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Enterprise Risk
Management

Maersk Shipping Lines

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Maersk Lines is a Danish shipping company founded in 1904 Headquarters in

Copenhagen.
It operates in more than 135 countries worldwide, with a total of 108,000 employees.
MISSION
• Identifying current risks, and actively adding value in preparing for tomorrow
• Forward thinking, planning and execution
• Being informed and innovative, and seeking out new ideas
• Watching for changes in the environment
Maersk Line strives to be seen as a service supplier that transport products satisfactorily.
Thus, the equipment used are high quality, and all strategies come with a policy of risks
minimization.
Another point that Maersk has treated seriously is to create a safe and balanced
workplace environment. In this regard, the company assumes the responsibility to
provide employees all the training to work at full capacity and to ensure that new
employees understand the concept of quality and its importance as part of the Maersk
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The Shipping Industry

Shipping is a vast and complex 1970 With increased expansion in shipping comes more risks 2012
economic activity, both in the
volume of goods in traffic annually
and in material value. It is
estimated $4.5 trillion worth of
cargo was transported annually.
Between 1980 and 2016, the
deadweight tonnage of container
grew from 11 million metric tons to
244 million metric tons.
With the incredible growth of
international trade, comes the
tremendous increase of risks within
the industry.
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SHIPPING
With the huge volume movement of
goods globally, it’s obvious that modern
shipping plays a leading role, both
quantitatively and qualitatively.
QUANTITATIVELY
Vast numbers of data gathered in terms of
movement of goods across the oceans
compared to land based transportation
QUALITATIVELY
Planning, Operations and Management
are graded by IMO through the vast
amount of operational evaluations
collected to provide Quality Assurances
in the movement of goods globally.
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RISKS
BAD WEATHER
Large losses from a string of natural
catastrophes in 2017 are a reminder that
“we cannot overlook the traditional risks
that we have faced for generations

Being a capital intensive, multinational

company with long term investments
means that not only is a solid
understanding of the KNOWN RISKS to
the businesses important but also of
potential emerging risks associated with
the portfolio of the businesses and
countries in which it’s vessels operates.
1. CYBER-RISKS
2. PIRACY
3. SAFETY
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RISKS
Cyber-risk:
Once seen as a marginal problem for
shipping, cyber-risk is now considered one
of the top threats
There was the NotPetya cyber-attack that
hit Maersk in June. The crippling attack
seized the industry’s attention after it cost
the company $200 million to $300 million
and led to a temporary shutdown of the
largest cargo terminal in the Port of Los
Angeles.
NotPetya — a ransomware attack that
prevented people from accessing their data
unless they paid $300 in bitcoin

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THE VALUE CHAIN
Maersk uses a series and sequence of activities by which it transforms inputs into outputs. Applying actions to
issues identified, gave rise to the concept of Maersk’s Risk Management Process.
The value loop is a loop of Analytical Systems that continually monitors the state or behavior of things in the
operational world of Maersk Shipping Lines. The stages of this system operates on a platform called The Internet
of Things (IoT). Information moves through the various stages within the loop, all the while being enhanced by
word-wide connected specific technology. The Value Loop process follows the sequence below:
1. An act is monitored by a sensor that creates information. IDENTIFY
2. That information passed through a network so that it can be communicated, and standards applied…be they
technical, legal, regulatory, or social.
3. That information is aggregated across time and space by Augmented Intelligence is a generic term meant to
capture all manner of analytical support, which collectively are used to analyze information.
4. The loop is completed via augmented behavior technologies that either enable automated autonomous action
or shape human decision in a manner that leads to improved action.
Getting information around the Value Loop allows an organization to create value; how much value is created is a
function of the value drivers, which capture the characteristics of the information that makes its way around the
value loop. The drivers of information value can be captured and sorted into the three categories: magnitude, risk,
and time.
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1.
Computer Aided
Behavioral Pattern

5.

2.

VALUE LOOP

Computer Aided
Intelligence

3.
4.
Combined

According to IMO

WHERE VALUE IS ADDED TO INFORMATION

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PIRACY
This reduction is attributed to
measures used to thwart pirates
in the Gulf of Aden and Indian
Ocean, including armed guards
on-board vessels and patrols
by a multinational naval task
force.

The ICC International Maritime

Bureau reported 191 incidences of
piracy in 2016, down 22% from
2015 and the lowest total since
1998. In particular, piracy off the
coast of Somalia has dropped
dramatically, with just two
recorded incidents in 2016
compared to 160 five years before.
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PIRACY

7. 5.
6.

8.

4.

9.
3.

2.

1.

SAFETY/ REPUTATIONAL/ FINANCIAL

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SAFETY
Ship data recorders have shown that human
error accounts for about 75% to 90% of
marine accidents, amounting to more than
$1.6 billion in losses

Numbers like these have spurred interest in

autonomous ships that could move cargo
more safely.

The jury is still out on whether safety

concerns and regulations will clear the way
for ocean-going autonomous vessels in the
near future,

Ultimately, we believes technology will

support, rather than fully replace, ship crews.
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Competitors
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Maersk Line implements strategies that can be used on a global level

by investing heavily in it’s core value culture of humbleness and
uprightness.

Utilizing quality strategies externally and internally, the company

focuses very much on customer satisfaction, and risk mitigation.

Targeting the continuous improvement of quality management within

the company, is what ensures employees are trained and educated to
minimize the rate of accidents at work and work safety .
WHEN OUR CUSTOMERS AND EMPLOYEES ARE SATISIFEID MAERSK SUCCEEDS