RISK ASSESSMENT PROCEDURE

- Contents -

1. General

1.1 Objectives 1.2 Scope of application 1.3 Key terms

2. Responsibility and Authority

2.1 D.P(Designated Person) 2.2 Manager of main charge 2.3 Master 2.4 Safety officer

3. Risk assessment

3.1 Preparation and plan of risk assessment 3.2 Risk assessment 3.3 Method of risk assessment 3.4 Risk Grade 3.5 Review and approval of risk assessment 3.6 Countermeasures for the risk assessment 3.7 Risk control affairs on shipboard 3.8 Identification of new risk 3.9 Monitoring and Improvement

* Attached Samples

1) A list of risk assessment and work Sheet

2) Risk register form

3) Risk Identification report form

This procedure is intended to give a reference for standard of risk assessment

procedure to ship owners/operators in accordance with revision and implementation

on ISM Code clause 1.2.2 which will enter into force on 1st July 2010. Korean

Register of shipping accepts no liability for the content of this procedure or the

consequences of any action taken on the basis of the information provided.

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Rev. No. : Revision history

Chapter Rev.No. Date Details

Date implemented Division

Written by Review by Approved by

Title / Name

Signature

Date

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Rev. No. : 1 : General

1.1 Objectives

The purpose of this procedure is to control all of the risks on-board and to ensure

the safety quality system effectively through implementation of risk reduction measure

or preventive actions for the risk factors which is identified with the potential risk in

safety and health activities for the ship and crews across the fleet.

1.2 Scope of application

(1) Planned and unplanned activities of key shipboard operation

(2) The change of working condition and operational circumstance

(3) The change of personal resource

1.3 Key terms (Refer to OHSAS 18001:2007 "Terms and definitions")

(1) Incident

work -related event(s) in which an injury or ill health(regardless of severity) or fatality

occurred, or could have occurred

(2) Accident

an incident which has given rise to injury, ill health or fatality

(3) Hazard

source, situation, or act with a potential for harm in terms of human injury or ill

health, or a combination of these

(4) Risk

combination of the likelihood of an occurrence of a hazardous event or exposure(s)

and the severity of injury or ill health that can be caused by the event or exposure(s)

(5) Hazard Identification

process of recognizing that a hazard exists and defining its characteristics

(6) Risk Assessment

process of evaluating the risk(s) arising from a hazard(s),taking into account the

adequacy of any existing controls, and deciding whether or not the risk(s) is

acceptable

(7) Acceptable Risk

risk that has been reduced to a level that can be tolerated by the organization having

regard to its legal obligations and its own OH&S policy

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2.1 DP(Designated person)

(1) Preparation, implementation and general management of risk assessment plan

(2) Setting up and distribution of Standards for the risk assessment and grade

(3) Review and approval of suitability, effectiveness for risk assessment

(4) Evaluate periodically the implementation of the risk assessment and risk control

2.2 Manager of main charge(ex. Safety quality/Marine affairs/Marine technology Team)

(1) Risk assessment for the task in charge

(2) Preparation of risk assessment and risk register

(3) Training shore-based personnel and ships' personnel for the technique of the risk

assessment and risk control

(4) Updating of safety and health information related to task in charge

(5) Control the record related this procedure

2.3 Master

(1) Training ships' personnel for risk assessment and risk control

(2) Implement and evaluate the affairs of the risk control on board

(3) Identify potential risk on board and report it to company ("risk identification report")

(4) Control the record related this procedure

2.4 Safety officer(Designated as chief engineer or chief officer)

(1) Implement the affairs of the risk control on board

(2) Conduct tool Box Meeting before working

(3) Supervise the activities of for risk control regarding on board work

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3.1 Preparation and plan of risk assessment

3.1.1 Object of risk assessment

(1) The management of ship and all of works, activities and situations related to the ship

operation are subjecting to the object of risk assessment

(2) The subjected personnel is not limited only shipboard/office staff, such as visitors for

supplying and external contractors.

