A SAFE PORT MANAGES ITS RISKS
Capt. Stephen Bligh,
Director Maritime Advisory Services
Europe & North Africa,
DNV – an independent foundation

© Det Norske Veritas AS. All rights reserved.

Slide 2
More than 140 years of managing risk
 Det Norske Veritas (DNV) was established in 1864 in Norway
 The main scope of work...
Core competence
Maritime

Defence

Food and beverage

Energy

Transportation

ICT

Managing risk
Ports & terminals

© Det ...
Global Presence

100 countries
300 offices
9000 employees
Local offices

Head office

© Det Norske Veritas AS. All rights ...
..it happens to ports!

© Det Norske Veritas AS. All rights reserved.

6
What are typical port risk scenarios
 Malfunctioning VTS systems
 Explosions and fires

 Blockades of waterways and roa...
Risk assessment is the basis
Resilience
plan

Contingency
Plan
ISO 31000

ISO 28002
ANSI/ASIS SPC 1

ISO 14001
OHSAS 18001...
Qualitative risk management is the traditional approach
Qualitative risk management provides a semi-quantitative approach ...
So; the qualitative approach comes short
Moving from qualitative to quantitative risk analysis enables
quantification of t...
Marine Accident Risk Calculation Tool (MARCS)
DNV’s has developed dedicated risk assessment software
to facilitate Nautica...
What is a management systeem?
 A system of instructions and procedures to manage and improve operational
processes

Polic...
Continuous improvement (the PDCA cycle)
Stakeholders

Stakeholders

Plan
Plan
Assess risk

Act
Plan

Do
Plan

Define next
...
What is resilience
Resilience is the adaptive capacity of an organization in a complex and changing
environment.
Resilie...
Improving resilience
Repair
Continuity
Respond

Availability
Prepare

Incident

100 %

Reduce
likelihood

Reduce
down time...
Examples of resilience actions
 Response procedures available
 Agree on resilience procedures with terminal operators

...
Finding the root causes
 The DNV Loss Causation Model

© Det Norske Veritas AS. All rights reserved.

Slide 17
Immediate causes of accidents (examples)
Substandard acts/practices

Substandard conditions

1.
2.
3.
4.

1. Extreme weath...
Root causes (examples)
Personal factors

Job factors

1. High workload

1. Unclear organizational structures

2. Improper ...
Lack of control
Elements of Control
1. Compliance assurance

9. Risk control

2. Planning and Administration

10. Planning...
Reference projects
 Navigational risk lock complexes Northern Europe
 Nautical safety studies for LNG terminals

 Accid...
Safeguarding life, property
and the environment
www.dnv.com

© Det Norske Veritas AS. All rights reserved.

22
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Capt. Stephen Bligh, Det Norske Veritas: A safe and economic port is about identifying and managing risk

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Capt. Stephen Bligh, Director, Maritime Advisory Services Europe & North Africa, Det Norske Veritas,
The Netherlands delivered this presentation at the 2012 International Harbour Masters Congress – Global Port and Marine Operations in Ireland. The Congress provides a unique forum in which formal Association meetings are combined with a conference and an exhibition - displaying equipment, services and technical developments from throughout the port and harbour sector. The event is held biennially and will next take place on 26-30 May 2014 in Bruges – Ghent, Belgium. Addressing the theme, ‘Safe and smooth access to ports: A challenge’, the 9th IHMA Congress in Belgium will showcase technical and operational breakthroughs together with international case studies on the development and management of modern port and marine operations across the globe. For more information about the congress, please visit the event website: http://www.globalportoperations.com

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Capt. Stephen Bligh, Det Norske Veritas: A safe and economic port is about identifying and managing risk

