The document discusses different methods for assessing risk using SIRE reports, including counting observations, potential risk, assessed risk, and residual risk, with each method taking into account various factors like the content and significance of observations, corrective actions, and past performance. It also examines challenges with measuring experience and competence through tools like the VIQ Experience Tool and separate charterer requirements. Overall, the document considers how to best evaluate risk and performance using SIRE reports and other metrics.

1. Risk
and
Performance
David Savage
Tanker Shipping & Trade Conference and
Awards, 15-16 November 2016,

2. Risk Assessment Using SIRE Reports
1. Count of Observations
2. Potential Risk
3. Assessed Risk
4. Residual/Final Risk

3. 1. Count of Observations
o Major Industry KPI
o Quick but basic
o Observation content not taken into
account
o Numerous Observations will result in the
vessel being rated “Technical Hold”
o Technical Hold may have negative
commercial impact

4. 2. Potential Risk
o Used by charterers with Auto-Vetting systems
o Each SIRE VIQ question is pre-set with potential
Low, Med, High risk score
o Risk value based on question topic and
attendant risk possibilities
o Every Observation automatically adjusted with
the pre-set risk value
o No account taken of the significance of the
Observation words

5. 3. Assessed Risk
o
Observations manually reviewed
o
Potential Risk values adjusted if appropriate
o
High Potential Risk question associated a trivial
observation may justify reducing the risk setting.
o
Low Potential Risk question associated with a high risk
observation may justify increasing the risk setting
o
Result is Assessed Risk

6. 4. Residual Risk
o “Fine Tuning” adjustment takes into
account…
o …nature of the Observation
o …root cause
o …corrective actions
o …preventative actions
o …was the same observation made
previously?
o …final assessment to determine residual
risk.

7. Contractor to attend at Ulsan 9 Mar 2016

8. Filtering.
Was the Observation…
o Preventable?
o Non-Conformity?
o Low, Medium or High Risk?
o Specific ISM Non-conformance?
o Nature of Non-conformance?
Who has lead
responsibility?
What is remedial action?
What are Target and actual
Close-out dates?
Issue closed-
out

9. Chapter 3 contains 16 questions
None of these ask if the vessel has been operated
safely and efficiently
Experience vs Competence

10. The VIQ Experience Tool –
Easy to access, Easy to measure, but…

11. 40+
Separate
Charterers’
requirements
…not only difficult to comply
with

12. Identifying Experience Non-Compliance

13. Measuring Personnel Performance
History to Assess Competence

14. Experience, Competence and
Past Performance
“The unquantified blend of knowledge,
experience and attitude. But how to measure
at any one moment in time? Knowledge may
grow or leak at the same time that experience
is being accrued, while attitude ... the clear,
consistent ability and temperament to always
practice what has been absorbed ... now that's
a challenge!”
Jim Cripps

15. Oceanfile Marine Ltd
9 Quarantine Hill
Wicklow Town
Co. Wicklow
Ireland
www.oceanfile.com
david.savage@oceanfile.com