Travel Risk Management Danny Chan

Travel Risk Management

Danny ChanDirector of Global Risk Assessment

iJET Intelligent Risk Systems

Aug 22, 2007

Travel Risk Issues… Growing

Perfect Storm Decade

Security: Terrorism

Jordan Hotel Bombing

2005 – 57 dead

London Tube Bombing

2005 – 56 dead

Mumbai Train Bombing

2006 – 200 dead

Hurricane Katrina (2005)• 1,836 deaths• $81.2 billion in damages

Mumbai Floods (2005)• More than 1,000 deaths• Over 700 flights cancelled or delayed

Tsunami (2004)• 229,866 persons lost• Includes 186,983 dead; 42,883 missing

Natural Disasters

Health: Infectious Diseases

● Newly Emerging Re-emerging/Resurging “Deliberately emerging” Adapted from Morens, DM., et. al. 2004. The Challenge of Emerging and Re-emerging Infectious Diseases. Nature 430:242-49.

“Behind the Headline” Threats

Weather & Environment Cultural Awareness Transportation System Financial Health Outbreaks and

Concerns

Communications Safety & Security Local Laws Entry/Exit

Requirements Language

“You are more likely to get struck by lightning than to be involved in a terrorist attack.”

Road Safety

1.2 million die – 40 million injured annually

65% increase in next 20 years

Varies with destination (per 100,000)

United States: Rate 15.0

China: Rate 19.0

Brazil: Rate 25.6

Denmark: Rate 9.5

Korea: Rate 21.9

Travel Manager’s Challenges

Higher level of care expected

Integration with Business Continuity Planning (BCP)

New systems and automation

Incident response and recovery

“Reduce T&E by 10%”

TRM: Legal Requirements

Duty of Care

Risk Disclosure

Standard of Care

What can you do?What can you do?

Response Time is Key

OptimalResponse

Preparedness Impacts Response Time

Planning Mitigation Communication Exercises/Drills

PREPAREDNESS

Travel Risk Management (TRM)

Travel Risk Management is a well defined process to identify risks, prepare travelers pre-trip, monitor threats, and respond to incidents as they arise.

Proactive

Planning

Reactive

TrainingIncident

Response24x7

Monitoring

Feedback

Travel Risk Management Benefits

More productive and prepared employees

Reduced number of costly “incidents”

Lower cost of response

Reduced corporate liability

Multidisciplinary Process

EMPLOYEE

HR/LEGAL

Focus on expatriates

Responsible for employees

Policy & procedures

Corporate insuranceprograms

SECURITY Risk assessment Crisis & evacuation plans Emergency contact info Up-to-date itinerary

TRAVEL Advisor and knowledge base Books trips and handles travel issues Provides reporting

MEDICAL Pre-trip health planning Immunizations Medical assistance & evacuations for international travelers

Training

Three levels: I. Travelers

II. Travel advisorsIII. Crisis management

team

Data Requirements

“Traveler Tracking”

Emergency Profiles Key Contact Information

Crisis Management Team

Safe Havens

Global View of Travelers

24x7 Monitoring

Consistent, automated

process

Real-time threat monitoring

“All Threat” analysis

Who is impacted?

Actionable intelligence

Travel Risk Management Process

Employeearranges

traveldirectly

Real-timemonitoring

during travel

Conduct pre-trip

briefings fortravelers

Designatedtravel agent

or website

Itinerary andprofile

databasemaintained

Appropriatemeasuresas events

dictate

Risk mitigationand

response plansprepared

Evaluateitinerary and

travel riskinformation

* Decision Point

*

**

Real-Time Notification

Where are you now?Where are you now?

Systematic Approach – Maturity Model

A maturity model provides Objective Assessment

Benchmarking Tool

Standardized Communication

Prioritization

Actionable Next Steps

Travel Risk Management Maturity Model

Reactive (1) Ad hoc. Few policies. Extremely challenging in the event of an emergency.

Basic travel risk management policies defined and documented. Primary focus on incident response.

Consistent execution of travel risk management processes.

Metrics collected and reviewed. Cross-organization support.

Program integrated throughout organization.

Defined (2)

Proactive (3)

Managed (4)

Optimized (5)TRM3

TRM3 - 10 Key Process Areas

Data Management

RiskAssess-ment

Policy/Procedures

Training

Notification

Communication

RiskDisclosure

RiskMitigat

ion

Risk Monitoring

Response

Overarching KPAs

Management KPAs

Infrastructure KPAs

Key Process Area Level 1 Level 2 Level 3 Level 4 Level 5

POLICY / PROCEDURE x

TRAINING xRISK ASSESSMENT xRISK DISCLOSURE xRISK MITIGATION xRISK MONITORING xRESPONSE xNOTIFICATION xDATA MANAGEMENT x

COMMUNICATION x

x

LEVEL

2

PLUS

6

Assess Your TRM3 Level

Survey Results by KPA50 Respondents

9

20

15

18

16

13

21

18

10

14

32

23

26

19

16

18

22

16

18

20

14

15

10

2

10

11

12

8

7

8

16

16

3

6

2

2

5

2

7

3

6

3

6

0

2

0

4

0

2

0

2

0

1

0

0

POLICY/PROCEDURES

TRAINING

RISK ASSESSMENT

RISK DISCLOSURE

RISK MITIGATION

RISK MONITORING

RESPONSE

NOTIFICATION

DATA MANAGEMENT

COMMUNICATION

OVERALL TRM LEVEL

Level 1 Level 2 Level 3 Level 4 Level 5

Aggregate Survey Results50 Respondents

TRM3 Survey Results

0 1 2 3 4 5

POLICY/PROCEDURES

TRAINING

RISK ASSESSMENT

RISK DISCLOSURE

RISK MITIGATION

RISK MONITORING

RESPONSE

NOTIFICATION

DATA MANAGEMENT

COMMUNICATION

Level

Summary

Effective Travel Risk Management Is multidisciplinary

Requires training Includes intelligence

& communication Relies on planning to minimize

impact

Is measured and benchmarked

Thank You

Danny Chan

danny@ijet.com