Travel Risk Management: Are You Ready for a Crisis?

Introduction

If you know that business travel is not without its risk and the potential for crisis, then you need to read this article. In this article we are going to talk about the management and containment of crisis as it relates to travellers and travel managers. The objective of this article is to share with you the collective knowledge on managing crisis and significantly improve your ability to identify and manage a crisis but also improve your business travel efficiency.

During this article I am going to discuss travel risk myths, crisis management, plans and options so you can immediately compare or improve your own travel risk management system for your travellers or travel management department.

Crisis by definition is something you didn’t have a plan for or something in which you are unprepared. Additionally, it can be a series of events that in concert create a crisis. Events or issues that occur, to which you have a plan and strategy, is merely an incident.

Crisis Management/Leadership

The first thing is to clarify what is the difference between crisis management and leadership. More importantly, which one is the more important?

Crisis management relates to the response to event/s that threaten your business, travellers or travel activity. The event leads and you follow with plans, decisions and actions.

Crisis leadership, on the other hand, is more about getting ahead of the events and issues to prevent, management and even contain the impact to your business or business travel activities. While management is a portion of the leadership demand, your actions and involvement lead the outcomes rather than a more passive wait and act approach with pure crisis management.

Crisis leadership is the less practiced of the two, but the most significant in terms of results and reduction in risk and impact. If you take nothing else away from this session, it should be that your focus should always be on Crisis Leadership, not crisis management.

Myths

There are many myths and half-truths about crisis, disruption and threats within the travel management sector. Much of this misinformation has originated from travellers themselves, media, travel managers, friends and family or so called “experts”.

For example, many travellers and planners are focused on terrorism. The reality is, you have a very, very small chance of being exposed or affected directly by a terrorist act. It doesn’t mean you should discount it as a threat altogether but it shouldn’t dominate your plans or processes if not a proportional threat to you and your travellers. Conversely, almost everyone overlooks motor vehicle accidents. Yet, they happen far more frequently, can have devastating affect on travellers and are the least common plan contained within company travel management departments.

Travellers and travel managers must be prepared, educated and have supporting plans for any event that has the potential to delay, disrupt or harm the traveller or the business.

The most common events include:

• Motor vehicle accidents
• Airline delays or cancellations
• Airport closures or disruptions
• Transport delays
• Bad weather
• Sickness and illness
• Petty crimes
• Hotel fires
• Political disputes
• Demonstrations and gatherings

Motor vehicle accidents within your own country can be stressful and dangerous but on an overseas business trip they can be 100 times more challenging and dangerous. Consider language, local authorities, first responder, standard of healthcare, families and support in your plans and initial response.

Airline delays and cancelations. They happen all the time but they are not just an administrative response. You may need to consider safety, transport, quarantines, security threats, government response and wide spread suspension of services to overcome the issue and maintain safety of your travellers.

Airport closures or disruptions. Failed systems, electrical problems, threats, weather, construction and so on can prevent you even getting to your flight. Consider the impact this has on your plans and how your traveller will need to possibly extend stay, move to alternate airport or find accommodation.

All other transport delays and disruptions can create crisis when everyone no longer has access to trains, buses, key roads or even water transport. Have a plan and add it to your immediate decision making process.

2010 and the commencement of 2011 has seen travel of all kind affected by natural disasters and weather. Weather and natural forces have and always will impact travellers. It does and will continue to occur. It is highly concerning how unprepared travellers and companies are for volcanic eruptions, typhoons, floods, earthquakes and general bad weather.

People get sick or feel unwell all the time. This is compounded significantly when travelling. Standard of care, language, access, cost, complications, choice and numerous other location based concerns will determine just how at risk your traveller will be. A single, “one-size-fits-all” plan or solution will fail and you need to be aware of these issues immediately with the onset of an affected traveller.

Crimes are a reality of any city in the world. However, travellers seldom know the risks and may be preyed upon by thieves and criminals. The loss of phones, money, and other items may seem less likely to constitute a crisis but when overseas, injured or not able to speak the local language, all these simple events can create a major concern for your business travellers. This can be amplified if you have a senior executive or a group of executives affected.

