1. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 1 Risk Assessment in Shipping Companies Intertanko Vetting Seminar Vouliagmeni, Greece Tony Field MMSC-EMEA Lloyd’s Register

2. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 2 Do the Shipping Companies do it well?

3. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 3 Why? Re-active not Pro-active Often not structured Specific assessments carried out independently not considering impacts on other areas of the Company Ouch!

4. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 4 Risk Assessment now “Mandatory” ISM Code – Implicit EU Regulations IMO Flag Requirements Industry Best Practice – TMSA – Mandatory!

5. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 5 What do other Industries do? Offshore Aviation Military Financial

6. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 6 Risk Assessment – Company Wide Overview Of Company Possible Scenarios Known Changes “What If” Changes Procedures Shipboard Activities

7. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 7 Are your assessments being effective?

8. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 8 Link Risk Assessment to Performance (KPI’s) To time (man-days) lost due to accidents To days off-hire/breakdowns To non budgeted maintenance costs To PSC results To financial results To insurance claims To crews!Retention Satisfaction

9. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 9 New ILO Regulations What are the Risks? Good test maybe? Financial Costs to the Company Country of Ownership Flag Crew Nationality Crew Contracts New Requirements Ship Requirements Overview Of Company Possible Scenarios Known Changes “What If” Changes Procedures Shipboard Activities

10. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 10 Summarise Proactive Take an Overall View Maybe Need Training / Guidance Commitment

11. MMSC-EMEA Lloyd’s Register EMEA 7 th April 2005 11 Do you agree?