Risk management experts have noted that “The risk management context should also provide a means of establishing the overall total risk exposure so that this can be compared with the risk appetite of the organisation and the capacity of the organisation to withstand risk.” (Hopkins, 2012).
Risk management is summed up as the “3 lines of defence” (ibid), requiring senior management, specialist risk functions and internal audit.
It is therefore essential that all transnational risk management be considered as part of an organisation’s overall risk exposure.
By extension, this includes business travel, mobility and relocations.
There is an imperative that such matters be addressed as part of an enterprise risk management approach.
Generic templates and standards are insufficient for such considerations.
ISO 31000 the international risk management standard for example, has been criticised for being “unclear, illogical, impossible to comply with and lacking adequate probability models. “ (Leitch, 2010).
Travel risk management is an oversimplification of the modern work environment which has become more complex, technical and dynamic, across multiple domestic and international locations, connected by ever-advancing digital technologies.
Multinational businesses are already using “talent analytics” to compete, based on their knowledge of personnel and work processes to outperform competitors. (Davenport et al., 2010).
Transnational risk management of talent requires the same alignment.
Corporate Risk Experts state that “Identification and prioritisation of risk need to be a mixture of top down and bottom up” to be effective. (Merna et al., 2005).
Scientific research and analysis warn of “subject matter experts and their elicited probabilities…whose assessments are impossible to reproduce independently”. (Brown et al., 2011).
Risk decision making is especially relevant when evaluating transnational and culturally influenced risks involving human actors such as crime, politics and terrorism.
Business continuity (BC) experts have identified the BC evolution from audit and compliance to that of a value mindset, to what is now considered as “business continuity normalisation” which “promotes effective organisational learning and knowledge management”. (Elliot et al., 2010).
Business resilience is inclusive of the resourcefulness of its human capital and management.
Social and political science has long cautioned the emergence of the “risk perception society”. ( Durodie, 2005).
Whereby our community and societal groups influence, distort, prioritise and drive action that may not be based on fact or complete information.
This is the very work environment now faced by transnational businesses and their people.
A modern and enduring “risk architecture” ( Waring, 2013) is now no longer a choice to achieve appropriate corporate governance and risk management.
Legal experts are forewarning the evolution of safety-based laws and governance from those established as a result of the industrial revolution to those that now include decentralised, mobile and travelling work environments.
One legal expert states that “the geographical location where risk manifests itself is less important than the systemic deficiency that created it”. (Tooma, 2019).
International security, criminology and risk management experts reinforce this requirement, supported by empirical research, with the recommendation of “isomorphic learning” and decision making (Wakefield, 2014) whereby management and human capital can learn from related events and experiences.
In short, there is no escaping the fact that security and risk management require standards and science-based systems to be “tested or evaluated”. (Smith, 2013).
It is clear that our work environments, transnational communities and evidence-based risk management have evolved.
Are you still toying around with simplified concepts of “travel risk management”?
If you would like to know more about the science of human safety, security and risk management sciences within a transnational setting, our experts are free to break it down and explain it, how you might apply it and as a result, de-risk the exposure of your mobile and travelling business people.
To learn more.
Intelligent, science and evidence-based decision making for you and your business travellers.
Research, analysis and content approved by Tony Ridley, international security and risk management professional.