EFFECTIVE RISK reduction starts with a conscious decision to do just that, according to Fred Zenna of Guardforce International Transportation.
It comes first with the shipper or forwarder making the decision that this is what they want to achieve, he told FTW.
It starts with the mandate that he must reduce his financial risk, and raise his rewards.
At that point, an appropriate consulting company must be brought in to analyse all the logistics and to ensure that they can offer a risk reduction, Zenna added.
All the elements must be identified, he said.
But a major problem in risk reduction is that someone must pay for it.
If you go into this value-added process, said Zenna, you have to lay out money.
At the same time, you must be pro-active and get the consultant to write you a standard operating procedure that will achieve this risk reduction.
A driving force behind the procedure is forming a good relationship with insurers, a vital ingredient of any risk reduction programme.
The insurance market is looking at the
claims ratio of shippers, said Zenna. And,
if the shipper has no risk management
in place, he will pay a higher premium.
And Lloyds are likely to be wielding an insurance hammer this year.
Guardforce has established its own risk reduction unit, Zenna told FTW, offering both short- and long-term solutions.
We can consult on risk reduction, he said, an audit trail can be taken for each customer, and we are offering our own high-security airport facility - with a full-range of monitoring all the way to the end-user.
And remember - the more losses that
a shipper/forwarder has - the more their
image suffers.
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