Firms risk up to $1.25m bill over failed travel risk management, finds International SOS and KPMG
Failed business trips abroad because of poor travel risk prevention can cost organisations as much as $1.25m, according to calculations from health and security services firm International SOS and KPMG.
Launching its new Return on Investment Report, International SOS said lack of health, safety, security and wellbeing prevention across an organisation’s mobile workforce can lead to assignments overseas being disrupted or aborted.
The financial risk estimate of a failed overseas trip, based on research with 255 risk managers and HR executives globally, is based on data including compensation, relocation costs, ongoing assignment support and taxes.
International SOS and KPMG also measured the return for every $1 invested in preventative health check programmes at $2.53. International SOS said 72% of HR specialists report a positive impact on employee wellbeing through partnerships with third-party travel specialists. International SOS itself handled 102 million medical and security alerts affecting mobile workers last year.
Dr Neil Nerwich, group medical director at International SOS, said: “The interventions we take very early on in the course of a medical event have a significant impact on the ultimate medical outcome of a patient. At International SOS, early intervention is at the core of our approach, which starts before an individual travels or is assigned overseas.”
“We are not only significantly benefiting medical outcomes, but also mitigating our clients’ business disruption. By addressing illnesses or injuries promptly with International SOS medical professionals involved from the first contact, we can identify and mitigate potential issues that might escalate into catastrophic events,” Nerwich explained.
Katherine Avery, tax principal at KPMG, added: “With the impact to the business of a failed international assignment potentially being detrimental, striking a balance between managing cost and employee experience is vital for the success of any assignment.”
She said engaging with the internal global mobility team early in the planning stages can be highly beneficial because their expertise can help to ensure an optimal employee experience while also effectively managing cost and compliance.
