Fleet Risk Management: Secrets Revealed To Make Your Fleet Thrive

Are you ready to discover the hidden ingredient that separates successful fleets from the rest? Successfully identify, assess, and mitigate potential issues in your commercial fleet that can impact your organisation's goals and objectives with fleet risk management.

How can risk management achieve all this? Let’s get started.

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What makes a fleet safe? — Risk management

You’ve probably heard of the saying "better safe than sorry". It’s the principle behind risk management. Fleet risk management is the secret weapon companies use to ensure their drivers, other employees, and vehicles are always safe and secure.

We know life happens, so having a backup plan is important to mitigate those risks. This is where your plan B or risk management comes in. This hidden gem helps you foresee and prevent bad things from happening, like accidents, breakdowns, or theft. But effective risk management isn't just about avoiding problems, it's also about creating value.

How? Well, if you own or manage a fleet of vehicles, you want to make sure they're operating at their best and ultimately working hard for the business, right? Managers must minimise the risk of breakdowns or accidents, to avoid expensive repairs and downtime. By implementing safety policies, conducting driver training, and maintaining vehicles regularly, you're not just reducing risk, you're also improving performance and cutting fleet costs in the long run.

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What is the role of a fleet risk manager?

The fleet risk manager plays a crucial role in overseeing and managing risks associated with operating a fleet of vehicles. They are responsible for identifying potential risks and implementing strategies to mitigate them.

Their duties may include:

• Developing and implementing safety policies and procedures to promote driver safety and minimise the risk of accidents.
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• Conducting driver training to improve skills and ensure compliance with safety policies and regulations.
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• Monitoring vehicle performance and maintenance to reduce the risk of breakdowns and improve fleet efficiency.
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• Implementing telematics technology to track driver behaviour and vehicle performance, using gathered data to identify areas for improvement.
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• Managing insurance and claims processes to minimise financial risk.
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• Staying updated with industry regulations and best practices to ensure compliance with the latest laws.

Fleet managers work tirelessly to protect their fleet at all times. They not only safeguard their vehicles and the business's bottom line but also prioritise the safety of their employees. After all, the drivers are the ones behind the wheel, interacting with customers, delivering services, and moving assets from one location to another.

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Unlock the hidden benefits of proper fleet risk management

See immediate results within your fleet with risk management. Unlike hidden secrets that take ages to reveal their benefits, risk management delivers instant advantages from the moment it's implemented.

Reap the benefits:

1. Increased returns on investment
   
   By keeping your fleet in top shape, you can avoid unexpected downtime and other costly issues, ultimately leading to higher returns on your investment. This can help you save money and invest in other important areas of your business.
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2. Lower insurance premiums
   
   When you manage fleet risks, you show your insurance company that you're committed to safety. This can lead to lower insurance premiums, which can ultimately save you money.
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3. Reduced business liability
   
   ‍ If one of your drivers causes an accident, it could spell disaster for your business. By taking steps to reduce risk and improve safety, you can protect your business from legal battles and maintain a positive reputation in the market.
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4. Heightened work focus
   
   ‍When you prioritise fleet safety, you create a culture that encourages your employees to take extra precautions with their tasks. This can help keep everyone in your organisation safer and more focused on the task at hand.
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5. Less guesswork
   
   With a risk strategy in place, you can predict and prevent potential issues before they happen. This helps you make more informed decisions leading to better outcomes for your business.

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Why is fleet risk management important?

It’s reported that the risk management software market was valued at USD 27.80 billion just two years ago, in 2021, and is now projected to reach USD 86.53 billion by 2030. Many businesses are falling in line with investing in their fleet’s safety.

If you're not yet convinced that your business needs a fleet risk manager, here are a few key aspects that could have you rethink your approach.

Risk managers help:

• Reduce costs - By preventing accidents, vehicle downtime, and legal issues, fleet risk management can save your business money in the long run. It also helps you optimise your resources and allocate them to other priorities.
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• Remain compliant - Compliance with local, provincial, and federal regulations is essential for any business operating a fleet. Failing to comply with regulations can result in hefty fines and legal issues that can damage your business's reputation and harm your budget.
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• Improve driver safety - Fleet risk management helps you promote a safety-first culture in your organisation, reducing the risk of accidents and injuries. This can also lead to reduced insurance premiums and a more favourable risk profile.
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• Improve productivity - By minimising operational interruptions, fleet risk management can improve your fleet's performance and productivity, leading to increased savings and better resource allocation.

