Marine Risk Assurance

Lloyds Register - Asia

Risk Assessment
in Shipping Companies

Intertanko Vetting Seminar

Singapore
29th November 2005

Anuj Sahai
Lloyd’s Register Asia, Singapore
 Marine Risk Assurance
Lloyds Register - Asia

Risk Assessment
Do the shipping companies do it well?

Risk Management
Are shipboard risks well managed?
 Marine Risk Assurance

Leading indicators
Lloyds Register - Asia

Tanker trade
Tanker trade
14
14
12.5 12.5
12
>700 m/t

12
'10000 Bn TM and

10
10
9.3 8.8 8.8
Tn TM

88
'10spills

7.8
6.6
6.6
66
Number of

44
3.5
22

00
80's
80's 90's90's PR00's
PR00's

Source: Fearnleys, ITOPF

 Marine Risk Assurance

Leading indicators
Lloyds Register - Asia

100
17
26 SH* share (%)
80 40
49
DH share (%)
60 78
94 End 05, all tankers
built 1982 and earlier
40 83 gone
74
60 End 10, all tankers
49 built 1987 and earlier
20
gone
22
trading beyond 2010
0 6
subject to
1991 1997 End 02 End 03 End 05 End 10 administrations

• 99.99999% of oil is safely delivered.

Source: Intertanko
 Marine Risk Assurance

Leading indicators
Lloyds Register - Asia

Tanker accidents
1000
900
800
Number of accidents

700
600
500
400
300
200
100
0
'90 '94 '98 '02

Source: LMIS, Informa, press, INTERTANKO

 Marine Risk Assurance

Perception
Lloyds Register - Asia

• The risks are well managed.

• Further improvements - only incremental.

• Risk Assessments – why?

 Marine Risk Assurance

Risk Assessment requirements

Lloyds Register - Asia

• Deficiencies

• Critical systems and equipment

• Health risk assessments

• Management of Change

• Near misses
 Marine Risk Assurance

Reality
Lloyds Register - Asia

• IMO / Flag regulated

• Reactive not proactive

• Why fix it, if it ain’t broken?

• Compliance driven
 Marine Risk Assurance

Risk Assessments
Lloyds Register - Asia

• Still thinking about it!

• Let someone else do it!

 Marine Risk Assurance

Why Risk Assessments?

Lloyds Register - Asia

• ISM Code – Implicit

• OCIMF – TMSA

• Manage shipboard risks better

• Continuous Improvements
 Marine Risk Assurance

Suggested Approach
Lloyds Register - Asia

Company
Level

Shipboard Level
 Marine Risk Assurance
Lloyds Register - Asia

Are your assessments

being effective?

• Business or safety performance improvements?

• Can the benefits be measured?

 Marine Risk Assurance

Link Risk Assessment to Performance (KPI’s)

Lloyds Register - Asia

• LTIF

• LTA’s

• Non-budgeted repair costs

• PSC results

• Insurance claims

• To crews! Retention
Satisfaction
 Marine Risk Assurance

Business Management and Risk Management

Lloyds Register - Asia

• Shipboard Risk management is about minimizing the

chance of failure – pure risk

• Effective risk management requires structured risk

assessment as an input
 Marine Risk Assurance

Hazards Identified using Different Approaches

Lloyds Register - Asia

Actual Total Hazards ID from Prescriptive

ID from Structured Risk ID from Unstructured Risk

100

0
 Marine Risk Assurance

A Culture within a Culture

Lloyds Register - Asia

Safety Management
Culture

Risk Based
Culture
 Marine Risk Assurance

Summarize
Lloyds Register - Asia

• Further Training / refresher training

• Continuous Improvement

• Commitment

• Competitive Advantage
 Marine Risk Assurance

Building better business

Lloyds Register - Asia

Working together to improve

business performance