Page 14: of Maritime Reporter Magazine (April 2015)

MANAGING RISK

Risk & Reputat on in the age of Disrupt on

BY CAPTAIN

ANDREW KINSEY

Risks faced by today’s global busi- top priority for 2015. deepening their channels. A large con- ments to the vessel’s navigation, ballast nesses represent a combination of tra- Port congestion can arise from a num- tributor to this will be the Panama Canal and engineering systems. If engineering ditional concerns and newer threats that ber of factors, both natural and manmade. expansion, which will double capacity system were compromised, intruders re? ect changing times. The 2015 Allianz Labor strikes or slowdowns, which are by 2016 by creating a new lane of traf? c could shut down the propulsion to allow

Risk Barometer, a survey of more than most common during times of labor ne- for more and larger ships to transit. boarding of the vessel or cause collision 500 corporate insurance experts and risk gotiations, can play havoc with shipping if done in a choke point. The hack of a managers from 47 countries, revealed schedules. Disruptions normally take the Balancing Costs and Bene? ts navigation system could allow terrorists that issues related to business interrup- form of sporadic work slowdowns, with of Connectivity to hijack ships, resulting in a grounding tion and supply chain risk, natural catas- no discernible pattern. Certain concerns are more obvious to collision or the shutting down of a port.

trophes, and ? re and explosion continue A full-on strike can cause massive dis- shippers than others. It’s easy to see when It’s important that shipping compa- to top annual rankings. However, cyber ruption. For example, a threatened strike the bunkers are low and fuel is needed. nies be proactive in addressing cyber risks, which include cyber crime, IT fail- of 29 West Coast ports would affect an Likewise, the appearance of rust on the risk rather than reacting after an attack ures, espionage and data breaches, along estimated 12.5 percent of the nation’s vessel means repainting is required. But has occurred, when damage to the sup-

One of the most signi? cant threats to business disruption is port congestion, which has worsened noticeably in recent years.

In fact, it’s become such a widely recognized concern that the Federal Maritime

Commission has made it the top priority for 2015.

with political risks were the most signi? - gross domestic product according to the tackling something as abstract as cyber ply chain and a shipper’s reputation has cant movers. Paci? c Maritime Association. security is not an issue most crews are been exacted. Some of the steps that can

Each of these risks, along with others, Natural events, such as heavy weather, accustomed to doing. be taken include designing a network has direct relevance for the workboat in- can also create choked ports. While port The Internet is now considered essen- that’s resilient and safe, working with dustry and those for whom international congestion caused by inclement weather tial on many ocean going and coastwise an IT service to ensure appropriate sup- transport is a critical aspect of opera- can be anticipated in certain locations at vessels, offering important quality of life port and backup, training personnel to tions. By understanding and addressing certain times of year, other occurrences bene? ts to crew. The new generation of recognize risks and testing the system these risks, vessel operators can identify are less predictable. Careful planning seafarers expects to be connected all the frequently.

speci? c risk mitigation practices that can around weather can increase chances of time, and the availability of the Inter- The Internet is a feature on vessels help them operate more safely and ef? - staying on scheduling. net is important in attracting new crew that’s here to stay. Unfortunately, so is ciently, thus reducing their losses. Another major cause of port conges- members and retaining quali? ed existing the risk of cyber loss. It will always take tion is the addition of ever-larger, mega- personnel. a balancing act to make sure connectiv-

Increasingly Congested Ports container ships that can triple the amount However, connectivity also puts the ity is available to those who need it but

One of the most signi? cant threats to of cargo. The sheer volume of containers vessel at risk for cyber attacks that can carefully locked away from those with business disruption is port congestion, is starting to overwhelm major gateway have signi? cant implications, ranging sinister motives. which has worsened noticeably in recent ports, challenging their ability to unload from the loss of important data to cata- years. In fact, it’s become such a wide- import containers on a timely basis. To strophic accidents. A shipboard com- Other Risks ly recognized concern that the Federal accommodate larger ships, some ports puter network includes access to vital In addition to risks associated with

Maritime Commission has made it the are improving their infrastructure and information — from crew payroll docu- congested ports and cyber security, there 14 Maritime Reporter & Engineering News • APRIL 2015

MR #4 (10-17).indd 14 MR #4 (10-17).indd 14 4/2/2015 12:09:15 PM4/2/2015 12:09:15 PM