DNV – Managing Risk - · PDF filedesign, construction and survey of ships....

DNV – Managing Risk

Rodney Humphrey2008-10-16

© Det Norske Veritas AS. All rights reserved. Slide 231 October 2008

DNV – an independent foundation

Our PurposeTo safeguard life, property and the environment

Our VisionGlobal impact for a safe and sustainable future


More than 140 years of managing risk

Det Norske Veritas (DNV) was established in 1864 in Norway

The main scope of work was to identify, assess and manage risk – initially for maritime insurance companies


300 offices,100 countries, 8000 employees

Head office Local offices


Maritime

15.4% of the world fleet to class (approx. 5,400 vessels)

19% of ships ordered in 2007

70% of maritime fuel testing market

Authorised by 130 national maritime authorities

Continuous high performance in Port State Control worldwide

DNV is a world leading classification society


Role of Classification Societies

Contribute to the development and implementation of technical standards for the protection of life, property and the environment.

Classification societies establish and apply technical requirements for the design, construction and survey of ships.

Classification rules are developed to contribute to - structural strength and integrity of essential parts of the ship’s hull - reliability and the function of the propulsion and steering systems, - reliability and the function of the power and auxiliary systems.

Classification societies also act as Recognised Organisations for Flag States, verifying the same vessel’s compliance with international and/or national statutory regulations.


A classification society does not - design, - build, - own, - operate, - manage, - maintain, - repair, - finance, - insure or - charter ships.

Proper and effective construction depends upon the designer and shipbuilder doing their jobs properly.

Safe operation and maintenance of a ship for its intended service depends principally upon the shipowner, the shipowner’s representatives and the crew who operate, manage and maintain the ship on a day to day basis.

Role of Classification Societies


Classification Societies set quality standards for hull, machinery and equipment and verify that ships are built and maintained according to these standards.

Classification Societies, when delegated by authorities, verify that ships are designed, built, operated and maintained according to international and national maritime safety conventions.

The Class Concept


Note, classification societies are not guarantors of safety of life or property at sea or the seaworthiness of a vessel because the classification society has no control over how a vessel is operated and maintained in between the periodic surveys.

Class Scope


Class Scope

Often seen that Certificate of Class discharges duty holders obligation for safety - incorrect.

Compliance with class and statutory requirements is considered as a minimum level of safety.

Do not cover every type of risk on every type of vessel for every situation.


Legislation / company

requirementsClass/Statutory

certificates

Required minimum level of safety

Safety Gap

Class Scope

“Adequate” Safety

No level of safety

Increasing safety

Varies from nation to nation and company

to company

Operational

Equipment

Work practices

Hazids/risks not addressed by class certificates:


Are losses/accidents reducing?

DNV, founded in Norway, with long history of maritime activity.

Vikings 1000 AD as many as two thirds may have perished.


Total Losses 1980-2002World and DNV Fleets (Ships >= 100 GT)

0

1

2

3

4

5

6

1980-89 1990-94 1995-99 2000 2001 2002

Tota

l los

ses

per 1

000

sh.y

rs.

World DNV

Source: LRFP Database

GR04 / 03m02


Lives Lost 1980-2002World and DNV Fleets (Ships >= 100 GT)

0

2

4

6

8

10

12

14

1980-89 1990-94 1995-99 2000 2001 2002

Live

s Lo

st p

er 1

000

sh.y

rs. World DNV

Source: LRFP Database

GR04 / 03m02


Number of Oil Spills per year > 700 tons

Source ITOPF


We are delivering….but the goalposts are moving – all the time!

The Reality

TIME

PER

FO

RM

AN

CE

Q

UA

LITY Tomorrow

Today

Expectations


Recent trends

Navigational accident frequency for commercial shipping (Plot is based on large container ships, ro-ro cargo, crude oil- and chemical tankers)

0

0.002

0.004

0.006

0.008

0.01

0.012

0.014

0.016

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Serio

us a

ccid

ent f

requ

ency

(Num

ber

of a

ccid

ents

/ nu

mbe

r of s

hip)


Closing the Gap – some examples

Cold Climate Operation

Fire safety

Nautical Safety

Competency


Cold Weather Operations

Range of ice notations to address safety requirements in the harsh environment.

Design requirements for anti-icing/de-icing, noise/vibrations/indoor climate, environmental protection


Fire Safety

Additional notations, focus on cost effective requirements for early detection and reduction in consequences of fire.


Nautical Safety

Voluntary notations focusing on the total bridge system

- Design of workplace- Working environment- Equipment performance and

reliabilty- Man/machine interface- Qualifications- Operating procedures.- Range of instrumentation,

Statistical evaluation of the use of the notations shows that there is a significance difference in the frequency of nautical accidents between vessels with and without these notations, by about ½.


Competence Management Certification verifies a company's ability to identify, define, develop and improve the competence of seafarers and those supporting them ashore in accordance with:

- Mandatory requirements- Customers' needs and expectations- Customers' own defined business goals

Seaskill – competence management


Future

There is always room for improvement in the way rules and regulations are developed and framed.

Safety related IMO topics on the agenda 2007-2020:- Goal based standards – outcome?- Prevention of accidents involving lifeboats- Review of the STCW Convention and the STCW Code - Comprehensive

review- Review of Principles of safe manning levels- Recovery systems for all types of ships for the rescue of persons at sea by

2012


Future

Some observed tendencies

Increased acceptance of holistic requirements?

More proactive and risk based approach?

Rule development more rational basis, using FSA techniques

More transparent, rational and cost effective process


Finally….market cyclesMarket Cycles Accident cycle after WWII

Increase risk

Decrease risk

Accident Rates


Safeguarding life, property, and the environment

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