(3) The subjected vessel is including listed on the company fleet.

(4) The detailed lists for object of risk assessment are identified by "list of risk assessment"

(5) The object of risk assessment may add if required at any time.

3.1.2 Team in charge of risk assessment for each object (It can be added if required)

Team in

charge

(ex.)

Object of risk assessment (ex.)

MRT - Planned and unplanned activities of key shipboard operation

- The change of working condition and operational circumstance

MTT - The change of critical machineries and system

(including Emergency machineries)

SQT - The change of personnel resource and safety & health system

3.1.3 When to assess the risk

Division Object Interval Team

Periodical

assessment

All activities related to ship operation and

managementper year

-Captain,

C/E

-Team of

main charge

Occasional

assessment

When identify the necessity of assessment

owing to following situation;

- occurring accident

- identifying critical NC

- important change of the circumstance

related to ship operation and management

When occurredTeam of

main charge

3.1.4 Establishing assessment plan

D.P shall draw up the risk assessment plan such as its object and the schedule,

etc. for the activities and then notify it to team of main charge & vessel.

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3.2 Risk assessment

3.2.1 Recognition of Risk

(1) In case of recognizing the potential risk or the risk which was found during the

activities of team/shipboard operation, the result of risk assessment with using

following information should be forwarded to the manager of main charge.

1) Feedback information of critical operational accident

2) Uncertainty for implementation of plan including Past and present

3) The change of system

4) Potential risk of replacement and back-up equipment/system

5) The change scope of environmental condition

6) Potential risk of health and sanitary system on board the vessel

7) Contingency Plan

(2) The master shall report the safety deficiencies(accidents, near-miss, major N.C.

,etc.)that cannot be rectified by ship's crew hand immediately to Manager of

main charge. Manager of main charge shall carry out a risk assessment for the

safety deficiencies reported by ship's master before the operation continues,

and provide the risk reduction measures so as to prevent reoccurrence across

the fleet.

3.2.2 Preparation of risk assessment

(1) GENERAL

-To make an entry Doc. No. according to Document management procedure

(2) OPERATION

-To make an entry kind of main activities for operation

(3) ACTIVITY

-To make an entry the detailed activities for operation each team/ship

(4) Equipment and material to be used

-To make an entry Equipment and material to be used

(5) Potential or actual risk factor

-Risk factor : To make an entry the detailed activities for operation risk factor

-A damage state: To make an entry the severest degree for the estimated result

(6) Activity division

-To make an entry planned activities with “RA”

-To make an entry unplanned activities with “NR”

(7) Damage occurrence object

-To make an entry personal resource with "W"

-To make an entry physical resource with "E"

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(8) Risk Rating

-To make an entry Risk Rating by Likelihood Rating and Potential Severity

Rating in accordance with <Table 1> RISK MATRIX

(9) Decision of grade for the risk

-To make an entry the decided risk grade in accordance with <Table 2>

ASSESSMENT STANDARD FOR RISK GRADE

(10) Risk reduction measure

-To make an entry the risk reduction measure for the decided risk grade

3.3 Method of risk assessment

To obtain the appropriate Risk Rating(R) for each activity:

(1) Rating the Potential Severity(Consequence)of the identified hazard as 1, 2 or 3

(2) Rating the Likelihood(Frequency) of the hazard happening as 1, 2 or 3

(Risk Rating (R)) = (Potential Severity Rating) x (Likelihood Rating)

<Table 1> RISK MATRIX (ex.) (A data of rating depends on company's policy.)