Hotel fires and emergencies are more common than most people think. The immediate threat to an individual is fairly obvious but the impact that the lack of accommodation choices can create from the temporary or permanent closure of a hotel is a much bigger concern. This was graphically displayed during the Mumbai terror attacks (as extra ordinary as the event was) when most of the best/preferred hotels were now unavailable in a key part of the city. This removed thousands of rooms for business travellers and forced many to cancel or significantly alter travel plans just because there were a lack of suitable accommodation options, whether affected by the events or not.

Any event that alters the political stability of a location or region or results in thousands of people out on the streets constitutes a risk to your business travel plans and travellers. They can happen spontaneously or take time to develop. The immediate dangers and the ongoing disruption can have a major impact on your business or traveller.

Again, plans, preparation and thought to these issues will greatly reduce the impact and improve your business too.

Now that we have removed the most common misconceptions, let’s focus on the management and containment of a crisis.

Crisis management

The key to successful crisis management is planning, training, plans, decision-making and adaptability.

Planning

Given the issues previously covered, you now have a better insight into how and why planning is important to remove the more emotive issues from the realities of real business threats and events.

Planning needs to include multiple departments and perspectives to be truly effective. One of the greatest weaknesses I see regularly is that departments continue to manage the risk of travel through multiple departments with multiple plans. The input and plan needs to be unified. Depending on the company, it may include travel managers, security, HR, finance, marketing, C-suite and operations.

All plans need to be continuously updated, location specific, aide in the decision-making process and modular enough have elements extracted quickly and effectively. Modern, effective plans embrace technology. Rapid, efficient access to information, along with running updates is the hallmarks of a modern sustainable plan, regardless of the size of the issue or the company.

Training

No plan is effective without training and rehearsal. Training, whether through simulations, drills or live, full-scale exercises are vital to the success of any crisis situation. Such sessions don’t need to be boring or overly complicated but must include travel managers and planners along with the more common crisis and emergency managers.

Increasingly, training is becoming a mandatory requirement for key positions and roles. It can be linked to internal HR processes but must support the business objectives and measurable on how it reduces the risk to people, business, brand and travel demands.

While the plan creates the framework for crisis decision-making, teams can learn a lot from training on how and when to adapt their plans. How the team interacts, strength, weakness, leaders, followers, limitations, tools and many more planned and surprise outcomes are possible with effective training.

Adaptations

No plan will completely script all the events, issues and options available for every plausible travel delay, disruption or crisis. You need to be able to adapt and evolve from the original plan and intention. This can only be achieved with planning, plans and training.

Solutions So what do I need in my plan?

Here is the best travel risk management content for your plan:

• Objective(the single most important part of any travel policy)
• References
• Scope
• Legal
• Insurance
• Finance
• Reimbursements
• Limits
• Priority/precedence
• Management Authority/ies
• Situations

Procedure will likely cover:

• Planning
• Resources
• Tools
• Authority
• Executive Decision making
• Limits
• Budgets
• Training
• Compliance
• Pre-trip admin
• Providers
• Booking
• Accommodation
• Airlines
• Ground Transport
• Safety and Security
• Health and wellness
• Emergency
• SOP/Actions on
• Insurance
• Travel Monitoring /tracking
• Reporting
• HR
• Entitlements
• Threat/risk levels
• Shelter in Place
• Relocations/evacuations
• Management Authority
• Review

Don’t forget your risk assessment will need to include the key elements:

• Traveller
• Location
• Activity
• Support/Resources
• Response

Conclusion

There you have it. Now you know what is required, how do you rate your current plans and preparedness?

You now have the most relevant issues and areas to focus upon that will reduce or contain the majority of incidents you may face your travellers will be safer, your business more profitable and your costs will be contained by reducing your exposure to expensive crisis events.

We have debunked popular travel threat myths, identified the difference between crisis management and leadership, outlined plans and options so you can immediately compare or improve your own travel risk management system for your travellers or travel management department. Review your plans and make the immediate improvements.

You will know when you have an effective crisis management system for your travel risk management strategy when you have little to no crisis.

You may have numerous events or incidents but you have a plan, you’re prepared and your decision making is fast and consistent. If not, you have failed and you will run from crisis to crisis on a regular basis.