Management Reviews, Auditing & Risk
Overview
While ship operators come under the scrutiny of Flag, Class and charterers, including Oil Majors, each organisation has their own reason and purpose for the audits that are carried out.
ConsultISM Ltd can carry out truly independent management reviews (health checks) of companies and ship audits with a view of giving confidential and constructive feedback, focusing on risk and safety management.
Management Reviews
What is really going on in the ship operator’s office and within the fleet? The company may hold a Document of Compliance (after all, it wouldn’t be able to operate ships without it) but are you completely satisfied that the company is being operated to suitable standards, in compliance with regulations and does not pose hidden risks? The answer is “probably not.” Such risks may expose the ship, her crew, the company’s management, the cargo owners and, of course, the insurers to unnecessary claims or even litigation.
At ConsultISM Ltd we believe that part of due diligence today is to conduct health checks of ship operators to ensure exposure to risk is kept to a minimum. This may be at the request of a P&I Club, eager to keep the level of claims down on behalf of its members, or at the request of the ship owner who may wish to have an independent view point as to how its ships are being managed. In addition, a ship owner and/or a shipping bank, would benefit from an independent review on a selection of companies before making the all important decision of appointing a ship manager.
Whatever the reason, or whoever the client may be, ConsultISM is able to provide a professional service that will deliver a clear and unbiased report. Not only will the report deliver fair and objective answers that the client requires but will also contain constructive assistance on why and how certain areas of the operation may be improved upon. Indeed many ship operators, after undergoing a management review, have elected to use ConsultISM to assist them with reviewing their procedures.
As well as conducting a thorough review, ConsultISM also improved the company’s approach to safety management.
“The audit helped us understand the risks that we had been exposed to and the steps now needed to control them.”
Ship Audits
Of course carrying out an audit of the ship operator’s office delivers only part of the full story. To really achieve a full understanding of how the company is run, it is beneficial to conduct audits of one or more ships within the company’s fleet. What is said (and shown) in the office is unfortunately not always mirrored when conducting a ship audit.
Only by inspecting a ship and interviewing her crew will the true effectiveness of the company’s safety management system become apparent. Our multi-disciplined team of consultants are able to identify areas of potential risk by looking closely at how the ship is run, how procedures are being adopted, how effective the safety culture is onboard and how efficient is the all important communication link between the ship and shore. In particular the following elements of essential ship operation will be scrutinised:
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Cargo Worthiness
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Maintenance
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Safety
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Security
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Navigation
The result will be a summary risk assessment enabling the client to make rational decisions and take whatever action that may be necessary to minimise the risks discovered, in turn reducing the likelihood of incidents and claims.
Clients using our consultants for management reviews, ship audits and risk analysis include:
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P&I Clubs
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Ship Operators
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Ship Owners
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Banks
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Charterers
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Insurance Underwriters
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ISM Code Compliance
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Manning
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Pollution Prevention
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Personal Injury Exposure