Division

Potential Severity Rating(Consequence)

3 2 1

Fatality10 days + lostproperty damage or environmentalremedial cost>50,000 USD

Injury5 days + lostproperty damage or environmentalremedial cost=30,000 USD

Minor injury1 day + lostproperty damage or environmentalremedial cost<10,000 USD

Likelihood Rating (Frequency) Unacceptable

Major Risk(Intolerable)

RR = 9

Major Risk(Substantial)

RR = 6

Controllable severe risk(Moderate)

RR = 33 Likely to occur innext 12months

2 Likely to occur innext 2, 3years

Major Risk(Substantial)

RR = 6

Controllablesevere risk(Moderate)

RR = 4

Tolerable Risk RR = 2

1 Unlikely to occur

Controllable severe risk(Moderate)

RR = 3

Tolerable RiskRR = 2

Minor Risk(Trivial)RR = 1

Shaded areas indicate that risks are adequately controlled and tolerable. Therefore,

it means that stipulated safeguards/precautionary measures are effectively implemented.

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3.4 Risk Grade

- The risk grade for the risk assessment is decided by Risk degree of "Assessment

standard for risk grade".<Table 2>

<Table 2> ASSESSMENT STANDARD FOR RISK GRADE

Risk grade Risk degree Measures and period

E

(1)

Minor Risk

(Trivial)

These risks are considered acceptable. No further action is

necessary other than to ensure that the controls are maintained.

D

(2)

Tolerable

Risk

No additional controls are required unless they can be implemented

at a low cost(in terms of time, money and effort).Actions to further

reduce these risks are assigned low priority. Arrangements should

be made to ensure that controls are maintained.

C

(3-4)

Controllable

severe risk

(Moderate)

Consideration should be given as to whether the risks can be

lowered, where applicable, to a tolerable level, and preferably to

an acceptable level, but the costs of additional risk should be

taken into account. The risk reduction measures should be

implemented within d defined time period. Arrangement should be

made to ensure that the control measures are maintained,

particularly if the risk levels are associated with harmful

consequences.

B

(6)

Major Risk

(Substantial)

Substantial efforts should be made to reduce the risk. Risk

reduction measures should be implemented urgently within a

defined time period and it might be necessary to consider

suspending or restricting activity, or to apply interim risk control

measures, until this has been completed. Considerable resources

might have to be allocated to additional control measures.

Arrangements should be made to ensure that the control measures

are maintained, particularly if the risk levels are associated with

extremely harmful consequences and very harmful consequences.

A

(9)

Unacceptable

Major Risk

(Intolerable)

These risks are unacceptable. Substantial improvements in risk are

necessary, so that the risk is reduced to tolerable or acceptable

level. The work activity should be halted until the risk controls that

are implemented reduce the risk so that it is no longer very high.

If it is not possible to reduce the risk that the work should remain

prohibited.

3.5 Review and approval of risk assessment

3.5.1 Review

D.P shall consider the following items for the risk assessment reviewing.

(1) Whether Hazard and Risk for the ship' operation is omitted or not.

(2) Suitability for the applied risk grade by assessment standard for risk grade.

(3) Reference of SHEQ manual, regulations, Near-miss and accident cases.

(4) Necessity for the Improvement and reflection of SMS manual.

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3.5.2 Approval and distribution

(1) The risk assessment sheet written by each team shall be collected and reviewed by

the manager of main charge.

(2) D.P shall review and approve the suitabilities for the risk assessment finally.

(3) Approved assessment sheet shall be distributed to each team and ship.

3.6 Countermeasures for the risk assessment

(1) D.P shall manage the risk reduction measures for risks grade A, B & C

identified by the risk assessment process with Risk Register Book

(2) D.P shall establish the safety goals and improvement plans for higher risks

grade A, B identified by the risk assessment process with Risk Register Book

(3) D.P shall apply lessons learnt including the applicable risk reduction measures

from the result of risk assessment across the fleet.

(4) D.P shall share with best practices experienced across the fleet and maintain a

data of all risk assessment generated across the shore and fleet.

(5) Manager of main charge shall analyze a data of all risk assessment generated

across the shore and fleet and apply to improve the Safety Management System

for them.

