currently, there is only one approach to risk management, which includes the following stages:

  • risk analysis;
  • risk control;
  • risk financing.

Of course, this approach allows for various modifications, but the essence of the production remains fairly homogeneous. Risk analysis includes risk identification and assessment. Definition is the basis of risk management - you can't start working with a risk if you don't know what it is. Risk assessment combines the assessment of those risks that have already been determined from the point of view of their probability and from the point of view of their seriousness. Risk control includes measures aimed at reducing its probability, eliminating or trying to avoid it, as well as reducing the severity of the risk in the event of its occurrence. Risk financing. In this case, the organization faces the question of how to cover the financial loss from risks that are unacceptable, not controlled at an acceptable level.

The main purpose of risk financing is to spread its value over time in such a way as to mitigate the financial pressure that the organization will be under in the event of serious losses. The high efficiency of the management of a motor vehicle enterprise, its flexibility, maneuverability, competitiveness with other similar enterprises is achieved to a large extent by increasing the degree of self-organization in the process of risk management. It is necessary to constantly take into account the possible consequences of the risk, to clarify the assessment of possible losses as the uncertainty of the situation unfolds; not to take big risks to achieve a small profit; to look for and use known and proven ways of risk analysis and not to stop at the first solution found, to continue searching for other ways that are not worse than the original one in terms of expected results. The practical value of the work and as a result of the road safety risk assessment map is to use the identified risks to reduce and ultimately eliminate the occurrence of serious injuries and deaths related to road traffic accidents.

In our research, the risk R is determined by the formula: R = P×S, where: S is the severity of the consequences of the effects of dangerous factors; P is the probability of occurrence of a dangerous factor. For each detected dangerous factor (risk), the possible seriousness of the consequences is assessed. To determine the seriousness of the consequences, all available information about possible accidents, road accidents caused by dangerous factors, collected from the personnel of transport companies and from the company "Rapid" in particular, is used. Accumulation and systematization of information about accidents and traffic accidents is carried out in accordance with the requirements of the Instructions for the preparation of police materials on administrative offenses in the field of road safety, recorded not in automatic mode, approved by the order of the Ministry of Internal Affairs of Ukraine dated 07.11.2015 No. 1395.

It should be explained here that the enterprise constantly monitors and analyzes the protocols drawn up for the enterprise's drivers in case of violation of traffic rules or the occurrence of a traffic accident. For each detection of a dangerous factor, the probability of occurrence of a dangerous factor is estimated. To identify these data, the method of collecting information is again used by interviewing drivers (and the company employs more than 120 people) after each flight and analyzing traffic accident protocols, including data on accidents, traffic accidents caused by dangerous 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 implementation. In the research process, 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.

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

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