DOI QR코드

DOI QR Code

A risk management methodology for maritime logistics and supply chain applications

  • Mokhtari, Kambiz (Liverpool Logistics, Offshore and Marine (LOOM) Research Institute, School of Engineering, Technology and Maritime Operations, Liverpool John Moores University) ;
  • Ren, Jun (Liverpool Logistics, Offshore and Marine (LOOM) Research Institute, School of Engineering, Technology and Maritime Operations, Liverpool John Moores University)
  • Received : 2013.12.19
  • Accepted : 2014.05.30
  • Published : 2014.06.25

Abstract

In the marine industry although there has been significant growth towards safety, security and risk assessments or risk-based strategies such as marine insurance and regulations to avoid the risks of damage to properties and the environment or the prospect of premature death caused by accidents etc, the moves toward managing the risks which are linked directly to the business functions and decision making processes have been very slow. Furthermore in the marine industry most perceptions, methodologies and frameworks of dealing with hazards, risks, safety and security issues are for their assessment rather than their management. This trend reveals the fact that in different marine industry sectors such as logistics and shipping there is a lack of coherent risk management framework or methodology from which to understand the risk-based decisions especially for the purpose of design, construction, operation, management and even decommissioning of the marine related applications. On the other hand risk management is not yet viewed holistically in the marine industry in order to, for example, assign a right person, i.e. risk manager, who can act as a coordinator and advisor with responsibilities that are only specific to risk management. As a result this paper, by examining the present physical borders and risk-based activities in the marine industry, aims to propose an appropriate risk management methodology in addition to the emergent role of risk managers which will enable the industry users initially to become familiar with the concept of risk management at its holistic level. In the later stages this eventually can lead to development of risk management capabilities at an exclusive level and its integration into the marine industry functions in future.