3.6.1 Describe followings on the Risk register book

(1) Team of main charge/Date

(2) Detailed activity / related work

(3) Identified risk

(4) Present risk rating

(5) Improvement(Risk reduction measure)

(6) Team/Duty in charge of risk assessment

(7) Related document

3.6.2 D.P shall approve the risk register book which was established , and the team

manager of main charge shall distribute it to each team/vessel.

3.7 Risk control affairs on shipboard

3.7.1 The application of risk assessment

The object of risk assessment on shipboard includes this procedure of "Chapter 3.1.1

Object of risk assessment" and following items.

(1) Hot work

(2) Enclosed space entry

(3) Aloft/outboard and asbestos work

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3.7.2 Risk assessment in need of company's approval

The following risk assessment shall be approved by team of main charge in

company, and the relevant work can be started after approval.

(1) General affairs not less than risk grade 'B'

(2) Hot work

- All hot works except workshop in engine room irrespectively risk grade in tanker

- Not less than risk grade 'B' work in other vessel

(3) Enclosed space entry

- Not less than risk grade 'B'

(4) Aloft/outboard and asbestos work

- Not less than risk grade 'B'

* The above (2),(3),(4) works need to carry out ' permit to work' and ‘risk

assessment' at a time.

* The company can designate serious works on shipboard other than the above

(2),(3),(4) works.

3.7.3 Responsibility and Authority, A time of risk assessment

(1) Responsibility and Authority

1) Duty officer (a person who in charge of work )

- Preparation of 'a risk assessment work sheet' before starting work

2) Safety officer

- First review

3) Master

-Final approval of a risk assessment work sheet

(2) A time of risk assessment

1) Before starting work (Only registered work on a list of risk assessment )

2) Master shall review & approve a risk assessment work sheet before starting work

3) In case of a change to planned work, the risk shall be reassessed before

starting work

(3) Safety officer shall carry out the following affairs

1) Before starting works, the"Tool box meeting"including belows should be conducted

*Works which "Tool Box Meeting" should be conducted are identified in the list of

risk assessment.

2) Provide the "Risk assessment work sheet" related to planned work to attending

workers

3) Awaken workers to the potential hazard in planned work

4) Take proper action to remove potential hazard

5) Loudly read potential hazards all together

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3.7.4 Method of risk assessment

(1) Draw up risk assessment work sheet

1) Recognition of the object of risk assessment

-Follow the this procedure of 'Chapter 3.1.1 Object of risk assessment'

2) Determination of risk grade

-Follow the this procedure of 'Chapter 3.2.2 Preparation of risk assessment'

(2) Approval of risk assessment work sheet

1) Risk assessment work sheet shall be reviewed & approved by safety officer and

master.

2) The following works need an approval by team of main charge in company

- Not less than risk grade 'B' : Safety quality team

- Hot work : Marine technology Team

- Enclosed space entry : Marine technology Team

- Aloft/outboard and asbestos work : Marine technology Team

3.8 Identification of new risk

3.8.1 Identification of new risk on shipboard

(1) Ships' personnel who find new risk during work shall report it to the safety officer

orally or in writing

(2) Safety officer shall record all of the risks which was found by himself and reported

by others, and report to the master.

(3) The master shall review the "Risk identification report" written by safety officer

and submit it to the company.

3.8.2 Identifying new risk by shore based personnel

Shore based personnel shall draw up the "Risk identification report" for all of the

risks found during their duty and submit it to the team of main charge.

3.8.3 Addition of the object of the risk assessment

(1) The manager of main charge shall review the "Risk identification report" received

from ship & shore based personnel, and if necessary , identify it as the object of

the risk assessment.

(2) The risk assessment for above identified object should be conducted according to

"chapter 3.2 risk assessment of this procedure.

3.9 Monitoring and Improvement

(1) D.P shall review the suitability of risk assessment standards(index, grade)

annually and shall revise the standards, if required.

(2) The manager of main charge shall analyze a data of all risk assessment

generated across the shore and fleet and manage it.

(3) The master shall manage all risk assessments generated on board the vessel

and submit it to the manager of main charge in company.