This document outlines the objectives and content of a risk assessment and management course. The course covers topics like risk management and the ISM Code, hazard identification, risk assessment, analysis and management. It aims to meet the requirements of the ISM Code section 1.2.2.2 and TMSA Element 9, which relate to risk assessment and management. The document also provides an overview of the Tanker Management and Self Assessment (TMSA) guidelines and its 12 elements, including Element 9 on risk assessment and management.

1. 1
RISK ASSESSMENT
AND
MANAGEMENT COURSE

2. 2
RISK ASSESSMENT
AND MANAGEMENT
COURSE OBJECTIVES
 The Course meets the requirements of :
- ISM Code section 1.2.2.2; and
- TMSA Element 9.
 The Course further covers the following :
- Introduction to Risk Assessment and Management;
- Risk Management and the ISM Code;
- Hazard and its Identification;
- Risk Matrix, Risk Ranking, Risk Criteria;
- Risk Assessment, Analysis and Management;
- Ship’s Safety Management System and Safety Culture.

3. 3
ISM Code
Section 1.2.2
1.2.2 Safety management objectives of the Company should,
inter alia:
.1 provide for safe practices in ship operation and a safe
working environment;
.2 assess all identified risks to its ships, personnel and the
environment and establish appropriate safeguards; and
.3 continuously improve safety management skills of
personnel ashore and aboard ships, including preparing for
emergencies related both to safety and environmental
protection.

4. 4
TANKER MANAGEMENT AND
SELF ASSESSMENT (TMSA)
A Brief Introduction
TMSA : A BEST PRACTICE GUIDE FOR SHIP OPERATORS
 First published in 2004, revised in June 2008 (TMSA2).
 Encourages ship operators to achieve high standards of
management and continuous improvement and provides
guidance on what OCIMF believes to be current best
practice.
 Provides a comprehensive tool to help ship operators
measure and improve their safety management systems
and encourages the assessment of safety management
systems against listed key performance indicators as a
guide and measure of best practice.

5. 5
Elements of T M S A
 The 12 elements of TMSA are as follows :
1. Management leadership and accountability
2. Recruitment and management of shore based
personnel
3. Recruitment and management of ship personnel
4. Reliability and maintenance standards
5. Navigational safety
6. Cargo, ballast and mooring operations

6. 6
Elements of T M S A (Contd.)
7. Management of change
8. Incident investigation and analysis
9. Safety management
10. Environmental management
11. Emergency preparedness and contingency
12. Measurement, analysis and improvement.
 TMSA element 9 is in particular applicable to this
course as it covers the requirement of,
“Risk Assessment and Management”.

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Risk Assessment and Management

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What is risk ?
 Risk is the likelihood that an undesirable event will occur and lead to severe
consequences within a specified timeframe
 It isthe combination of the likelihood and the severity of the consequence.
Risk = Likelihood x Consequence

9. 9
What is a Hazard ?
 A hazard is anything that may cause harm, such as chemicals,
electricity, working from ladders, an open drawer
• A hazard is any source of potential damage, harm or adverse
health effects on something or someone under certain
conditions at work.
OR IT CAN BE DEFINED AS

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What is Risk Assessment ?
• “Risk Assessment” is intended to be a careful examination of
what, in the nature of operations, could cause harm, so that
decisions can be made as to whether enough precautions have
been taken or whether more should be done to prevent harm.
• The aim is to minimise accidents and ill health on board ship.
• The assessment should first establish the hazards that are
present at the place of work and then identify the significant
risks arising out of the work activity.

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The Risk Management process
Step 1. Identifying hazards with the process
• The identification of hazards is the first and most important
step since all that follows depends on it
• It must be complete and accurate, and should be based, as far as
possible, on observation of the activity.
• To help you to identify hazards - Walk around the work place,
talk to workers, refer manufacturers instructions, look back at
the history, include experience and age of people doing the work

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The Risk Management process
(Contd.)
Step 2. Evaluating risks arising out of the hazard
• The risks associated with each hazard are evaluated in terms of
the likelihood of harm and the potential consequences.
• How likely it is that a hazard will cause harm
• How serious that harm is likely to be
• How often (and how many) workers are exposed.
• The next diagram slides is to help estimate the risk

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The Risk Management process
(Contd.)
The combination of likelihood and consequence is normally
illustrated by way of a RISK ESTIMATOR

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The Risk Management process
(Contd.)
Step 3. Deciding on preventive action
This can be done, for instance, by:
Things to be considered are as follows
1. Whether the risks are preventable or avoidable? Is it
possible to get rid of the risk?
 considering whether the task or job is necessary,
 removing the hazard,
 using different substances or work processes.

