Cargo transportation in Brazil: how to do management for risk prevention.
In general, the Brazilian has the characteristic of being corrective rather than preventive. In the area of risk management in cargo transportation this is no different. With almost 1 million and 700 thousand kilometers of highways, where more than 60% of the volume of goods handled in the country pass through and register numerous occurrences daily on the roads, it is essential the use of preventive resources by companies. According to the National Association of Road Freight Transport and Logistics (NTC & Logística), the states of São Paulo and Rio de Janeiro, together, led the cases of cargo theft, totaling 80,66% * of the occurrences in 2016.
"The problem is that when there are incidents like these there is emergency combat. However, companies forget that they can occur again and that there are other costs involved, in addition to losses, that exceed the value of the cargo transported, "says Luciano Póvoa, transport risks manager at Herco, a risk consulting firm and MDS.
Every activity has a chance of failing and mistakes can be costly. So preventing is the best solution to avoid unpleasant surprises. In this case, risk management appears as a way of shielding financial losses and image damage. Still, if all that is planned out of control, organizations can use the insurance policy as a way to minimize losses.
Mapping logistics and risk, establishing processes, defining protection measures, and having standards of conduct are key strategies for a successful risk management within a company. The planning must follow a structured method that is governed by steps: initially, a thorough evaluation of the financial losses within the logistic process is made, being caused by robberies, accidents, failures, losses, etc. "It is important to note that, in addition to financial losses, there are other hidden losses that can often be more devastating, such as risks to the environment and society, reputation for company image, loss of productivity or contracts for disruption of the mission ", Emphasizes the Póvoa.
Once the planning is done, the company needs to identify where the damage is occurring, prioritizing the major ones or what happens next. "If, for example, burglaries are frequent at petrol stations, is it possible to map and identify the safest points or do you need to hire a redundancy facility? If the problem is in accidents in the long stretches, we must understand the dynamics of how they are occurring by analyzing causes and contributing factors, starting with a specific program for treatment, "explains the manager.
With the diagnosis, it is time to implement the measures and the monitoring to see if everything that was planned is being executed or if improvements or changes are needed. "In summary, the work of risk management consists of identifying, analyzing and recommending preventive measures and constantly mitigating the risks involved," says Póvoa.
Hiring insurance in practice
Business protection against unforeseen losses depends on the quality of the insurance coverage and the service provided by the broker. Typically, this type of insurance is comprised of basic coverage, auto hiring, and additional coverage, which usually meet the specific needs of each client.
There are insurers who, in addition to having specialized technical staff to meet the contracted insurance policies, quotations and coordination of claims, have partnerships with risk consultants. "Hence the importance of these companies, which together with the insurer can monitor the dynamics of risks throughout the life of the policy, proposing changes that benefit both ends of the business," concludes Luciano Póvoa.