Bahri Annual Report-2011

The National Shipping Company of Saudi Arabia


Financial Operations

seeks to avoid the risk of inflation, credit risk and fluctuation in exchange and interest rates to determine the best ways to minimize financial risks; furthermore, explore available opportunities to invest its cash surplus.

The Treasury Department is responsible to monitor the financial markets, analyze data and assess market trends and follow-up changes in exchange and interest rates. By taking necessary measures, the Treasury Department The Information Technology Department applies the best practices in the areas of systems security, protection of computer hardware, software, information media, IT and communications software. In this regard, the

Information Security

IT Department has adopted a set of software in order to ensure safety and confidentiality of the Company information and to protect such information from unauthorized access.

Operational Risk

One of the main objectives of the Company’s management is to minimize operational risks through securing insurance coverage in appropriate ways with the best benefits and at the lowest cost. For this reason, the management of Bahri seeks to be up-to-date of the latest developments in the insurance coverage. Bahri constantly strives to improve the current status of all types of insurance coverage in order to avoid redundancy in some areas of the insurance policies held by the Company. The strategic plans of Bahri’s fleet expansion recognized that there will be a need for new competitive insurance bids that would provide a combination of the best types of insurance benefits. In this regard, Bahri’s management is keen to review the services of insurance providers on an ongoing basis to assess their financial positions, their capability to meet their obligations and technical abilities. Bahri will also solicit the assistance of specialized consultancy firms in this field.

crew working on board the Company’s fleet, civil liability arising therefrom and the consequent sea risks. In fact, certain countries stipulate that all the vessels calling any port in their country must have adequate insurance coverage compatible with the requirements of those countries. Non-maritime insurance: This includes coverage of the Company’s buildings, office equipment, vehicles and personnel as needed; in addition to, medical insurance for Company personnel. Protection & Indemnity (P&I) Clubs: The size of Bahri’s fleet and its position qualify it to be an active member of the two largest P&I Clubs in the United Kingdom, which provide coverage of risks arising from incidents of damage to the fleet and its cargo. The Company is a member of the boards of these two clubs, which would be of benefit to Bahri as manifested in the exchange of experience and consolidating knowledge of operational risks and Takaful insurance.

Maritime Insurance: This includes insurance coverage of the fleet, equipment,

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