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Effective Risk Management, A necessary Tool for Surviving
in Difficult Times
Toshitomo MATSUI Managing Director
Nippon Kaiji Kyokai, ClassNK
INTERTANKO TOKYO 2009INTERTANKO TOKYO 2009
15th May 200915th May 2009
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1. Understanding of Difficult Times
2. ClassNK Activities related to Risk Management / Assessment
A)Training Course on Risk Management
(e.g. ClassNK Academy)
A)R&D Projects – Risk Assessment
3. Classification Services – Rules for Lay up
TOPICS
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1. Understanding of Difficult Times
2. ClassNK Activities related to Risk Management / Assessment
A)Training Course on Risk Management
(e.g. ClassNK Academy)
A)R&D Projects – Risk Assessment
3. Classification Services – Rules for Lay up
TOPICS
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Global Financial Crisis & Credit Crunch Started primarily from the subprime problem in USA
Newbuilding Cancellations reached 1,000 ships Cancellations mainly at Greenfield shipyards in China and Korea
Drop in steel prices Recent trend in declining steel prices
Understandings of Difficult Times
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Numbers of containerships on standby are growing
485 container ships (1.42 million TEUs) anchored in the world (Source : AXS-Alphaliner as of the 16th Mar.)
New scrapping boom started at end of last year. Demolitions expected to peak in 2010-2011
Understandings of Difficult Times
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Greenfield Shipyards Face Bankruptcy Some shipyards have already gone bankrupt
Increased Piracy along the coast of Somalia and Gulf of Aden Increase in the number and intensity of pirate attacks
Understandings of Difficult Times
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Rising & Falling Oil Prices Bunker prices showed similar movement to oil prices
Shipyard & Maker are developing a number of projects aimed at protection of environment. ・ Ecological Ship ・ Ballast water treatment system ・ Low air pollution diesel engine
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Bunker (Singapore)
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Solar Battery Panels
Cited from NYK Website
Understandings of Difficult Times
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AFS Convention entered into force on 17 Sep. 2008 International convention on the control of harmful anti-
fouling systems on ships LRIT requirements entered into force on 1 Jan. 2009 Ships are to be fitted with a system to automatically
transmit Long Range Identification and Tracking (LRIT) information.
BWM Convention will probably take effect * More and more ballast water treatment systems are being approved * Current status of ratification as of Feb. 2009 - Ratification: 18 states [30 states] - World shipping tonnage : 15.36 % [35%]
Understandings of Difficult Times
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1. Understanding of Difficult Times
2. ClassNK Activities related to Risk Management / Assessment
A)Training Course on Risk Management
(e.g. ClassNK Academy)
A)R&D Projects – Risk Assessment
3. Classification Services – Rules for Lay up
TOPICS
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Risk Management/Assessment
DDooDDooCCheckheck CCheckheck
AActct AActct
Continuous Continuous ImprovementImprovement of Systemof System
PPlanlan Risk AssessmentRisk Assessment
PPlanlan Risk AssessmentRisk Assessment
• Risk Management (RM) & Risk Assessment (RA): A tool for Surviving in Difficult Times:
Tool for improving Safety (Pro-Active) Tool for improving Ship Management System Tool for facilitating innovative design (Feasibility Study) …
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Training Course on Risk Management
PPlanlan
AActctMMeasureeasure
IImprovemprove
Tanker OwnersTanker OwnersOperatorsOperators
TTMMSSAA
TTMMSSAA
•ClassNK Academy will be lunched shortly.•TMSA Course covers Risk Management
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Do 実施
Check パフォーマンス・ 有効性の評価
Act 是正・改善
システム の継続的改善
Plan
Risk Assessment
Hazard IdentificationHazard Identification
Scenario DefinitionScenario Definition
Frequency AnalysisFrequency AnalysisConsequence AnalysisConsequence Analysis
Risk Controlled?Risk Controlled?
Options to DecreaseOptions to DecreaseFrequenciesFrequencies
Options to MitigateOptions to MitigateConsequencesConsequences
Cost Effectiveness AssessmentCost Effectiveness Assessment
nono nono
yesyes
Policy and CriteriaPolicy and Criteria
Decision MakingDecision Making
Example of Training Materials
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1. RA on Engine Room Fire
2. RA on Bulk Carrier Safety
3. RA on Oil Spills from Tankers
4. Feasibility Study (FS) on Offloading System of Natural Gas Hydrate (NGH) FPSO (Application of HAZID Technique)
5. FS on NGH Carriers
6. RA on Hull Structure &
Propulsion System
of LNG Carriers
R&D Projects – Risk Assessment (RA) -
(Provided by MES)
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1. Understanding of Difficult Times
2. ClassNK Activities related to Risk Management / Assessment
A)Training Course on Risk Management
(e.g. ClassNK Academy)
A)R&D Projects – Risk Assessment
3. Classification Services – Rules for Lay up
TOPICS
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Classification Service: Lay-upClassification Service: Lay-up
(i) (i) Rules and Guidance for the survey Rules and Guidance for the survey and construction of steel ships, 1.1.and construction of steel ships, 1.1.8 of Part B 8 of Part B
(ii) Internal Instruction for NK (ii) Internal Instruction for NK surveyorssurveyors
In case ship owners intend that their ships to be In case ship owners intend that their ships to be laid-up, contact NK Survey Department or local laid-up, contact NK Survey Department or local survey office close to the lay-up place.survey office close to the lay-up place.
Relevant NK’s Provisions
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Thank you for Attention
Nippon Kaiji Kyokai