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The Risk Management process
(Contd.)
2. If risks are not avoidable or preventable, how risks could be
reduced to a insignificant level
This can be done, for instance, by:
 combating the risk at source (maybe don’t do the job or do differently)
 adapting the work with regards to – design of workplace or choice of
work equipment (e.g. position work equipment so that it can be
accessed without awkward stretching)
 substituting the dangerous by the non-dangerous or the less dangerous
 giving collective protective measures priority over individual
protective measures( eg instead of using individual dust masks, remove
processes that eliminate the dust)
 giving appropriate instruction to workers

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The ALARP principle is that the residual risk shall be
as low as reasonably practicable

17. 17
The Risk Management process
(Contd.)
Risk control measures

18. 18
The Risk Management process
(Contd.)
Step 4. Taking action
After the preventive and protective measures have been
identified, the next step is to put them in place effectively.
A plan should be developed specifying:
 the measures to be implemented
 the means allocated like time, expenses etc
 who does what and when
 when actions are to be completed

19. 19
The Risk Management process
(Contd.)
Risk assessment should not be a once-and-for-all activity. The
assessment needs to be reviewed and revised, as necessary, for
a number of reasons, including
Step 5. Monitoring and reviewing
• the degree of change likely in the work activity
• such as a new process, new equipment or materials, change of
work organisation,
• Should be reviewed regularly and in the light of experience, like an
increase in the number of accidents or hazardous occurrences
which may indicate that previously implemented controls are no
longer effective

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PEOPLE and Risk Assessment
• It is important to remember the subjective nature of risk perception
• This divergence in responses to risk arises from differences in experience,
training and temperament, and it can be considerable
• It is essential that operational staff be involved in the assessment process.
Because the judgements of the people engaged in an activity may not
coincide with those of the assessors
• Different levels of experience and training mean that the hazards and risks
associated with an activity can vary greatly with the people who carry it
out, and conditions may be very different from those prevailing at the
time of the assessment.

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RISK ASSESSMENT
AND MANAGEMENT
 In the following slides is an example from a
Shipboard SMS Manual on Risk Assessment and
Management.

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RISK MANAGEMENT
ON BOARD
 Purpose
To ensure that all shipboard tasks are carried out
safely and efficiently in order to achieve our
goal of zero incidents by establishing
safeguards against all identified risks.
 Responsibility
Master and Senior Officers
Designated Person Ashore
Senior Management Ashore

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INTRODUCTION TO RISK
MANAGEMENT ON-BOARD
 The best safeguard against accidents on-board is a genuine safety
culture.
 That is, awareness and constant vigilance on the part of all those
involved, and the establishment of safety as a permanent and
natural feature of organizational decision-making.
 Safety is the freedom from unacceptable risk or the condition where
risks are managed to acceptable levels.
 Safety is not something that can be absolutely guaranteed.
 How we manage risk on-board, or what we do to prevent accidents
from occurring in the first place, must be the logical and necessary
focus of our endeavours to achieve a genuine on-board safety
culture.

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INTRODUCTION TO RISK
MANAGEMENT ON-BOARD
 Risk Management may be defined as :
“The process whereby decisions are made to accept a
known or assessed risk and/or the implementation of
actions to reduce the consequences of the occurrence.”
 IMO defines risk as :
“ The combination of the frequency and the severity of
the consequence.”
(MSC Circ.1023/MEPC Circ.392)
 In other words, risk has two components : likelihood or
probability of occurrence and severity of the
consequences.

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INTRODUCTION TO RISK
MANAGEMENT ON-BOARD
 The Risk Management Process involves the
following activities :
- Identification of hazards
- Assessment of the risks associated with those
hazards
- Evaluation of risk reduction or risk elimination
measures
- Implementation of risk reduction or risk
elimination measures.

