RISK ASSESSMENT:

RISK :
i. Risk is the possibility of loss, damage, or any other undesirable event.

ii. Risk is the combination of the likelihood and the consequence of a specified hazard being
realized. It is a measure of harm or loss associated with an activity.

Analysing Risk:

Thus, there are two points to keep in mind when analyzing risk:

1. Where is the risk?

2. How significant is the risk

Hazard :
HAZARD is the inherent characteristic of a material, condition, or activity that has the potential to cause
harm to people, property, or the environment.

Likelihood:
i. LIKELIHOOD is expressed as either a frequency or a probability;

ii. Frequency is a measure of the rate at which events occur over time (e.g., events/year,
incidents/year, deaths/year, etc.);

iii. Probability is a measure of the rate of a possible event expressed as a fraction of the total
number of events (e.g., one-in-a-million, 1/1,000,000.

CONSEQUENCE :
CONSEQUENCE is the direct effect of an event, incident or accident. It is expressed as a health effect
(e.g., death, injury, exposure), property loss, environmental effect, evacuation, or quantity spilled.

HAZARD ANALYSIS:
HAZARD ANALYSIS is the identification of material properties, system elements or events that lead to
harm or loss. The term hazard analysis may also include evaluation of consequences from an event or
incident.

RISK ANALYSIS:

RISK ANALYSIS is the study of risk in order to understand and quantify risk so it can be managed.
RISK ASSESSMENT:
RISK ASSESSMENT OR RISK CHARACTERIZATION is determination of risk context and
acceptability, often by comparison to similar risks.

Quantitative Risk Analysis

Quantitative Risk Analysis incorporates numerical estimates of frequency or probability and

consequence. In practice a sophisticated analysis of risk requires extensive data which are expensive to
acquire or often unavailable. Fortunately few decisions require sophisticated quantification of both
frequency and consequences.

RELATIVE RISK ANALYSIS

RELATIVE RISK ANALYSIS means that a risk is evaluated in comparison to another risk. The type of
risk analysis used should be appropriate for the available data and to the exposure, frequency and
severity of potential loss.

RISK MANAGEMENT

i. RISK MANAGEMENT is the systematic application of policies, practices, and resources to the
assessment and control of risk affecting human health and safety and the environment.

ii. A critical role of the safety regulator is to identify activities involving significant risk and to
establish an acceptable level of risk. Near zero risk can be very costly and in most cases is not
achievable.

ACCEPTABILITY:
i. AN ACCEPTABLE LEVEL OF RISK for regulations and exemptions is established by
consideration of risk, cost/benefit and public comments.

ii. Relative or comparative risk analysis is most often used where quantitative risk analysis is not
practical or justified.

RISK ASSESSMENT:

i. It is based on the optimum utilization of resources, personnel, financial or material, in order to

achieve the objectives of the organization. Risk analysis or assessment is an integral or vital part
of risk management.

ii. Risk analysis/assessment is the process of identifying and assessing various risks that an activity
is exposed to, both in terms of frequency of occurrence as well as the severity of the
consequences.

iii. The operation of ships is a complex activity that takes place in an environment which is often
unpredictable and sometimes hostile.

iv. Catastrophic losses due to cyclones, hurricanes and tidal waves as well as risks due to human
error necessitate a process to identify & analyse such risks & evolve measures to counter or
neutralize them.
 v. This should also include periodic reviews at appropriate intervals to assess the effectiveness of
these measures and also identify new risks.

Risk and the Shipping Industry

We shall take a passing glance at risk management in the broader context of the shipping industry before
taking a deeper look at it in the narrower context of shipboard activities.

RISK: may be defined as the uncertainty or lack of knowledge concerning the outcome of events. e.g. the
risk of a vessel becoming a total loss.

HAZARD: is a condition that increases the likelihood of loss. E.g. in poor visibility conditions, the use of
high speed is a hazard that may lead to a collision.

PERIL: is the cause of a loss; e.g. fire is a peril which may cause extensive damage to the ship and/or
her cargo.

RISK RESPONSE: is the manner in which an organization wishes to respond to the assessed exposure
to risk. The response may be acceptance or avoidance of the risks and as a consequence, decide on a
way to treat the risks which are acceptable (though they may be undesirable).

This RISK TREATMENT is always at a cost and may involve reducing the exposure, transferring the risk
or retaining it, or a judicious mix so that the organization achieves its aim of maximum profit at a minimum
cost.

Transfer of risk is done by suitably worded provisions in the contract or by professional risks carriers like
insurance companies and P & I Clubs.

Risk and Shipboard Activities

Having had an insight into risk assessment as a component of the shipping industry at large, we now
examine its relevance to the ship and the seafarer. Recognizing the importance of the man, many
shipping companies had put in place safety measures that provided a high degree of safety for workers.

RISK EXPOSURE:

i. Is not a static phenomenon but a dynamic one and any exercise in risk analysis has to be a
continuous review of risk exposure in order to identify any change in the nature or extent of the
risks in the light of changing circumstances.

ii. On board ship when activities are sometimes repetitive, every situation requires varied
responses.

iii. In an effort to control the known risks certain ship board activities have been identified and
measures have been codified and universally accepted to nullify or negate the risks involved
when undertaking such activities.

iv. This normally takes the form of work permits and checklists.
 Principles of Risk Assessment:

The approach to risk analysis can be broken up into five simple steps:

1. Identification of hazards.

2. Assessment of risks.

3. Risk control options.

4. Cost benefit assessment.

5. Recommendations for decision-making.

What Should be Assessed?

i. The assessment should cover all the risks arising from the work activities of seamen, but it is not
accepted to cover risks which are not reasonably foreseeable.

ii. It is advisable to record significant findings of the assessment.

iii. Risks considered to be trivial where no further precautions are required need not be recorded.

