The 3 Pillars of Fleet Risk Management

Logistics Tech Outlook | Friday, July 19, 2019

By facilitating vehicle inspection, driver safety, and automotive compliance, fleet management organizations can ensure seamless operation and eliminate unnecessary compliance costs.

FREMONT, CA : A robust fleet risk management system is crucial for fleet operations, to maintain regulatory compliance, as well as to promote a secure environment for the business assets.  Hence, the implementation of relevant safety programs can aid businesses in overcoming fleet safety management challenges. It is imperative for organizations to deploy a fleet risk management strategy that includes safety policies, industry standards, and the associated cost factors.

Fleet risk is not limited to construction and heavy trucking industries and is bound to affect a fleet management organization regardless of the service. Since assets such as vehicles and equipment are prone to risks, implementing adequate driver safety and adherence to regulations can eliminate unnecessary compliance expenses.

Vehicle Inspection

The Federal Motor Carrier Safety Administration (FMCSA) demands that driver maintain a daily vehicle inspection report (DVIR) on hand, covering at least the previous 90 days. Also, fleet vehicles need to keep DVIRs starting from one year prior. The daily inspection will ensure the proper functioning of the assets. Also, it enables the fleet managers to monitor the health of the assets. Fleet managers can leverage fleet management software to track the DVIR records and analyze the data. It will also enable them to identify the risk trends and rectify the hazard before it can lead to breakdowns.

Driver Safety

Driver safety should always be a primary concern for organizations. Hence, there is a need to implement appropriate safety procedures and set relevant regulations. The DVIR should include inspection of tires, seat belts, and expose wires to ensure vehicle safety. Fleet managers can leverage technology, such as cams and sensors, to detect distracted driver behavior. The devices can be used to send alerts to the managers, who can decide the next course of action. It can help fleet management companies to facilitate driver safety and avoid accidents.

Automotive Compliance

It is logical for organizations to ensure a safe environment for employees. However, the security measures should include vehicles too. Several federal authorities have enforced safety standards and compliance requirements, and it is advisable to meet these regulations. Although most of these agencies focus on manufacturers, fleet management organizations can still be held accountable for conducting a timely inspection and maintaining DVIR logs.

Check out: Top Risk Management Solution Companies

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