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INTRODUCTION TO RISK
MANAGEMENT ON-BOARD
 Risk Assessment is the process of estimating the likelihood
of an accident occurring, estimating the magnitude of the
consequential loss and making a judgement about the
significance and tolerability of the risk. Risk is a function
of both frequency and consequence and both are equally
important in the risk assessment process.
 Workplace risk involves risk of accident to personnel due
to health and safety hazards during activities in the work
place. Typical consequences may be damage to health,
injury or death.
 Accidents in the work place can also involve damage to
property, the environment and damage to the reputation of
the company.

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RISK MANAGEMENT
AND THE ISM CODE
 Paragraph 1.2.2.2 of the ISM Code states,
“assess all identified risks to its ships, personnel and the
environment and establish appropriate safeguards”.
 Although there is no further, explicit reference to this general
requirement in the ISM Code text, risk management of one form
or another is essential to compliance with most of its clauses.
 It is important to recognize that the company is responsible for
identifying the risks associated with its particular ships,
operations and trade. It is no longer sufficient to rely on
compliance with generic statutory and class requirements and
with general industry guidance.

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RISK MANAGEMENT
AND THE ISM CODE
 The ISM Code does not specify any particular approach to the
management of risk, and it is for the company to choose methods
appropriate to its organizational structure, its ships and its trades.
The methods may be formal, but they must be systematic if
assessment and response are to be complete and effective, and the
entire exercise should be documented so as to provide evidence of
the decision-making process.
 Although it is not often referred to as such, the development and
implementation of a documented Safety Management System is an
exercise in risk management. The drafting or amendment of
written procedures involves looking at the company’s activities
and operations, identifying what could go wrong, and deciding
what should be done to try to prevent it. The documented
procedures are the means by which the controls are applied.
 It is therefore paramount that all Masters and Senior Officers
demonstrate fluency in and strict compliance with the
company’s Safety Management System.

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MANAGING JOB SAFETY
ON-BOARD
 All jobs on board are considered hazardous and are to
undergo a Risk Assessment.
 This includes all routine and non-routine jobs.
 Risk Assessment is the process of estimating the
likelihood or probability of an accident occurring,
estimating the severity or magnitude of the
consequential loss and making a judgement about the
tolerability or significance of the risk.
 It is important to note that many accidents occur during
routine jobs.

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MANAGING JOB SAFETY
ON-BOARD
 Analysis of previous accidents that have occurred during routine
jobs show that in many cases the root cause was identified as one
or more of the following :
- No formal Risk Assessment had been completed
- No Job Hazard Analysis had been completed
- Fatigue
- Non-compliance with company SMS procedures, industry best
practice guidelines and / or international regulations
- No stop card issued. (Work continued even though somebody
saw something was wrong)

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MANAGING JOB SAFETY
ON-BOARD
 Contd.
- Taking shortcuts – due to commercial pressure or other
reasons
- PPE was not worn
- Complacency – because the task was routine and
nothing had gone wrong before.
 The above mentioned items can be described as Key
Safety Behaviours. (What we do or how we do it)
 If the above ‘Behaviours’ or work practices are
considered before and/or during all jobs then we can
improve our accident statistics.

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RISK ASSESSMENT AND
JOB HAZARD ANALYSIS
 Risk Assessment involves :
- Identification of hazards
- Assessment of the risks associated with those hazards
- Evaluation of risk reduction or risk elimination measures
- Implementation of risk reduction or risk elimination measures.
In practical terms, a risk assessment is a thorough look at our
workplace to identify those things, situations, processes, etc. that
may cause harm, particularly to people.
After identification is done, we evaluate how likely and severe the
risk of harm may be and then decide what measures should be put
in place to effectively prevent or control the harm from
happening.

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RISK ASSESSMENT AND
JOB HAZARD ANALYSIS
Contd.
- Risk Assessment may be formal or informal
depending on the circumstances of the case
- Risk Assessment need not be complicated and/or time
consuming.
Risk Assessment may be :
- Formal documented Risk Assessment including Job
Hazard Analysis
- Formal documented Risk Assessment without a Job
Hazard Analysis

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RISK ASSESSMENT AND
JOB HAZARD ANALYSIS
Contd.
- Toolbox meeting at the work site
- Meeting to review and discuss an existing
documented Risk Assessment
- STOP – TAKE 5. An informal Risk Assessment
during the work
- Daily Work Meeting
- Controlled by Permit to Work
(e.g. Enclosed space entry).

