The contribution of risk management in ship management: The case of ship collision

• A ship’s collision may cause excessive regulatory and commercial implications for a ship operator.
• A methodology is proposed for evaluating economic burden generated to a ship operator in case of a collision incident.
• A model is developed to assist the ship operator in adopting risk management as part of his management system.

Ship operators are developing their business in a competitive and highly regulated industry. For ship operators is important to utilize management systems in reducing potential threats to shipboard crew and cargoes carried. This paper enhances the risk management principles in respect to financial damages related to a ship collision. A methodology is proposed involving a performance management system to measure the expected costs and benefits of a ship’s collision caused to its ship operator. As essential parts of the research methodology, Fuzzy Sets and Analytic Hierarchy Process (AHP) are referred to design scorecards, which identify key points for accident prevention on board ships. The ship operators may use the results in evaluating their management systems through taking into account the economical burden that will be generated to ship operators in case of a collision incident. In this paper, the expected benefits of risk management, the principle root causes and consequences of bulk carriers collisions are discussed.

The contribution of risk management to avoid economical disasters due to a ship’s collision.Figure optionsDownload as PowerPoint slide