Shipping Risk Survey
25 October 2019
Sound enterprise and business risk management are making an improved contribution to commercial success in the shipping sector according to our survey. But the industry still needs to improve its risk management procedures in the face of a growing level of threat to its security.
Respondents to the survey rated the extent to which enterprise and business risk management is contributing to the success of their organisation at an average 6.4 out of a possible maximum score of 10.0, compared to 5.9 in the 2018 survey. The survey was launched in 2015 with a rating of 6.9.
Owners posted the highest score of all main respondents, followed by managers, but the ratings for charterers and brokers were significantly down on last year. Asia was ahead of Europe in terms of geographical sentiment, but both were behind the Middle East.
Shipping is a highly entrepreneurial business, and entrepreneurialism and risk management can make uncomfortable bedfellows when one or other is hogging most of the bedclothes. Our survey suggests that the industry needs to improve its risk management procedures. Shipping confidence may be holding up reasonably well, but shipping cannot afford to be complacent about its exposure to risk. Awareness of risk should not be confused with risk aversion, which is not - and never will be - a characteristic highly prized in the international shipping industry.”
Our survey looks at:
- Which factors pose the greatest risk
- What changes will there be to the level of risk over the next 12 months?
- How is enterprise business risk management supported by management?
- How are enterprise and business risk managed?
- What is the likelihood of material mis-statement?