Occupational Road Risk Management – A Competitive Advantage? Dave Wallington Group Safety Adviser BT

1. Understanding the Risks and the Opportunities Most significant area of people and financial safety related risk for BT. Direct costs c£25m p.a. Direct potential financial payback on bottom line due to the self insurance model Legislative changes increased focus on Driving at Work dictating the need for an effective management system to demonstrate due diligence Increasing pressure on margins and increased competition mean cost control is critical Desire for high performance in all areas of business practice. Behaviour change programmes becoming a standard approach to risk management issues. Globalisation of the business required innovative delivery mechanisms

Creating a healthy and diverse environment where excellence prospers BT People Strategy – Theme 5 Creating a healthy and diverse environment where excellence prospers Woven into the business, a thought-through, logical process. Part of BT People Strategy particularly theme 5 - Creating a healthy and diverse environment where excellence prospers. Altering behaviour. Creating ownership and non-silo mentality - applicable to health and business behaviours. Moving people from a dependence to an interdependence mindset. Placing the effort more on primary engagement - prevention and promotion - than tertiary resolution.

Implementation Framework Level of effort & numbers affected Primary Engagement Promotion/Education Secondary Intervention Prevention 3 levels of moving activity upstream Focus of today on Tertiary Tertiary Resolution React to problems

2. How is it Structured Starting Point At Risk (10%) Medium Risk (70%) Active Intervention Manager or Specialist Led Centrally Funded as an Insurance Programme Starting Point Computer Based Allocated via R2L License funding Medium Risk (70%) Self Teach with Assessment Computer based License funding Low Risk (20%) Voluntary Participation Computer Based License Funding

3. Does Assessment Work? Road Risk Rating / Intervention Participants Collision rate Medium / OMS 13,647 0.20 Low Risk /None Required 2,948 0.00 At Risk Mileage Only / One To One 1,465 0.19 At risk Profile Only /One To One 101 1.75 (9X) At risk Profile Only / On-road 2,236 1.04 (5x) At Risk Profile and Mileage/ On-road and One To One 170 1.34 (7x) Total 20,567 0.28 Cost of Assessment and Online Training less than £10 per head Cost of On-Road Solutions £80-£130 per head

4. Other Considerations/ Developments Communications Programme Driver License Checks O License Protection Driver of the Year (recognition education and publicity) Dynamic profiling using external data sources Potential to use risk profiling in other areas of safety management e.g. work at height Links to new technologies e.g. telematics Improved MIS Possible short cuts reusing existing assessment technology to deliver new programmes e.g. resilience

5. Benefits Year on year incident and vehicle damage cost reductions of about 8% per annum over the past few years. Friends and Family Programme External Recognition (Awards, publicity and recognition as thought leader in MORR) Cost Savings compared to traditional approaches Developing a management system which offers a realistic defence for criminal prosecutions and management of the regulatory environment Green Impact through training and mileage reduction c£15m saving on bent metal repair over the life of the programme compared to a cash programme cost of c£2.5m in a similar period.

6. Future Initiatives and Developments Discussions ongoing regarding introduction of telematics which may open up other complementary opportunities in safety management notably around duty of care Versions 2 of the profiling tool being phased into the business over the next 3 years Manager MIS now available, Dashboards available soon Correlation of risk profiling data with general safety data Online driver license checks and possible use of violations data for profiling Extending range of Risk Coach and Risk Foundation modules Simulator technology to enhance user experience in CBT environment Increased focus on behaviours rather than skills SAFED Assessors and Training Measurement of risk potential and safety culture in the organisation

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