On Jan 20, 2012, the 155 meter long, 19,777 DWT Philippine flagged vessel Aztec Maiden went aground off the coast at Wijk aan Zee, Netherlands. The vessel has just gone out of the breakwater with a Pilot after completing full discharge of her cargo when it encountered very heavy rolling and pitching due to a storm which caused its engines to stop automatically. The vessel anchored but eventually dragged her anchor and drifted until it grounded on a sandbank some 200 meters off shore. The Dutch Coast Guard responded and found the vessel stable with no injuries to its 21 crew, no structural damage to the vessel and no pollution. On the next high tide, a local salvage company pulled the Aztec Maiden back into port for closer inspection by authorities. When the weather permitted, the vessel was allowed to proceed to her next loading port.

The 10000 unsafe acts or conditions can lead to 1000 hazardous occurrences. This 1000 hazardous occurrences can lead to 100 minor injuries which may lead to 10 serious accidents and if not addressed, avoided or mitigated, it will lead to 1 death.

Do we need to have 1 death in our organization before we act safely?

Bulk carrier ran aground

On 19^th January, 2012, Bulker “Global Legacy” operated by NYK Global Bulk Corporation which is subsidiary of NYK Line stranded at Pohang, Korea. She has anchored at Pohang waiting for cargo.

She dragged and hit break water due to strong wind. After hitting break water, she stranded at about 100meter away from shore. As her fuel tank was damaged, we are collecting the in formations as to its quantity. We are managing situation coordinating with local authority.

Risk Management

The entire process of identifying, evaluating, controlling and reviewing risks, to make sure that the organisation is exposed to only those risks that it needs to take to achieve its primary objectives, is known as 'risk management.'

Risk management is a proactive process, not reactive.

Risk cannot be eliminated. However, it can be:

• Transferred to another party, who is willing to take risk, say by buying an insurance policy or entering into a forward contract;
• Reduced, by having good internal controls;
• Avoided, by not entering into risky businesses;
• Retained, to either avoid the cost of trying to reduce risk or in anticipation of higher profits by taking on more risk, and;
• Shared, by following a middle path between retaining and transferring risk.

OPTIONS TO BE CONSIDERED TO IDENTIFY RISK

1. comparison against risk minimization measures
2. checklists
3. group process techniques
4. analysis of the project assumptions
5. analysis of areas uncertainty
6. analysis of the reasons why decisions have been made to ensure that these remains valid

RISK MANAGEMENT

Risk Management is considered a vital aspect of a business world, it is because success of the business depends upon successfully identifying the risks and finding the best strategies to overcome these risks.

Risk Management