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RISK ASSESSMENT AND
JOB HAZARD ANALYSIS
 Why is risk assessment important ?
 How do you do a risk assessment ?
 How are the hazards identified ?
 What are the main ways to control a hazard?
 What is meant by elimination ?
 What are examples of engineering controls ?
 What are examples of administrative
controls?

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RISK ASSESSMENT AND
JOB HAZARD ANALYSIS
 Work Practices
 Education and Training
 Emergency Preparedness
 Personal Protective Equipment (PPE) as a
hazard control or control measure
 Why is it important to review and monitor
your assessment ?
 Job Hazard Analysis
 Documentation and Record Keeping.

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Extract from SCI’s SMS on
Risk Assessment and Management
I.8.9 Procedure for Assessment and
Management of Risk
 Risk is the combination of the likelihood and
consequence(s) of a specified hazardous event
occurring.
What can go
wrong?
How likely is
it?
What are the
impacts?
Risk
Understanding

38. 38
Risk Assessment Procedures
 The Company recognises and practises the use of risk assessment
to identify hazards and minimise risks for shipboard operations
involving safety of ships, personnel on board and protection of
environment. It is considered that:
 Risk assessment imposes a discipline on the shipboard personnel
to consider safety aspect in detail during an operation, to think
about what might go wrong and what is available to prevent or
mitigate same and to consider the relevance of previous accident
experience.
 Risk assessment, when done properly, will yield an
understanding and useful insights into ways that safety might be
improved.
 This process may provide reassurance that an important and
reasonably practical step has been taken to anticipate what might
go wrong and what could be done to prevent it.

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Risk Assessment and
Management Policy
The Company shall endeavour
to address and reduce the risks to a level
As Low As Reasonably Practicable
(ALARP)
having regard to its own
Safety, Occupational Health &
Environment Protection Policy.

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Definitions
 Hazard: Source or situation with a potential to
harm in terms of injury or ill health, damage to
property/workplace/environment or a
combination of these.
 Risk: Combination of the likelihood and
consequence(s) of a specified hazardous event
occurring e.g. grounding, collision, fire,
explosion, foundering, casualty etc.
Risk = Probability X Consequence

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Definitions
 Risk Assessment: Process of identifying
hazards and evaluating risks to health and safety
arising from these hazards taking account of the
existing risk controls (or, in the case of a new
activity, the proposed risk controls).
 Risk Controls: Workplace precautions, for
example, physical safeguards, containment of
airborne contaminants and noise, safety systems
of work, competency, and personal protective
equipment.

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Definitions
 Tolerable Risk: Risk at a level that can be
accepted provided risk controls are
implemented to reduce risk as low as is
reasonably practicable (ALARP).
 Acceptable Risk: Risk that is regarded as
insignificant either as it stands, or as a result of
risk controls.

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Risk Assessment Process
Risk Assessment Process includes:
 Hazard or Risk Identification i.e. to recognise
the existence of some kind of hazard and try to
define its characteristics.
 Risk Estimation i.e. scientific determination of
risk characteristics usually providing a
quantitative measurement.
 Risk Evaluation i.e. a reasonable estimate of
the risk’s scope and acceptance.

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Risk Management Process
Risk Management Process includes:
 Making a decision about accepting or revising
such risks.
 Restricting and confining the chances of risks
within acceptable limit at a reasonable cost.

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Risk Assessment
 Risk assessment need not be complicated.
 There are no fixed rules about how risk assessment
should be undertaken.
 The assessment will depend upon type of ship, nature
of operation and the type and extent of hazard and
risk.
 The assessment is not expected to cover risks which
are not reasonably foreseeable.
 A suitable risk assessment shall be made for safety of
shipboard personnel in the normal course of their
duties, arising directly from the work activity and
which has a potential to harm the persons undertaking
the work.

