Marine Risk Assurance Lloyds Register - Asia Risk Assessment in Shipping Companies Intertanko...

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Risk Assessment in Shipping Companies

Intertanko Vetting Seminar

Singapore29th November 2005

Anuj SahaiLloyd’s Register Asia, Singapore

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Risk Assessment Do the shipping companies do it well?

Risk ManagementAre shipboard risks well managed?

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a Leading indicators

Tanker trade

6.6

8.8

12.5

0

2

4

6

8

10

12

14

80's 90's PR00's

'10

Tn

TM

Tanker trade

6.6

8.8

12.5

9.3

7.8

3.5

0

2

4

6

8

10

12

14

80's 90's PR00's

'100

00 B

n T

M

a

nd

N

um

ber

of

spil

ls >

700

m/t

Source: Fearnleys, ITOPF

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a Leading indicators

• 99.99999% of oil is safely delivered.

622

6074

83

9478

4940

2617

49

0

20

40

60

80

100

1991 1997 End 02 End 03 End 05 End 10

SH* share (%)

DH share (%)

End 05, all tankers built 1982 and earlier goneEnd 10, all tankers built 1987 and earlier gonetrading beyond 2010 subject to administrations

Source: Intertanko

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a Leading indicators

Tanker accidents

0

100

200

300

400

500

600

700

800

900

1000

'90 '94 '98 '02

Nu

mb

er o

f ac

cid

ents

Source: LMIS, Informa, press, INTERTANKO

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a Perception

• The risks are well managed.

• Further improvements - only incremental.

• Risk Assessments – why?

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a Risk Assessment requirements

• Deficiencies

• Critical systems and equipment

• Health risk assessments

• Management of Change

• Near misses

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a Reality

• IMO / Flag regulated

• Reactive not proactive

• Why fix it, if it ain’t broken?

• Compliance driven

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• Still thinking about it!

• Let someone else do it!

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a Why Risk Assessments?

• ISM Code – Implicit

• OCIMF – TMSA

• Manage shipboard risks better

• Continuous Improvements

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a Suggested Approach

CompanyLevel

Shipboard Level

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Are your assessments being effective?

• Business or safety performance improvements?

• Can the benefits be measured?

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a Link Risk Assessment to Performance (KPI’s)

• LTIF

• LTA’s

• Non-budgeted repair costs

• PSC results

• Insurance claims

• To crews! RetentionSatisfaction

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a Business Management and Risk Management

• Shipboard Risk management is about minimizing the chance of failure – pure risk

• Effective risk management requires structured risk assessment as an input

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a Hazards Identified using Different Approaches

0

100

%

Actual Total Hazards ID from Prescriptive

ID from Structured Risk ID from Unstructured Risk

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a A Culture within a Culture

Safety ManagementCulture

Risk Based Culture

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a Summarize

• Further Training / refresher training

• Continuous Improvement

• Commitment

• Competitive Advantage

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a Building better business

Working together to improve business performance