Risk management is an integral part of any business. The US Department of Transportation Federal Highway Administration defines risk management as “the process of analytical and management activities that focus on identifying and responding to the inherent uncertainties.”
According to the organization, risks can be external or internal. They can lead to disruption and losses, hence it is important to use a risk analysis tool that can identify risks so that you are prepared no matter what the future holds.
Picking the risk transportation risk analysis solution, however, can be tricky due to the huge number of options out there. In this article, we’ll highlight what to look for when selecting a transportation risk analysis tool so that you can have the best one.
Let’s get started:
1. Comprehensive Risk Assessment
Get your hands on a tool that offers comprehensive risk assessment so that you can keep an eye on all potential risks.
Risks can be internal and external, while internal risks are manageable, external risks can be difficult to tackle. You must get a risk assessment tool that can identify both internal and external risks and present a true picture.
This will make management easier and remove the need to handle multiple apps. You will get full visibility into all risk factors and there will be little to no blind spots.
2. Past Report and Numbers
Go for an app that gives you access to historical data. This is very important because it can be difficult to identify risks and improvements without old data.
You can learn from past figures and know what not to repeat. It can be hard to make informed decisions without being clear about the impact of your past decisions.
3. Actionable and Instant Reporting
We understand that it can be difficult to come across a tool that offers actionable and instant reporting. In most cases, data is not presented in a neat manner and it can take a while to make sense of it.
Look for a tool that presents data in a neat manner so that you do not have to waste a lot of time trying to comprehend what a set of data means. This will not only save time but will also reduce the risk of errors.
4. Look for Customization
When it comes to transportation risk analysis solutions, one size doesn’t fit all. This is why we suggest that you opt for customized solutions.`
Ready-to-you solutions might be cheaper and quick but they are not always ideal, however, don’t write ‘em off because some might be suitable for you.
The most important thing is to be fully aware of your requirements. Look for tools in your niche. For example, if you have a huge network of vehicles used to transport oil then you should look for transportation tools used for such a business.
Since you will be using multiple tools, it is important to get a risk analysis solution that can handle data generated using different tools such as Excel and SPSS.
Disconnected and soiled data is not of much use to an organization. It wastes a lot of time and causes delays in mitigation efforts.
Since data changes every hour, one needs to have a solution that can quickly integrate and work on data so that you do not end up with useless or outdated numbers.
6. Objective Recommendations
Technically speaking, the job of a transportation risk analysis tool is mainly to identify risks and not suggest solutions. However, if you study the market, you will find that there are some options that offer recommendations based on your circumstances. But, the problem is that these recommendations are not always objective or reliable.
Remember that identifying transportation can never be enough. You must take steps to mitigate these risks. At the end of the day, that’s what matters.
There is no perfect mitigation strategy and the right option depends on a number of factors including the changing market scenario.
Some risk factors cannot be under your control. Weather, for example, is not something you can control but a business can take steps to prepare for sudden weather changes.
Make sure to keep these points in mind when selecting a transportation risk analysis tool. This might sound like an additional expense but it’s worth it.
As PwC highlights, “Logistics companies will need to focus on ‘digital fitness’, cost efficiency, asset productivity, and innovation if they want to meet shopper expectations.”
Technology is out there to help you, so make good use of it. Get a 360-degree view of your business and make the right call.