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Elements of Risk Assessment
Work Activity
Determine the
tolerability of the risks
Prepare Risk Control Action Plan to
improve risk controls as necessary
Ensure risk assessment and controls
are effective and up-to-date
Estimate Risk
Review adequacy of Action Plan – confirm
whether the risks are now tolerable
Identify hazards to ship,
personnel and environment

47. 47
When is Risk Assessment
to be carried out ?
 Since risks are associated with almost every activity,
risks which are considered trivial and where no further
precaution is required, need not be assessed.
 Risk assessment shall be carried out in the situations
such as :
- Key Shipboard Operations (R) – these are identified and
checklists are included in the Shipboard SMS Manuals.
During such operations, risk assessment shall be carried
out, considering the existing control measures. The
residual risks, if any, shall be suitably addressed by
introducing appropriate additional control measures.

48. 48
When is Risk Assessment
to be carried out ?
 Risk assessment shall be carried out in the situations
such as (Contd.) :
- Maintenance of Critical Equipment and Systems (C)
– these are identified in the Shipboard SMS Manuals.
- Non-routine (NR) Activity/Operation is planned to be
undertaken.
- Management of Change (MOC) – such as proposed
change in activities, organisation or
material/equipment.
- Changes noticed during operation –
the risk assessment shall be redone.

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Hazard Identification
 Risk assessment should be seen as a continual process.
 The risk in a workplace should be assessed for
identification of hazards before work begins on any
task using the Risk Assessment Register.
 For operations where valid risk assessment does not
exist, the assessment shall be carried out using the
appropriate Form.
 An assessment shall be reviewed and updated as
necessary, to confirm that it reflects any significant
changes of equipment or procedure.

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Risk Assessment Activity
 The risk assessment shall be carried out by a
team of individuals directly involved in the
operation and having a good understanding of
risk assessment method used.
 The team shall consist of the personnel from
management and operation levels.
 The risk assessment shall be approved by Safety
Officer, in consultation with Master, for all
shipboard operations.

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Risk Assessment Activity
 If additional safety controls are required for a particular
hazard for which risk assessment already exists and the
controls can be applied by the vessel using the available
resources on board, the Master is authorised to apply
additional controls, as necessary and intimate operating
division.
 Having carried out the risk assessment, if a residual risk is
identified in an unacceptable region, same shall be
forwarded to the Superintendent who, in consultation with
the Group I/C, will introduce further control measures to
bring the risk to ALARP level and approve the risk
assessment. The approval done by shore office shall be
conveyed to the Master. Approvals shall be maintained in
appropriate locations (File No.315).

52. 52
Risk Assessment
Related Training
 All superintendents and Group I/Cs of the operating division shall
undergo suitable training on hazard identification and risk
assessment.
 Management level shipboard officers joining vessels after
01.07.2010 are required to have undergone training in risk
assessment. Pending fulfilment of training requirements, such
officers shall be given briefing on risk assessment aspects prior
their posting by the operating division.
 Educational Series CD containing training material on hazard
identification and risk assessment shall be provided to the vessels.
Master shall ensure that all shipboard personnel are adequately
briefed on risk assessment aspects and understand the contents of
the CD upon joining. Evidence of such briefing imparted to all
shipboard personnel shall be maintained on board.

53. 53
Risk Assessment Methodology
& Estimation of Risk
 The risk is determined by estimating the
potential of severity of harm and the likelihood
that the harm will occur.
 The methodology recommended by British
Standard BS 8800:2004 “Guide to Occupational
Health and Safety Management System” shall
be applied for the purpose of risk assessment.
 This method is also recommended in “The Code
of Safe Working Practices for Merchant
Seamen”.

54. 54
Risk Assessment Methodology
& Estimation of Risk
 In any operation, risk towards health of the
personnel, safety and environmental protection
issues may be involved.
 Hazard to each of the factors may be considered to
determine the probability and consequence of
same.
 In case residual risk remains, same shall be
mitigated in order to bring same to ALARP level.
 Template for risk assessment is provided in the
appropriate Form.

55. 55
Risk Assessment Methodology
& Estimation of Risk
 Ship-type specific Occupational Health & Safety Risk
Assessment Register is provided on board (PDF
format).
 The registers are reviewed from time to time for
validity of the risk assessments to include latest risk
assessments based on the feedbacks from the vessels so
as to maintain consistency of risk assessment standards
across the fleet.
 Records of each risk assessment shall be maintained on
board and forwarded to the operating division and
concerned DO on quarterly basis.

