Risk Reduction

Risk reduction is the active 'treatment' phase of risk management. After risks have been identified and evaluated, this step involves taking concrete actions to control the highest-priority risks. The goal is to reduce either the likelihood of the event, its severity, or both.

The common strategies

Common risk reduction strategies in a fleet include:

• Engineering Controls: Installing safety technology on vehicles, such as telematics cameras, Advanced Driver-Assistance Systems (ADAS), or improved mirrors to reduce blind spots.
• Administrative Controls: Implementing policies and procedures. This includes creating a strong safety policy, enforcing rules on mobile phone use, and designing realistic schedules to prevent fatigue.
• Personal Protective Equipment (PPE): While more common in other industries, this can include ensuring drivers wear high-visibility clothing when outside the cab.
• Training: Defensive driving courses, training on pre-trip inspections, and coaching based on telematics data are highly effective reduction measures.

Transferring the risk

Another strategy is 'risk transfer', which doesn't reduce the risk itself but transfers the financial impact to another party, primarily through insurance. A comprehensive approach uses a mix of these strategies.