Corporate risk is a multifaceted issue that organisations must be mindful of in today’s globalised market. One area requiring careful consideration is business travel. Whether your employees are travelling locally or internationally, it’s important to understand the potential risks and take measures to mitigate them.
One of the most significant risks associated with travel is the safety of your people. This includes everything from accidents and illnesses to natural disasters and terrorism. To minimise the risk of harm, organisations have policies that include guidelines for employees to follow as they prepare for their trip and whilst they are travelling should they experience difficulties.
Another area of risk to consider is cybersecurity. With the increasing reliance on technology and online connectivity, the risk of data breaches and cyber-attacks has become a significant concern. Organisations should take steps to protect their sensitive data and ensure employees have the necessary processes in place, for example two factor authentication, to prevent vulnerabilities when they access systems when they are travelling. Furthermore, it's important employees are trained to recognise and prevent potential cyber threats while travelling.
Business travel also presents financial risks. Unexpected expenses can quickly add up, and poor pre-trip planning or oversights can lead to costly overspend. To mitigate these risks, companies should establish clear policies regarding travel expenses, including guidelines for reimbursement and company credit card usage. This can be as simple as agreeing a budget with the traveller before they depart. After all, most employees would think it reasonable to explain why they intend to spend thousands of dollars for most purchases so why not travel.
Finally, organisations must consider the legal and regulatory risks associated with business travel. Laws and regulations can vary widely from country to country, and organisations must ensure that they are compliant with all relevant regulations. This can include everything from immigration laws to taxation requirements, so it’s essential to work with legal and financial experts who understand the intricacies of international business.
Corporate risk and business travel are closely linked, and it’s important for companies to take a comprehensive approach to mitigate potential risks. By developing a clear travel safety policy, protecting sensitive data, establishing clear expense policies, and working with legal and financial experts, businesses can help ensure the safety and success of their employees while they are travelling.