What is the potential cost to companies that do not have a corporate travel risk assessment and management policy in place or do not enforce policy strictly?

The very real cost to companies that do not have a corporate travel risk assessment and management policy or implemented management system ranges from thousands to millions of dollars in actual or potential losses each year. The problem is that finance and travel managers tend to look at isolated or incomplete figures. If the ‘whole of travel’ financial process was reviewed, they would see that they are already losing money due to ineffective or inefficient travel health, safety, security and risk management systems. Arriving at an airport 3 hours before departure, when you don’t have to is a economic loss to a business. Choosing a flight or hotel that saves you a few hundred dollars in cost but results in hours of additional travel or lost productivity by employees, is an economic loss for businesses. Surveys and analysis has demonstrated that money or investment in prevention of incidents and loss is significantly more valuable and cheaper than spending after the fact. As much as 8:1 in real terms. This is all exclusive of legal fees, fines, insurance claims and numerous other factors that will or can add to the total if not already part of a company’s travel risk management metric/s.

 

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