Risk Management
Risk Management Definitions
Risk: Arithmetic product of Likelihood and Severity. Likelihood * Severity.
Likelihood: The probability that a given event will occur. Likelihood is expressed here in qualitative terms (Rare, Unlikely, Possible, Likely and Almost Certain).
Severity: The extent of the damage to the People (crew or 3rd party), Asset (Company Asset or Cargo), the Environment (Water or Air) and the Company Reputation, resulting from a risk event occurring.
Risk management: A process that involves assessing the risks that arise on board, putting health, safety and environmental protection measures in place to control them, and then ensuring they work, such as enclosed space entry procedures and the ability to comply with the ship’s Safety.
Risk Assessment: is an examination of what, on board, may cause harm to personnel, property or the environment, so that it can be determined whether adequate precautions have been taken.
Management of Change (MOC): Is also called Change Management. It is a systematic approach to organizational changes with the aim of ensuring the continued safety of the workforce throughout the process. These systematic processes ensure that the change is dealt with in a proactive manner. Relevant Risk Assessments MUST always be part of a MOC.
Hazard: A hazard is anything with the potential to cause harm to persons, property or the environment.