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Areas focused on by risk management

Fleet risk management covers a wide range of areas related to operating a fleet of vehicles. Here are five areas fleet risk management covers:

1. Driver safety
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   This involves implementing safety policies and procedures to promote driver safety and reduce the risk of accidents. This can include driver training, monitoring driver behaviour and implementing telematics technology to track driver performance with AI cameras and audible alerts.
   
   Monitoring drivers via telematics data can provide behavioural insights such as tailgating, late braking, or speeding. This can then be addressed through coaching safe driving and result in dramatically improving fleet and driver safety.
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2. Insurance and claims management:
   
   Fleet risk management includes managing insurance policies and claims processes to minimise the business's financial risk. This can include working with insurance providers to ensure adequate coverage and managing claims processes to minimise downtime and costs.
   
   Fleet managers regularly review their policy terms with insurance providers to ensure the fleet's insurance coverage is up to date, and aligned with business needs. This helps to explore opportunities for optimising coverage while minimising costs.
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3. Compliance and regulations
   
   One of the biggest headaches fleet managers experience is keeping up with the rules that govern commercial fleet operations and the related paperwork.
   
   Fleet vehicles should be fit for purpose, inspected regularly, and follow a planned maintenance schedule. All drivers should be fully trained to operate their assigned vehicles, be fully aware of the company’s safety policies and know the broader compliance regulations that it operates under. Plus, drivers should be in good health and hold a valid driving licence to drive.
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4. Fleet maintenance
   
   Maintenance is a vital part of fleet risk management as it directly affects driver safety and fleet efficiency. Fleet risk management involves developing and implementing maintenance schedules, monitoring vehicle performance, and conducting regular inspections.
   
   With fleet technology, managers can efficiently maintain their vehicles by monitoring engine data, tyre pressure and braking systems, this ensures optimal fleet performance and increases vehicle longevity.
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5. Asset management:
   
   Fleet risk management involves managing fleet assets, including vehicles, equipment, and facilities. This can include developing asset management plans, monitoring asset performance, and implementing strategies to reduce asset loss or damage.
   
   Take a construction company for example, managers oversee a fleet of excavators, bulldozers, loaders etc and can accurately track the usage of each piece of equipment, and identify unusual idle times or underutilised assets.
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6. Telematics and GPS technology:
   
   The use of telematics and technology can help fleet managers identify potential risks, monitor driver behaviour, and improve overall fleet performance. This includes GPS tracking, driver scorecards, and real-time monitoring of vehicle data.
   
   Fleet managers can use this type of technology to improve equipment visibility, seeing the real-time location of their assets without depending on their drivers to inform them of their whereabouts.

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Daily fleet risks

In the world of mitigating risks, every day brings its own set of challenges. From unexpected accidents to rising fuel costs, being aware of these day-to-day risks is the first step towards developing strategies that can overcome these challenges.

Here are some potential fleet risks you can encounter:

• Vehicle collisions and other accidents
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• Costly vehicle repairs
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• Driver and motorist injuries and fatalities
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• Legal, medical, and other liabilities
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• Property and asset damage
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• Fines and other penalties for violating regulations
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• Vehicle theft and highway robberies
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• Vehicles getting caught on fire (e.g., when carrying highly flammable items)
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• Cargo loss and damage
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• Theft and vandalism
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• Insurance and liability

This long list still doesn't cover the full extent that fleet risk managers have to oversee and control. Depending on specific industries such as food and pharmaceuticals, risk managers are faced with unique elements they have to take care of to ensure everything runs smoothly daily.

Luckily, fleet management systems are equipped to help.

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How fleet management systems keep risks under control

Advanced technology such as Cartrack’s smart telematics has given fleets the ability to leverage millions of data points to make better decisions in risk management. Managers can employ a variety of telematics to lower risk and make operations safer and more efficient.

Fleet management can be an effective solution to keeping fleet risks under control for several reasons:

Telematics: Telematics technology uses GPS tracking and other sensors to collect data on vehicle performance, driver behaviour, and other key metrics. Fleet managers can use this data to identify areas of risk, such as speeding or aggressive driving, and implement strategies to improve driver behaviour and reduce accidents.

