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 logistical 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 Broker/ Broker and/or Logistics Operator/ Carrier, ARM Services determines the specific RMP for exposure to risk in each operation. RMPs include the main, supplementary and alternative measures to ensure that the logistics flow is not interrupted.
Every RMP comprises the information analyzed with the AssessRisk® risk matrix, and/or resulting from our experience as leaders in Logistics Risk Management. The aspects most frequently assessed are:
- 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.
- Degrees of subcontracting of the logistics operator/ designated carrier.
The decision to implement our RMP has allowed our clients to significantly reduce claims. Our claims event rate (average from 2018 | 2019 | 2020 and up to 30/03/2021) on monitored transits (considering high exposure cargo) has been <0,031 in Argentina and <0.061 in Chile. Even more, 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: GPS Audit/ Monitoring/ Escort | Online Escort/ Convoy Custody/Escort Service.
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 transport 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.
Additionally, the proper functioning of the device helps reduce the risk of infidelity; every GPS/GPRS device maintains traceability (both of positions and events) that allow verifying the veracity of any statement.
Types of satellite audit:
- Remote: with 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/ 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 regular training 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 escort/ active monitoring service includes conducting a satellite audit before the transit starts. A transit schedule is agreed with the driver based on the roadmap, and this is monitored during the entire transit.
In the event of an anomaly, the relevant security protocol is activated, which may include:
- Verify the occurrence of the event.
- Confirm the driver’s situation.
- Declare an emergency, in which case the company’s own security staff, together with private security contractors are deployed, and the emergency is reported to the public security and law enforcement authorities.
All the events and the 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 reaction to emergency alarms.
- This is an ideal service to logistics operators that have multiple satellites 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 damages, 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 escort/ active monitoring service has been certified by the insurance companies. Consult with your Insurance Broker.
ARM Services conducts +18,439 monitoring/ month.
› Convoy Custody/Escort Service
Higher risk transits require (armed or unarmed) Convoy Custody/Escort Service 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.
Our network of providers (*) comprises +17 security companies which, together, total +160 units average/ working day. The companies have all the necessary certifications/ permits required by the authorities relevant to the specific jurisdiction where the services are rendered, whose audit and validation process is automated in SIGA®.
(*) 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 US$ 1,000,000.
Our Convoy Custody/Escort Service has been certified by the main insurance companies. Consult with your Insurance Broker.
› Recurrence/ Investigations
When an attempted theft or robbery occurs, our recurrence/ investigation team intervenes in order to recover the stolen cargo, identify the criminals so that they can later be arrested, and provide information about the event to our clients.
Scope of the investigation tasks covers:
- 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, 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.