Keywords

References

  1. ABS, American Bureau Shipping (2000), Risk assessment applications for marine and offshore oil and gas industries.
  2. ABS, American Bureau Shipping (2003), A guide for risk evaluations for the classification of marine-related facilities.
  3. AIRMIC Integrated Risk Management Special Interest Group (1999), A guide to integrated risk management. London: The Association of Insurance and Risk Managers in Commerce.
  4. AIRMIC, ALARM, IRM Standard (2002), A risk management standard. London: AIRMIC, ALARM, IRM.
  5. Brown, R.H. (1998), Marine insurance: principles and basic practice, 6th Ed., Witherby Publishing.
  6. Butterworth, M., Reddaway, R. and Benson, T. (1996), Corporate Governance - a guide for insurance and risk managers. London: Association of Insurance and Risk Management.
  7. Carter, R. and Crockford, G. (1974), Handbook of risk management, Kluwer Publishing, Kingston, UK.
  8. CCPS, Center for Chemical Process Safety (1989), Guideline for chemical process quantitative risk analysis, 1st Ed., New York: Center for Chemical Process Safety, American Institute of Chemical Engineers (AIChE).
  9. CFO Research Services (2002), Strategic risk management- new disciplines, new opportunities, Boston, Mass. CFO publishing Corp.
  10. Dagdeviren, M. (2008), "Decision making in equipment selection: an integrated approach with AHP and PROMETHEE", J. Intell. Manuf., 19(4), 397-406. https://doi.org/10.1007/s10845-008-0091-7
  11. Deloach, J.W. (2000), Enterprise wide risk management: strategies for linking risk with opportunity, London: Finance Times/Prentice Hall.
  12. DETR, Department of Transport (2000), Port marine safety code. March 2000, ISBN: 1 85112 365 2.
  13. Dickson, G.C.A. (2003), Risk analysis, The Institution of Risk Management, IRM, Witherby publishing.
  14. DNV, Det Norsk Veritas (2010), Integrated Management System (IMS) Available at: http://www.dnv.com/ Accessed on: 01.09.2010.
  15. ESCAP, Economic and Social Commission for Asia and the Pacific (2009), Development of dry ports, United Nations, New York.
  16. GAO, United States Government Accountability Office (2006), Port risk management: Further Refinements Needed to Assess Risks and Prioritize Protective Measures at Ports and Other Critical Infrastructure. Report to Congressional Committees.
  17. Golec, A. and Taskin, H. (2007), "Novel methodologies and a comparative study for manufacturing systems performance evaluations", Inform. Sciences, 177, 5253-5274. https://doi.org/10.1016/j.ins.2007.06.024
  18. Hopkin, P. (2002), Holistic risk management in practice, London: Witherby&Co.Ltd. ISBN: 1 85609 207 5.
  19. ICS (2006), Shipping Business. The institute of chartered Shipbrokers, UK.
  20. ICS (2007), Port and Terminal Operations and Management. The institute of chartered Shipbrokers, UK.
  21. IRM, The Institute of Risk Management. (2002), A standard for risk management, www.theirm.org.
  22. ISPS Code (2003), International Ship and Port Facility Security Code, SOLAS Amendments adopted on 12 December 2002. IMO London.
  23. Jarzemskis, A. and Vasiliauskas, A.V. (2007), Research on dry port concept as intermodal node.
  24. Johnson, G. and Scholes, K. (2002), Exploring corporate strategy, 6th Ed., Harlow: Pearson Education Ltd.
  25. Kahraman, C., Buyukozkan, G. and Ates, N.Y. (2007), "A two phase multi-attribute decision making approach for new product introduction", Inform. Sciences, 177(7), 1567-1582. https://doi.org/10.1016/j.ins.2006.09.008
  26. Khan, F.I., Sadiq, R. and Husain, T. (2002), "Risk-based process safety assessment and control measures design for offshore process facilities", J. Hazard. Mater., 94(1), 1-36. https://doi.org/10.1016/S0304-3894(02)00004-3
  27. Kotler, P. (1988), Marketing management: analysis, planning, implementation, and control, 6th Ed., Prentice-Hall International Edition.
  28. Krishna, K., Wang, Y., Saraf, S.R., Rogers, W.J., Baldwin, J.T., Gupta, J.P. and Mannan, M.S. (2003), "Hydroxylamine production: Will a QRA help you decide?", Reliab. Eng. Syst. Safe., 81(2), 215-224. https://doi.org/10.1016/S0951-8320(03)00115-7
  29. Kulak, O. and Kahraman, C. (2005), "Fuzzy multi-attribute selection among transportation companies using axiomatic design and analytic hierarchy process", Inform. Sciences, 170(2-4), 191-210. https://doi.org/10.1016/j.ins.2004.02.021
  30. Kurttila, M., Pesonen, M., Kangas, J. and Kajanus, M. (2000), "Utilizing the Analytic Hierarchy Process (AHP) in SWOT analysis a hybrid method and its application to a forest-certification case", Forest Policy Econ., 1(1), 41-52. https://doi.org/10.1016/S1389-9341(99)00004-0
  31. Lassen, C.A. (2008), Layer of protection analysis (LOPA) for determination of safety integrity level (SIL), Norwegian University of Science and Technology. MSc Thesis.
  32. Lees, F.P. (1996), Loss prevention in the process industries. 2nd Ed., Boston.
  33. Maclachlan, M. (2004), The shipmaster's business companion, Published by the nautical institute, 4th Ed., ISBNN: 1870077458.