Data-driven decision-making: Fleet management relies on data to make informed decisions about risk management. By collecting and analysing data on driver behaviour, vehicle performance, and other key metrics, fleet managers can identify areas of risk and develop targeted solutions to address them, as well as track improvements over time.

Proactive approach: Fleet management takes a proactive approach to risk management, which means that potential issues are identified and addressed before they become major problems. By implementing preventive maintenance programs, driver safety training, and other proactive measures, fleet managers can reduce the likelihood of accidents and breakdowns.

‍Compliance: Fleet management solutions can help fleet managers ensure compliance with regulatory requirements related to vehicle safety and maintenance. By staying up-to-date with the latest regulations and implementing strategies to meet these requirements, fleet managers can reduce the risk of fines, penalties, and other legal issues.

Additional devices include:

• GPS tracking devices offer real-time location tracking and other vehicle data on both powered and non-powered assets. They also support better route decisions based on the latest road, weather and traffic condition information
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• ELDs (Electronic Logging Devices) give fleets the ability to collect and transmit reports that are needed to meet compliance mandates
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• Dash cams offer real-time images/footage of what is happening both inside and outside a vehicle
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• Fuel cards give managers control over when and where fuel is purchased and by which driver

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The ultimate secret revealed: Cartrack fleet technology

With the ever-increasing number of vehicles on the roads, fleet risk management has become more difficult to manage.

Cartrack provides technology and services designed to help fleet managers ease through this process with their fleet solutions.

Real-time monitoring: With installed tracking units and Cartrack’s fleet management platform, vehicle tracking technology allows fleet managers to stay connected to their fleet at all times with accurate vehicle location and instant notifications. Cartrack also offers a Geofence feature that allows you to set virtual boundaries around areas and receive real-time alerts whenever your vehicle enters or exits these areas.

Driver behaviour analysis: Cartrack's technology also includes driver behaviour analysis through driver scorecard reports that indicate unsafe driving behaviours like harsh speeding, braking and turning, and AI cameras with in-cabin audio alerts that go off when drivers show signs of fatigue or distraction. This can help fleet managers provide targeted training and coaching to those unfocused drivers, ultimately improving driver safety and reducing the risk of accidents.

Maintenance tracking: Cartrack's fleet management system keeps track of each vehicle's mileage, engine hours, and time intervals between services to help ensure that vehicles are properly maintained and serviced on schedule. Managers are informed of the on-coming vehicle service through auto-generated reminders when a vehicle reaches its maintenance threshold. This can reduce the risk of breakdowns and other issues leading to downtime.

Accident management: In the event of an accident, Cartrack's telematics technology can detect sudden impacts or collisions and instantly send a notification of the event to fleet managers while their tracking units further help by quickly locating the vehicle and prompting a quick response to send emergency personnel to the incident. This can help save the driver's life and reduce the risk of damage to other motorists and your vehicle.

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Remain compliant: Easily manage and automate your regulatory compliance throughout your operations with these Cartrack tools:

• Time tracking: This enables tracking of driver work and break times, preventing vehicle operation if the driver doesn't take their full break time, ensuring drivers get the necessary rest periods.
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• Automated compliance management: Automate regulatory compliance and track fleet requirements such as insurance, permits, and contracts through Cartrack reminders.
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• Real-time risk alerts: Prevent violations with Cartrack's fleet compliance software that provides real-time alerts about compliance or operational risks and prevents unauthorised vehicle or machinery usage until the risk is handled.

Specialised sensors: Cartrack offers a range of specialised sensors that cater to diverse industries. With sensors such as CANBus vehicle diagnostics, cargo door monitoring, temperature monitoring, and seat pressure sensors, Cartrack empowers various industries like transportation, logistics, construction, security and perishable goods to enhance efficiency, security, and safety.

All these smart features and services from Catrack, help fleet managers become more vigilant to potential risky events and alleviate or at least lessen their daily stresses with top-notch fleet management solutions that can help identify and mitigate risks and keep their fleets running safely and efficiently.

A fleet management company that can reduce fleet risks

Looking for a reliable solution to help manage and mitigate fleet risk? Cartrack offers a comprehensive suite of telematics and fleet management services that can help keep your vehicles, drivers, and assets safe and secure.

Contact us today to learn more about how we can help your business!