Operating a motorcoach company can be as risky as . . .

Well, it really doesnt matter.

Its risky much of the time and learning how to manage that risk can often make the difference between profit and loss, success and failure.

Thats the message Robert Crescenzo, vice president of Lancer Insurance Co., delivered to motorcoach operators attending the annual four-day conference of the California Bus Association last month.

He said learning how to recognize risks of all types high, low and medium is the key to managing them and possibly avoiding disastrous and costly problems from occurring.

"We sometimes are not as good at identifying risks as we are at knowing what to do when it blows up," he emphasized.

Crescenzo, a frequent speaker at motorcoach industry meetings throughout the country, suggested operators develop a simple score sheet to identify the risks involved in each trip they take. And, after recognizing them, carefully assessing and addressing each of them.

Such a game plan, he stressed, can result in fewer accidents and claims and, ultimately, lower insurance premiums.

Crescenzo warned that if operators dont take the time to identity the risks, then someone else will and that someone is likely to be a plaintiff lawyer pursing a claim, or a government regulator performing an audit.

"You need to have a formal procedure for risk identification, someone has to be assigned to do that at your company," he asserted.

He recommended operators create a risk assessment form that someone at the company would fill out for each scheduled charter or tour. The form should include every element of the trip, including driver experience, specific routing, time of day, type of coach, a profile of the passengers, planned stops, possible last minute add-on stops, road surface, weather forecast, parking issues, pressure from riders, length of trip, and load and unload times.

Under the plan, each trip would be checked against each of the risk factors and scored to determine if it should be considered low, medium or high risk. For most low-risk trips, the initial evaluation usually would be enough, while medium-risk trips would have to be reviewed by a company manager, and high-risk trips would require a review by the general manager or the owner of the company.

The reviews would help determine if the right driver, coach and route have been set for the trip and if every possible precaution has been taken to minimize problems.

"Sometimes the simplest trip could be the most high-risk trip," Crescenzo stressed.

He noted, too, that the companys risk evaluator needs to watch for last-minute issues that could increase the risk of a trip. Included among them are additions to a trip requested by passengers, a change in the weather forecast, road detours that require route changes, illness to the assigned driver, and mechanical problems with the bus selected to handle the trip.

"They could be easily missed," he said.

He said red flags should go up, too, when there is a rush to complete a maintenance schedule or make repairs to a bus to have it ready for a scheduled trip, when a larger bus is substituted for a smaller one, and when the routes are changed on repeat trips.

In other areas, Crescenzo emphasized that operators who promise to deliver something to their passengers, need to see that it is done.

"If you say you are going to do something, then do it," he said. "If you say you will be helping a woman off the bus and she falls, a lawyer will be pointing that out."

He also suggested that operators look for positives during the current difficult economic times, including the idea they are likely to find better and more qualified drivers in the job market now who are looking to stay with a company much longer than in the past.

"If you havent found anything positive in the economy, you might be missing a good opportunity," he added.

Additionally, he reminded operators they are responsible for their lab data for drivers even if a third party conducts the drug and alcohol testing; state and federal regulators now are asking companies to produce their ADA reports during compliance reviews; the person who answers the company telephone can be as important in delivering customer service as a driver, and now appears to be a good time to evaluate older coaches to determine if they can be refurbished and remain in the fleet for another year or two.