What is Risk Assessment for Ships? “Safety management objectives of the company should establish safeguards against all identified risks” so has it been stated in the paragraph of the ISM Code (International Safety Management Code). However, this does not determine any particular approach to the risk management theory, and it is for the company itself to choose methods appropriate in accordance with its organizational structure, its ships and trades. The methods could vary accordingly but how ever more or less formal they are, they should be well organized and planned if assessment and responses are meant to be completed and act effectively, and also the entire exercise should be documented in drafts or amendments so as to provide evidence of the decision-making process.
ISO 8402:1995 / BS 4778 define risk management, which includes maritime risk assessment as: “The process whereby decisions are made to accept a known or assessed risk and/or the implementation of actions to reduce the consequences or probability of occurrence.”
The Marine Risk Assessment Process
Basically the risk assessment process is concerned with observing the company’s activities and operations, identifying what might go wrong, and deciding upon what should be done in order to prevent it. The areas pertained to are:
• Identification of hazards
• Assessment of the risks concerned
• Application of controls to reduce the risks
• Monitoring of the effectiveness of the controls
The identification of hazards is most important since in determines the course of actions to be followed thereafter. Observation of the activities helps in achieving perfect accuracy and completeness which again can only be accomplished by a systematic process. For this it is necessary to have professional training and instruction to assure its application in a thorough and consistent manner. Also it is important to keep in mind that hazards must not be confused with incidents whereas incidents must not denote consequences.
The marine risk assessment helps in evaluation of each hazard associated with the risks in terms of the likelihood of harm and its potential aftermath. This assists in enabling the company to imply priorities and exploit its scarce resources for greatest effect.
While settling with the application of controls, it is essential to take the frequency of the activity into account so that a potential moderate risk may be more important to be addressed upon than a rare but substantial risk.
The most relevant risks to monitor are:
• Health and safety issues of individuals involved directly or indirectly in the activity, or those who may be otherwise affected
• Property of the company and others
• The environment

The different types of marine insurance can be elaborated as follows:
Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture on the ship. This type of marine insurance is mostly taken out by the owner of the ship to avoid any loss to the vessel in case of any mishaps occurring.
Machinery Insurance: All the essential machinery are covered under this insurance and in case of any operational damages, claims can be compensated (post survey and approval by the surveyor).
The above two insurances also come as one under Hull & Machinery (H&M) Insurance. The H&M insurance can also be extended to cover war risk covers and strike cover (strike in port may lead to delay and increase in costs)
Protection & Indemnity (P&I) Insurance: This insurance is provided by the P&I club, which is ship owners mutual insurance covering the liabilities to the third party and risks which are not covered elsewhere in standard H & M and other policies.
Protection: Risks which are connected with ownership of the vessel. E.g. Crew related claims.
Indemnity: Risks which are related to the hiring of the ship. E.g. Cargo-related claims.
Liability Insurance: Liability insurance is that type of marine insurance where compensation is sought to be provided to any liability occurring on account of a ship crashing or colliding and on account of any other induced attacks.
Freight, Demurrage and Defense (FD&D) Insurance: Often referred to as “FD&D” or simply “Defense,” this insurance provides claims for handling assistance and legal costs for a wide range of disputes which are not covered under H&M or P&I insurance.
Freight Insurance: Freight insurance offers and provides protection to merchant vessels’ corporations which stand a chance of losing money in the form of freight in case the cargo is lost due to the ship meeting with an accident. This type of marine insurance solves the problem of companies losing money because of a few unprecedented events and accidents occurring.
Marine Cargo Insurance: Cargo insurance caters specifically to the marine cargo carried by ship and also pertains to the belongings of a ship’s voyages. It protects the cargo owner against damage or loss of cargo due to ship accident or due to delay in the voyage or unloading. Marine cargo insurance has third-party liability covering the damage to the port, ship or other transport forms (rail or truck) resulted from the dangerous cargo carried by them

  what we do:
• Different Hazard and operability analysis (HAZOP) such as:
o Early procedure HAZOP
o Final procedure HAZOP
o System HAZOP
• Facilitation of risk assessment workshops
• Reviews, checklist evaluations and gap-analysis
• Quantitative and semi-quantitative risk assessment
• Dropped object studies
• Competence assessment and training need analysis
• Safe job analysis (SJA)

Helping you to reduce your losses:
Our marine risk engineering specialists can tailor a loss prevention program to help you manage risks and minimize losses. A typical program may include:
•Logistics assessments are designed to help you protect your assets and control losses while they are in transit. This includes an analysis of risks to goods in intermediate storage, conveyance analysis, e.g. vessel quality analysis, as well as handling procedures.
•Site risk assessments are designed to help you protect your assets while they are in storage. This protocol assesses the physical attributes of the location and reviews inventory management and distribution, including an analysis of loading and delivery procedures.
•Post-loss assessments are designed to analyze trends and propose loss lessons with advice and recommendations to help reduce either the frequency or severity of future incidents. You receive a comprehensive presentation outlining the findings and recommendations for future loss prevention. The survey establishes the priorities for reducing the key risks and feeds into a management action plan.
•Project Cargo risk services can include analysis and advice on:
– the risk posed by a project
– sourcing of equipment
– transport routes and location of the project
– outlining modules that are considered critical due to their value and replacement time
– identifying potential risk areas within the supply chain where this may have an impact on case, e.g. port blockages, strikes, transport routes or vessel capabilities.

  •Our consultancy and bespoke services are designed to help meet your specific needs and can include:
– specialized assessment and investigation – where there is a high need such as packaging or transportation issues, high value and time sensitive loads
– procedural development – we can work with you to develop or enhance your existing procedures and service level agreements
– provision of Risk Insights – You can request particular research or benchmarking activities specific to your organization or industry sector.