  1. 1. A SAFE PORT MANAGES ITS RISKS Capt. Stephen Bligh, Director Maritime Advisory Services Europe & North Africa,
  2. 2. DNV – an independent foundation © Det Norske Veritas AS. All rights reserved. Slide 2
  3. 3. More than 140 years of managing risk  Det Norske Veritas (DNV) was established in 1864 in Norway  The main scope of work was to identify, assess and manage risk – initially for maritime insurance companies © Det Norske Veritas AS. All rights reserved. Slide 3
  4. 4. Core competence Maritime Defence Food and beverage Energy Transportation ICT Managing risk Ports & terminals © Det Norske Veritas AS. All rights reserved. Automotive Finance Slide 4 Health care
  5. 5. Global Presence 100 countries 300 offices 9000 employees Local offices Head office © Det Norske Veritas AS. All rights reserved. Slide 5
  6. 6. ..it happens to ports! © Det Norske Veritas AS. All rights reserved. 6
  7. 7. What are typical port risk scenarios  Malfunctioning VTS systems  Explosions and fires  Blockades of waterways and roads - traffic congestion - accidents - terrorist attacks  Damages to locks and other critical assets  Long lasting power failure  Hurricanes and storms  Flooding and tsunamis  Nuclear or chemical contamination  Volcanic eruptions © Det Norske Veritas AS. All rights reserved. 7
  8. 8. Risk assessment is the basis Resilience plan Contingency Plan ISO 31000 ISO 28002 ANSI/ASIS SPC 1 ISO 14001 OHSAS 18001 Operating procedures ISO 9001 ISO 14001 OHSAS 18001 Analyse © Det Norske Veritas AS. All rights reserved. Prevent Respond 8 Recover
  9. 9. Qualitative risk management is the traditional approach Qualitative risk management provides a semi-quantitative approach where criticality is measured as the product of probability of occurrence and consequence Risk assessment Assess probability and consequence Safety goals 1 4 2 3 Probability Low Medium High Risk identification Risk ranking 1 Rank individual risks Risk Criticality 4 2 Critical 4 Critical 3 3 1 Significant 2 Negligible Action Not acceptable, initiate actions Not acceptable, initiate actions Acceptable, monitor Acceptable Low Medium High Consequence Individual risks Critical (high priority) Significant (medium priority) Negligible (low priority)  Risks with impact on safety are identified  Typical goals are avoiding casualities, cost, interruptions, loss of reputation… © Det Norske Veritas AS. All rights reserved.  For each goal the risks are assessed with respect to probability of occurrence and consequence Slide 9  A risk’s position in the probability-consequence matrix indicate what risk management strategy is required © Det Norske Veritas AS. All rights reserved
  10. 10. So; the qualitative approach comes short Moving from qualitative to quantitative risk analysis enables quantification of total risk exposure for all quantitative project objectives Estimate the total risk exposure  Estimate the total risk exposure, i.e. the aggregate effect from all underlying risk & uncertainties  View the full probability distribution (not only a single point estimate)  Quantify effect of interdependencies among risks Rank mitigating action in terms of risk-reward  Handle interdependencies between risks  Assess the effect of mitigating actions  Ensure mutual exclusive and collectively exhaustive risk representation (MECE)  Rank actions based on risk-reward Identify and assess the effect of the major risk and uncertainty drivers E(x) Objective P90 R1 Objective Drivers Objective # risks © Det Norske Veritas AS. All rights reserved. R1 R2 R1: independent R2: only if R1 R3: influence all R3 Assumes Objective independency between single risks R3 R2 A3 A1 Pre-action Post-action A2 Objective Net effect R Pre-action Post-action R Slide 10
  11. 11. Marine Accident Risk Calculation Tool (MARCS) DNV’s has developed dedicated risk assessment software to facilitate Nautical Safety Risk studies based on real-time data Raw Data Sources 1 Lloyd's Casualty Reports 2 Lloyd's Casualty Database 3 World Casualty Statistics 4 Maritime Casualties 5 ILU Casualty Return 6 Countryman & McDaniel Daily International Vessel Casualties Database 7 TANKER 8 CADA 9 DAMA 10 NOAA Oil Spill Case Histories 11 ETC Tanker Spill Database © Det Norske Veritas AS. All rights reserved. 11