  34. Mather, A. (2009), FPSO Handbook. Witherby seamanship international Ltd. ISBN: 9781905331574.
  35. Mather, A. (2000), Offshore engineering, an introduction, 2nd Ed., Witherby seamanship international Ltd. ISBN: 1856091864.
  36. McDonald, M.H.B. (1993), The Marketing Planner. Butterworth- Heinemann, Oxford.
  37. Mehr, R. and Hedges, B. (1974), Risk Management: Concepts and Applications. Irwin.
  38. Miller, K.D. and Waller, H.C. (2003), "Scenario, real options and integrated risk management", Long range planning, 36, 93-107. https://doi.org/10.1016/S0024-6301(02)00205-4
  39. Mintzberg, H. (1994), The rise and fall of strategic planning. Hemel Hempstead, Herts: Prentice Hall International (UK) Ltd.
  40. NE P&I Club (2008), An introduction to P&I insurance and loss prevention, Loss prevention guide.
  41. OCIMF (2004), Marine terminal baseline criteria and assessment questionnaire. Oil companies international marine forum, 1st Ed., Steamship international. Witherby publishing.
  42. PARMA (2010), Available At: http://www.parma.com/jobpost_details.cfm?jobid=1065 Accessed on 05.09.2010.
  43. Pillay, A. and Wang, J. (2003), Technology and safety of marine system, Elsevier ocean engineering book series. ISBN: 0 08 0441483.
  44. PMSC, Port Marine Safety Code (2001), Chichester harbour conservancy, 1st Dec. 2001.
  45. Ren, J., Wang, J., Jenkinson, I., Xu, D.L. and Yang J.B. (2007), "A Bayesian network approach for offshore risk analysis through linguistic variables", China Ocean Eng., 21(3), 371-388.
  46. Ren, J., Jenkinson, I., Wang, J., Xu, D.L., Yang, J.B. (2008), "A methodology to model causal relationships on offshore safety assessment focusing on human and organisational factors", J. Safety Res., 39(1), 87-100. https://doi.org/10.1016/j.jsr.2007.09.009
  47. Ren, J., Jenkinson, I., Wang, J., Xu, D.L. and Yang, J.B. (2009), "An offshore risk analysis method using fuzzy Bayesian network", J. Offshore Mech. Arct., 13(1), 041101-1-12.
  48. Snider, H. (1991), Risk Management: A Retrospective View. Risk Management, April.
  49. Sutton, I. (2010), Process risk and reliability management. Operational integrity management. Published by Elsevier Inc. ISBN: 9781437778052.
  50. TNYT, The New York Times (2010), Gulf of Mexico Oil Spill, 2010 Available At: http://topics.nytimes.com/top/reference/timestopics/subjects/o/oil_spills/gulf_of_mexico_2010/index.html Accessed on 05.09.2010.
  51. Trbojevic, V.M. and Carr, B. J. (2000), "Risk based methodology for safety improvements in ports", J. Hazard. Mater., 71, 467-480. https://doi.org/10.1016/S0304-3894(99)00094-1
  52. Trenerry, C.F. (1926), The Origin and Early History of Insurance: Including the Contract of Bottomry.
  53. Trieschmann, J.S., Gustavson, S.G. and Hoyt, R.E. (2001), Risk Management and Insuramnce.11 Ed. South-Western College Publishing. Thomson Learning.
  54. UKHSE, United Kingdom Health and Safety Executive (2010), Available at: http://www.hse.gov.uk/index.htm Accessed on: 15.01.2010.
  55. UNCTAD (1976), port performance indicators. TD/B/C.4/131/Supp.1/Rev.1.
  56. UNCTAD (1993), Legal aspect of port management Reported by the UNCTAD secretariat. UNCTAD/SHIP/639.
  57. UNCTAD (2006), Marine security: elements of an analytical framework for compliance measurement and risk assessment. New York and Geneva, 2006. UNCTAD/SDTE/TLB/2005/4.
  58. Wang, J. and Trbojevic, V. (2007), Design for safety of marine and offshore systems, IMarEST, ISBN: 1-902536-58-4.
  59. Wang, X. and Triantaphyllou, E. (2005), Ranking irregularities when evaluating alternatives by using some ELECTRE methods, OMEGA. doi:10.1016/j.omega. 2005.12.003.
  60. Wang, Y. (2004), Development of a computer-aided fault tree synthesis methodology for quantitative risk analysis in the chemical process industry, PhD thesis, Texas A&M University
  61. Ward, S. (2005), Risk management organization and context.
  62. Wheelen, T.L. and Hunger, J.D. (1995), Strategic management and business Policy, 5th Ed., Addison Wesley, Reading, MA.
  63. Williams, C., Smith, M. and Young, P. (1995), Risk management and insurance, 7th Ed., Mc-Graw Hill International, New York.
  64. World Bank (2007), The international bank for reconstruction and development. Port Reform Toolkit. 2nd Ed.
  65. Woxenius, J., Roso, V. and Lumsden, K. (2004), "The dry port concept - connecting seaports with their hinterland by rail", Proceedings of the 1st International Conference on Logistics Strategy for Ports. China, Dalian.
  66. Yuksel, I. and Dagdeviren, M. (2007), "Using the analytic network process (ANP) in a SWOT analysis - A case study for a textile firm", Inform. Sciences, 177, 3364-3382. https://doi.org/10.1016/j.ins.2007.01.001

Cited by

  1. A Study on International Freight Forwarders’ Risk Management Strategies - Using the AHP Method - vol.24, pp.4, 2016, https://doi.org/10.15735/kls.2016.24.4.005
  2. Entropy as an Objective Function of Optimization Multimodal Transportations vol.23, pp.8, 2014, https://doi.org/10.3390/e23080946