56. 56
Risk Assessment Methodology
& Estimation of Risk
 Risk Assessment to be carried out with the aid of the
following tables and a record to be maintained in the
standard format.
 Determining Level of Risk : Determine the degree of
severity and the probability of harm from
Table 1, 2, or 3, respectively:
Then determine the level of risk from Table 4.
 Then determine Risk Tolerance Level from Table 5.
 Apply the ALARP Principle.

57. 57

58. 58

59. 59

60. 60

61. 61

62. 62

63. 63
Risk Matrix / Estimator
Likelihood Severity
Slightly
harmful
Harmful
Extremely
harmful
Highly
unlikely
Trivial Tolerable Moderate
Unlikely Tolerable Moderate Substantial
Likely Moderate Substantial Intolerable

64. 64
Evaluation of Risk Tolerance
On completion of risk estimation process, the risk tolerance
level shall be determined as per the following matrix:
Type of
Risk Risk Rating Action
Trivial 1 No further action required
Tolerable 2 Additional control required but
proceed with care
Moderate > 2 to 4 Hazard to be investigated and
control measures put in place to reduce risk
Substantial > 4 to 6 Work to start only after risk brought down to
ALARP
Intolerable > 6 to 9 Work should not be started until risk has been
reduced.
Table 5

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“How safe is safe enough?”
The ALARP Principle
 In order that risk assessment produces a clear
view of the issues and answer to the question
“How safe is safe enough?”, risk criteria based
on the framework of ALARP principle shall be
followed.

66. 66
‘ALARP’ Triangle
Intolerable Risk
Negligible Risk
The risk cannot be
justified save in extra
ordinary circumstances.
Tolerable only when risk
reduction is not practicable
or is disproportionate to the
benefits achieved (when cost
of the reduction exceeds the
benefits).
The ALARP
demonstration region.
(The risk is
Tolerable only if
ALARP demonstrated).
> 4 to 6
Generally Acceptable
Region
1 to 4
Unacceptable Region
> 6 to 9
Negligible Risk

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Review of Risk Assessments
Risk assessment and control is a continual process and therefore
periodical review to confirm the validity of the assessments and
whether risk controls are effective and adequate needs to be reviewed
as under:
 Formal review of the risk assessment shall be carried out annually
and risk assessment register shall be amended, if necessary.
 Review shall be based on —
- changes in working methods;
- reallocation of responsibilities;
- changes in equipment being used;
- occurrence of hazardous events;
- results of accident investigations;
- results of audits or FSI/PSC inspections or feedback from the
vessels.

68. 68
SUMMARY
To summarize the Risk Assessment Process :
 Step 1 : Identify the Hazards
 Step 2 : Evaluate the Risks arising out of the
Hazards. (Risk Matrix / Risk Estimator)
 Step 3 : Decide Preventive Action (ALARP)
 Step 4 : Implement Action. Maintain Records
 Step 5 : Monitor and Review.

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CONCLUSION
 Risk has two components : likelihood or probability of
occurrence and severity of the consequences.
 Risk Assessment is the process of estimating the
likelihood or probability of an accident occurring,
estimating the severity or magnitude of the consequential
loss and making a judgement about the tolerability or
significance of the risk.
 The ISM Code does not specify any particular approach to
the management of risk, and it is for the company to
choose methods appropriate to its organizational structure,
its ships and its trades. The methods may be formal, but
they must be systematic if assessment and response are to
be complete and effective, and the entire exercise should

70. 70
CONCLUSION
 It is therefore paramount that all Masters
and Senior Officers demonstrate fluency in
and strict compliance with the company’s
Safety Management System.
 How we manage risk on-board, or what we do
to prevent accidents from occurring in the first
place, must be the logical and necessary focus
of our endeavours to achieve a genuine
on-board safety culture.

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Safety Culture
“ Although the behaviour of individuals may be
influenced by a set of rules, it is their attitude to
the rules that really determines the culture.
Do they comply because they want to,
or because they have to?
To be truly effective in achieving the goal of
safer shipping, it is important that the shipping
community as a whole should develop
a want – to attitude.”
- Secretary – General, I M O.

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T H A N K Y O U
Safe, secure and efficient shipping on clean oceans.