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Recent well-publicized cruise and ferry ship accidents have been a wake-up call to the shipping industry. These events raise the need for ship owners to use more advanced risk management approaches. Enterprise Risk Management (ERM) has become an integral part of modern corporations, especially in safety critical industries where unsafe operations can lead to catastrophic accidents that result in loss of life, huge financial losses and the potential demise of the corporation. This paper presents the current findings of an on-going research to determine the best implementation of a Risk Management System (RMS) integrated with the Safety Management System (SMS) at cruise and ferry operating companies. The hypothesis is that ship management companies with better enterprise risk management will have better safety records and stronger financial performance. The paper presents the results of the application of Systems-Theoretic Accident Model and Processes (STAMP)/Systems Theoretic Process and Analysis (STPA) to a ferry operator to analyse the organizational performance of their risk and safety management systems. Initial results from the analysis showed gaps in communication paths, lack of tracking of risks and limited involvement of senior management in the risk process. A preliminary approach to deriving key indicators is presented.

Use of STAMP/STPA to Model Organizational Risk and Safety Management at Cruise and Ferry Companies