Who Carries out the Assessment?

i. The process of risk assessment should be carried out by suitably experienced persons using
specialized advice if necessary.

ii. On board ship, the Master and the Chief Officer possess sufficient experience to do this, guided
by company manuals, circulars and other safety manuals.

iii. It is sufficient that the assessment addresses only job at hand and not peripheral activities.

When to Carry out Assessment?

Risk assessment is a continuous process. In case no valid risk assessment exists, an

assessment should be carried out before the task begins. It is then reviewed and revalidated to
ensure that it includes any insignificant changes in procedure or equipment.

Risk Assessment Elements:

1. Classify work activities.

2. Identify hazards and persons at risk.

3. Determine risks

4. Decide if risk is tolerable.

5. Prepared plan of action (if necessary).

6. Review adequacy of the plan of action.

 Classify Work Activities:

1. Department / location on board.

2. Stage of operation or work routine.

3. Plan or unscheduled maintenance

4. Defined tasks.

The information needed to be gathered may include:

i. Tasks being carried out, their duration &d frequency.

ii. Location of work.

iii. Person who normally or occasionally carries out the task.

iv. Other persons who may be affected by the work. (e. g. Passengers)

v. Training that the person has received.

Identify Hazards:

1. Mechanical.

2. Electrical.

3. Physical.

4. Radiation.

5. Substances.

6. Fire and Explosion.

Determine Risks :

The risk from the hazard can be determined by estimating, separately, the potential severity of
harm and the likelihood that harm will occur.

The potential severity can be gauged thus:

Parts of the body likely to be affected.

Nature of the harm, ranging from slightly to extremely harmful.

Slightly harmful-superficial injuries

Minor cuts and bruises, eye irritation from dust or nuisance/irritation like headaches or ill health
leading to temporary discomfort.
 Harmful

Lacerations, burns, concussions, serious sprains, minor fractures or deafness, dermatitis,

asthma, ill health leading to permanent minor disability.

Extremely harmful

Amputations, major fractures, poisoning, multiple injuries, fatal injuries or occupational cancer,
other severely life shortening diseases, acute fatal diseases.

Decide if Risk is Tolerable:

Having established the likelihood of harm, it is necessary to gauge its severity and decide
whether or not the risk is tolerable (or worth taking).

Slightly Harmful Harmful Exremly Harmful

Highly Unlikely Trivial Risk Tolerable Risk Moderate Risk

Unlikely Tolerable Risk Moderate Risk Substantial Risk

Likely Moderate Risk Substantial Risk Intolerable Risk

Prepare Risk Control Action Plan

The categories worked out as per Table can form the basis for determining whether existing controls
need to be augmented and the duration for which such revised controls/measures should be in place.

LEVEL OF TOLERANCE ACTION & TIMESCALE

TRIVIAL No action is required and no documentary records need be kept.

TOLERABLE No additional controls are required. Consideration may be given to a more cost
effective solution or improvement that imposes no additional cost burden.
Monitoring is required to ensure that controls are maintained.

MODERATE Efforts should be made to reduce risk, but the costs of prevention should be carefully measured and
limited. Risk reduction measures should be implemented within a defined time period. When the
moderate risk is associated with extremely harmful consequences, further assessment may be
necessary to establish more precisely the likelihood of harm as a basis for determining the need for
improved control measures.

SUBSTANTIAL Work should not be started until the risk has been reduced. Considerable resources may have to be allocated
to reduce the risk. Where the risk involves work in progress, urgent action should be taken.

INTOLERABLE Work should not be started or continued until the risk has been reduced. If it is not possible to reduce the
(UNACCEPTABLE) risk even with unlimited resources, work has to remain prohibited.

Review Adequacy of Action Plan

Even before the action plan is implemented, it is necessary to review the plan by typically answering the
following questions.

1. Will the augmented controls lead to tolerable risk levels?

2. Are new hazards likely to be created?
3. What do others affected think about the necessity and the practicality of the revised preventive
measures?
4. Will the revised controls continue to remain in place and not be discarded in the rush to complete
the job?

COMPETENT PERSON:
The term "Competent Person" is used in many OSHA standards and documents. An OSHA
"competent person" is defined as "one who is capable of identifying existing and predictable
hazards in the surroundings or working conditions which are unsanitary, hazardous, or
dangerous to employees, and who has authorization to take prompt corrective measures to
eliminate them" [29 CFR 1926.32(f)]. By way of training and/or experience, a competent
person is knowledgeable of applicable standards, is capable of identifying workplace
hazards relating to the specific operation, and has the authority to correct them.

Competent person(s) must be capable of identifying existing and predictable

hazards in the surroundings or working conditions and have authorisation
to take prompt corrective measures to eliminate them.

According to the Safety, Health and Welfare at Work Act 2005, a person is deemed to be a
competent person where, having regard to the task he or she is required to perform and
taking account of the size or hazards (or both of them) of the undertaking or establishment in
which he or she undertakes work, the person possesses sufficient training, experience and
knowledge appropriate to the nature of the work to be undertaken.