Risk management
Risk Management Programs (RMPs)
The security of cargo transported by land is achieved by defining several measures which, depending on the special characteristics of each logistics operation, should be coordinated effectively and efficiently to minimize the likelihood or theft / robbery, at the lowest possible cost.
Together with the Insurance Company and/or the Cargo Shipper/ Broker and/or Logistics Operator/ Carrier, ARM Services determines the specific RMP for exposure to risk in each operation. RMPs include the main, complementary, and alternative measures to ensure that the logistics flow is not interrupted.
- Characteristics of the cargo transported - claims record
- Transits - risk areas
- Vulnerability and management of information on the sites where the transits originate
- Electronic security devices installed in the vehicles used
- Drivers’ background check reports
- Levels of subcontracting of the logistics operator/ designated carrier
The decision to implement our RMP has allowed our clients to significantly reduce the number of claims. Our claims event rate (average from 2018 | 2019 | 2020 and up to 03/30/2021) on monitored transits (considering high exposure cargo) has been <0,031 in Argentina and <0.061 in Chile. Even more so, during that same period, we thwarted and/or recovered (totally or partially) 90.1 % of the incidents in Argentina and 77.1 % in Chile.
Some of the security measures applied are: Satellite Audit | Audit + SOS (critical event management) | Monitoring/ Virtual escort security| Convoy custody/ Escort custody | Background check.
Added Value
- Uncovered risks due to non-compliance with security measures.
- Contingencies arising from joint claims by the security providers involved (and/or their officials).
- The security measures determined by the RMP are uploaded onto our Intelligent Asset Management System, (hereinafter SIGA®, by its acronym in Spanish). This system automates several processes and allows us to develop different KPIs to be able to better control the investment in logistics security.
Security Tools
Satellite Audit
The main reason why a claim due to theft/ robbery of cargo in transit cannot be settled by an insurance company is that the electronic security devices in the vehicle transporting the cargo do not meet the minimum requirements of transportation insurance.
Our satellite audit service verifies that the GPS/GPRS device and all the associated sensors are installed, are working properly, and can be managed. To that end, ARM is integrated with the main satellites, so that it can unequivocally verify the proper functioning of the device and issue a certificate automatically.
- Types of satellite audits:
Remote: using our SIGA® platform
On site: with our motorized personnel
Our satellite audit service has been certified by the main insurance companies. Consult with your Insurance Broker.
GPS Active monitoring/ Virtual Escort
Depending on the exposure to risk, a transit may require a dedicated operator to monitor the entire transit, so that early alerts can be triggered in the event of an anomaly (detours, unauthorized stops, panic, loss of positioning/ communication, accidents, among others). Our operators receive training on a regular basis to be able to correctly manage any type of incident: robberies/ theft due to carelessness, robberies during home deliveries, gang robberies, incidents during stops/ overnight stays/ unloading.
Our GPS active monitoring/ virtual escort service includes conducting a satellite audit before the transit starts. A transit schedule is agreed with the driver based on the roadmap determined, which is monitored during the entire transit.
In the event of an anomaly and an alarm being triggered, the relevant security protocol is activated, which may include:
- Verifying the occurrence of the incident
- Confirming the situation with the driver
- Declaring an emergency, in which case the company’s own security staff is deployed, together with private security contractors, and the emergency is reported to the public security and law enforcement authorities.
All the events and actions taken are included in a historical record which serves as the basis for event reports.
- Types of monitoring services:
- End-to-end.
- Random audits + automatic attention to emergency alarms. This is an ideal service for logistics operators that have multiple satellites in their fleet.
- Mobile monitoring: this involves following the driver with a smartphone (Android), obtaining traceability of positions and actions (in position, start, delivery, end of transit, panic, emergency call).
- If it was necessary to control risk of damage, according to the GPS/GPRS device and sensors installed in the cargo vehicle, we can monitor cold-related events (excess or deficiency regarding pre-determined values), pneumatic pressure and maximum speed.
Our GPS active monitoring/ virtual escort service has been certified by the main insurance companies. Consult with your Insurance Broker.
Convoy Custody / Escort Service
Higher risk transits require Convoy Custody/Escort Services (armed or unarmed) as a preventive measure (essentially as a deterrent factor). It is quite common to verify there are providers that are not duly authorized, which leads to the need for a contingency in the event of insured claims that require this service as a security measure.
(*) We hold our client harmless of any joint claim by our providers or their subsidiaries. ARM signs an SLA agreement with each of them, including a hold harmless clause. Besides our equity and financial solvency, we have an E&O coverage in the amount of USD 1,000,000.
Our convoy custody / escort service has been certified by the main insurance companies. Consult with your Insurance Broker.
Recurrence / Investigations
Scope of the investigation:
- Analysis of the information about the driver, driving partner and vehicle
- Analysis of the historical satellite record of the transit
- Field activities
- Taking down written statements
- Interaction with the public law enforcement authorities (District Investigation Department, Argentine Federal Police, Buenos Aires City and Provincial Police, Criminal Investigation Authorities, as relevant), and the Prosecutor’s Office.
In the event of suspicion of collusion of the persons identified, after their written authorization, we can conduct a polygraph test (lie detector).
If necessary, we use drones to recognize and collect evidence.
SIGA®
Leader in Risk Management in Argentina and Chile
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