  12. 12. What is a management systeem?  A system of instructions and procedures to manage and improve operational processes Policy What do we want to be? Control How do we master and continuously improve the system? Proces Procedures Who does what when Instructions © Det Norske Veritas AS. All rights reserved. How Slide 12
  13. 13. Continuous improvement (the PDCA cycle) Stakeholders Stakeholders Plan Plan Assess risk Act Plan Do Plan Define next issues Define solution Check Plan Verify Implementation Requirements © Det Norske Veritas AS. All rights reserved. Managed risk 13
  14. 14. What is resilience Resilience is the adaptive capacity of an organization in a complex and changing environment. Resilience also describes the capability of an organization to prevent or resist being affected by an event or the ability to return to an acceptable level of performance in an acceptable period of time after being affected by an event. Resilience means the capability of a system to maintain its functions and structure in face of internal and external change and to degrade gracefully when it must © Det Norske Veritas AS. All rights reserved. 14
  15. 15. Improving resilience Repair Continuity Respond Availability Prepare Incident 100 % Reduce likelihood Reduce down time Reduce consequence Time © Det Norske Veritas AS. All rights reserved. 15
  16. 16. Examples of resilience actions  Response procedures available  Agree on resilience procedures with terminal operators  Agree priority position with crane rental services  Agree priority position with dredging company  Agree priority position of inland (tank) barges  Ensure floating lifting capacity available  Agree loan/rent of assets from other ports  Etc. © Det Norske Veritas AS. All rights reserved. 16
  17. 17. Finding the root causes  The DNV Loss Causation Model © Det Norske Veritas AS. All rights reserved. Slide 17
  18. 18. Immediate causes of accidents (examples) Substandard acts/practices Substandard conditions 1. 2. 3. 4. 1. Extreme weather conditions 2. Inadequate warning system Failure to follow procedures/instructions Failure to identify hazard Operating equipment without authority Improper loading 5. Improper lifting 6. 7. 8. 9. 10 Using incorrect/improper material Failure to secure Making critical HSEQ devices inoperative Use of defective tools/equipment/device Failing to use personnel protective equipment. 3. Fire and explosion 4. Temperature extremes 5. Inadequate guards or barriers 6. Defective tools/equipment or materials 7. Inadequate housekeeping 8. Inadequate ventilation 9. Inadequate layout of workspace 10. Misplaced/loose objects/dropped objects 11. Slippery/rough floor © Det Norske Veritas AS. All rights reserved. Slide 18
  19. 19. Root causes (examples) Personal factors Job factors 1. High workload 1. Unclear organizational structures 2. Improper motivation 2. Inadequate leadership 3. Lack of knowledge 3. Inadequate supervision/coaching 4. Lack of skill 4. Inadequate maintenance 5. Inadequate capability 5. Inadequate tool/equipment/ 6. Stress 6. Excessive wear and tear 7. Inadequate work procedure/standard © Det Norske Veritas AS. All rights reserved. Slide 19
  20. 20. Lack of control Elements of Control 1. Compliance assurance 9. Risk control 2. Planning and Administration 10. Planning and Administration 3. Risk evaluation 11. Contractor management/Purchasing 4. Leadership 12. Emergency preparedness 5. Human resources 13. Learning from events 6. Project management 14. Risk monitoring 7. Training and Competence 15. Results and Review 8. Communications and Promotion © Det Norske Veritas AS. All rights reserved. Slide 20
  21. 21. Reference projects  Navigational risk lock complexes Northern Europe  Nautical safety studies for LNG terminals  Accident investigation and feasibility study fast ferry service in port area  Emergency plan for one of Asians major ports  Improving shipping safety in coastal waters  Environmental risk assessments for a large number of ports  Shipping traffic and tug availability  Nautical safety studies for a large number of platforms and wind parks  Environmental Quantitative Risk Assessment Methodology Development  etc. © Det Norske Veritas AS. All rights reserved. Slide 21
  22. 22. Safeguarding life, property and the environment www.dnv.com © Det Norske Veritas AS. All rights reserved. 22

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