Transporting us from one place to another is fast becoming just one of the things that a car can do for us. Connectivity is something that we expect from most cars today, in the form of an available Bluetooth connection. Some cars also offer a mobile Wi-Fi hotspot enabling occupants to connect to the Internet via the 3G/4G mobile networks.

But these are comparatively narrow definitions of connectivity and with further advances in autonomous driving there will be more ways that vehicles can connect with each other and communications networks. The UK recently announced that it would permit autonomous ‘driverless’ cars on its roads from January 2015, in the form of a trial in three cities, which have yet to be identified.

Mercedes-Benz recently announced that it has also been carrying out preliminary trials with an autonomous driving system based on its Actros heavy truck.

The vehicle uses radar, GPS and Wi-Fi among its communication systems and will be on display at the IAA Hanover truck show in September.

The Business Case for Work Related Road Risk Management (WRRM) was published by the European Transport Safety Council (ETSC) earlier this year, as part of its Preventing Road Accidents and Injuries for the Safety of Employees (PRAISE) project. As the title suggests, the report was published to show fleet managers that apart from reducing accidents and injuries involving employees and those driving for an organisation, there is a strong business case for a risk management approach to driving for business.

To quote from the report, “From a reputational and business perspective, being involved in a fatal or serious collision can have a significant impact on organisations and their leaders.” The report gathers accident data from across Europe to give an idea of the scale of the problem. ETSC’s own data shows that in 2012, 28,000 lives were lost on European roads and a high proportion of these fatalities were related to driving for work or commuting. Data from the UK, Germany and France illustrates the size of the problem in these countries.

Europe-wide problem UK data shows that business travel is responsible for about 30% of all travel in the country. This figure rises to over 50% if commuting is also included.

UK Government data shows that people who drive for work are 40% more likely to be involved in a collision than other drivers and this accounts for up to one in three road collisions on UK roads. European Commission data from 2005 suggests that such collisions accounted for 39% of work-related deaths in the EU.

In addition, these are the world’s leading non-medical cause of death and serious injury.

The report also indicates that commuting accounts for over 20% of work related deaths in Spain and as much as 45% in Germany. Data from Eurogip in France shows that 47% of work related deaths occur on the roads in France.

The data shows that the problem is sizeable across Europe. In fact it is notable that among France, Germany, Spain, Belgium, Sweden and Finland, the only countries that have seen the number of deaths due to commuting fall in 2011-12 were France and Spain, two countries badly affected by the European financial crisis. These reductions could be at least partly due to a reduction of people in employment rather than any changes in policy affecting work related driving.

Managing risk reduces harm and damage

Even without looking into specific data relating to vehicle fleets, it’s clear that there is a business case for managing work related road risk, by reducing the number of employees involved in accidents causing death and injury. The report states, 'The business case for road safety is centred on the prevention of harm to persons and the protection of property and the environment.' Furthermore the report stresses that this is a significant shift from the historical position when organisations tended to focus on road safety only after a high-cost collision or fatality, as a reactive response. So taking appropriate steps to avoid accidents before they can happen is a key element in the strategy. In the report’s own words: 'Any WRRRM scheme should start by looking at the business case to influence a sustainable reduction in the numbers of people injured, traffic offences committed and assets damaged.'

Reducing risk equals reduced cost

So where should an organisation start from? The report highlights some useful links. For example, the link between road safety and asset and fuel use. If journeys are planned in advance and the driver leaves with plenty of time to arrive at his or her destination, the driver will feel less pressure to speed and take risky decisions. A driver who feels under less pressure is going to be more alert and relaxed. This is likely to result in less fuel being used and less wear and tear on the vehicle, as well as a lower likelihood of risky behaviour. Taken together, these factors will influence residual values, maintenance and repair costs.

A collision that results in business being lost could have more far-reaching effects than just that loss of business. It could also affect the reputation of the organisation concerned, which could impact on future business. Legal requirement to manage risk The report reminds readers that under European Framework Directive 89/391/EEC every employer in the EU is required to undertake a risk assessment from a prevention perspective and that this should include employees travelling for work. A number of national agencies have issued guidance documents on the subject and the report highlights “Driving at work: Managing work-related road safety”, produced by the UK Department for Transport as a recognised minimum benchmark standard. This publication makes it clear that vehicles are classed as workplaces and that risk assessments need to be carried out for drivers. The Swedish Work Environment Authority has also produced a guidance document relating to the European directive.

Advice on how to develop a road safety policy is included in it.

What do road accidents cost your organisation?

The report recommends that in assessing the business case for WRRM, a first step is to look at how much a road accident costs an employer. Included here are approximate repair costs of the last vehicle accident, or assessing the annual repair bill. Health benefits need to be considered too, such as medical and disability insurance, sick leave, life insurance and medical compensation costs.

Since third parties are often involved, associated costs also need to be factored in. This could extend beyond direct costs to include third party vehicles, personal damages, property damage, personal injury claims, fines and legal fees. And the list goes on. It could also include redelivery costs, damaged or lost stock, administration costs as well as image, reputation and PR effects. The report recommends two publications on safety cost, from the UK Health and Safety Executive and the US National Highway Safety Administration.

Not all road safety initiatives carry a cost to an organisation, says the report.

These could include a detailed internal business case presented to senior management, asking insurers, leasing companies and vehicle suppliers to support risk management programmes and focussing on uninsured loss recoveries, using the money clawed back from ‘at fault’ third parties to invest in WRRM programmes.

These are just some of the things covered by the report. Involving the most senior managers and directors in any WRRM programme is reckoned to be a key objective, ensuring that everyone in the organisation takes the matter seriously. 

The report can be downloaded for FREE at: http://etsc.eu/the-businesscase-for-managing-roadrisk-at-work/