As exporting begins to ramp up like never before in the wake of ChAFTA, the roles of transportation, freight, and logistics are updating their policies and implementing new procedures as matter of necessity. Incorporating and complying with all of the new sets of regulations involved with such a large opportunity will be challenging, meaning that risk management efforts in these areas need to be elevated as well.
In the broadest and simplest terms, risk management is first spending time finding any possible obstacles that could arise which may slow or halt you in achieving your goals. Next it involves coming up with contingency plans for each possible obstacle to either avoid, eliminate, or minimise them. Transportation is inherently full of risks and unknowns, and new uncertainties makes managing them even more difficult.
Identifying and Analysing Risk
The Australian Trade Commission’s website describes risk management as having six basic elements:
- Establish the context of the risks
- Identify the risks
- Assess probability and possible consequences of the risks
- Develop strategies to mitigate these risks
- Monitor and review the outcomes
- Communicate and consult with all parties involved
As with any strategy, the key to successful execution lies in the stages of identification and analysis. Careful observation and study of existing and future processes and plans allows you to identify the weak links and then repair or compensate for them. Focusing only on results leaves too many unanswered questions about how improvements can be made – and improvements are almost always required.
With China eagerly awaiting your goods, the likelihood is that these improvements will need to be made very soon and very quickly. Otherwise your business’ potential new profits could end up being swallowed by fines or outweighed by lost business. That’s why your compliance framework needs to be solidified and your auditing needs to be simple, fast, and highly effective.
Good Auditing Supports Risk Management
Risk management and compliance go hand-in-hand in establishing good corporate governance. Risk management sees the iceberg off in the distance, and compliance ensures that the captain and crew keep the ship safe and well away from it. Auditing is what makes sure that they are compliant. In order for such a complex system as transportation to track all of the necessary steps and conditions, a robust and scalable compliance monitoring solution is required.
Compliance Checkpoint provides the scalability needed to cover every aspect of transportation, and the simple tablet interface makes the process fast and accurate. Real-time results are a huge plus in an industry where your main tools are always in motion on roads, seas, or skies. Good risk management benefits every aspect of the transportation industry, but it takes great auditing to avoid the possible consequences of those risks.