Unit 1: Introduction
The International Safety Management (ISM) Code establishes a mandatory requirement for every company to actively engage in risk management as a core function of its Safety Management System (SMS). The Code's objectives explicitly state that a company's safety management should provide for safe practices in ship operation, a safe working environment, and "assess all identified risks to its ships, personnel and the environment and establish appropriate safeguards." This is not an optional activity but a foundational pillar of modern maritime safety.
However, meeting this requirement presents a major challenge for many companies, particularly smaller ones. The Code also requires companies to "continuously improve safety management skills of personnel ashore and aboard ships, including preparing for emergencies," which demands significant resources for planning, training, and application that are not always available.
This chapter investigates the application of a risk-based approach in the shipping industry. It assesses the effectiveness and usefulness of the methods companies use to conduct the risk assessments required by the ISM Code, exploring the frameworks, cultural elements, and human factors that determine success.