Understanding Fleet Risk ManagementB Y K e n n y S m i t h

SECTION

1

SECTION

2

SECTION

3

SECTION

4

2

Why Is Auto So Difficult?

3

of auto

accidents are

caused by poor

driver choices.

96% Costs of other work injuries

Each year

3,000 - 4,000 workers die while driving.

3x

4

How can I manage

the drivers?

I can’t see them.

I get calls from people about our drivers.

Well no… we don’t have any rules or expectations.

5

Auto Risk Management – It Isn’t Simple But It Can Be Managed

• Accidents have causes

• 95% of accidents have two or more “causes”

• Accident prevention/reduction

Identifying and predicting “causes”

Implement controls (fixes) where you find deficiencies

6

Accident Causation

95% of accidents have two or more “causes”

Equipment Entity Policy/MgtPeople

Environment Materials/Other Department Policy

Accident

Crash

Incident

Injury

Cause Effect

SECTION

1

SECTION

2

SECTION

3

SECTION

4

8

Accident Trends

9

Auto Loss Trends

Law EnforcementPublic Works

Fire Department

Parks and Recreation

Admin Operations

10

Auto Loss TrendsCommon Claim Types Claim Cost

Hit Vehicle Ahead

Inter-section

Head-on

Other

SideswipeBacking

Severity

Hit Vehicle Ahead

Backing

Inter-section

Other

Sideswipe

Frequency

11

National Averages

National Highway Traffic Safety Association

Non-fatal crash

No injury

Non-fatal crash

With injury

Crash With

Fatality

$16,000 $70,000 $500,000

12

Claims Reporting And Investigation

SECTION

1

SECTION

2

SECTION

3

SECTION

4

13

Culture Has A Lot To Do With It

14

Safety Culture

• Represents mindsets, values, and beliefs

• Entity

• Department

• Worksite (vehicles)

15

Safety Culture

• Represents mindsets, values, and beliefs

• Entity- Management driven

• Department- Every manager

• Worksite (vehicles)- Every site

16

Every Successful Safety Program Has:

• Three traits

• Culture – Everyone wants to be better/safer. Expectations are

accepted and fostered.

• Compliance – Rules/regulations/procedures and discipline

• Support – Management; by originating dialogue, funding

safety/machinery and equipment, and demanding safety be a

priority.

17

Develop Culture And Accountability

CONSEQUENCES (DRIVER)

RULES - BEHAVIOR & PERFORMANCE

OR

GA

NIZ

ATI

ON

SU

PP

OR

T (C

ULT

UR

E, T

RA

ININ

G, E

QU

IP/T

OO

LS…

)S

UP

ERV

ISION

• Draw your box of acceptable behaviors

• Manage behaviors

18

Accident Rate And CultureAccidents

Time = Years

Start 1 2 3

Management committed Change in commitment

19

Culture

Accidents

Management buy-in

Rules

Discipline

Supervisor training

Consequences

Employee buy-in

Self-directing

Watching out for ME

Watching out for US

SECTION

1

SECTION

2

SECTION

3

SECTION

4

20

Fleet Controls

21

FYI• Auto coverage is written on the vehicle, not the

driver

• You are responsible for any damage the vehicle does

o You are responsible for who drives

o You are responsible for securing the vehicle

• Develop your controls to survive intense questioning

• Failure to supervise (negligent entrustment)

• Failure to train

22

Fleet Safety – 95% Driver Management• Management expectations – policy/rules

o Driving is a privilege

o Entity and departmental operational rules

• Driver supervision

o Driver selection – who you allow to drive

o Training

o Accident review

o Performance monitor (positive and negative response)

• Inspection and maintenance – driver and shop

23

Fleet Safety Program

A sample fleet safety program is provided.

K e n n y S m i t hK w s m i t h @ o n e b e a c o n g o v. c o mR i s k C o n t r o l M a n a g e r3 0 3 - 5 3 1 - 3 8 4 3

Questions