Operational Risk Management Bahri’s concept of risk management lies in providing safety in all its operations and works on preventing major and minor accident risks within the framework of its strategic objectives and internal controls. Undoubtedly, offshore transportation involves different types of risks, especially operational risks, such as terrorist attack threats, wars, piracy, ship accidents, cargo damage, sailor injuries, etc. Accordingly, the Company pays extreme attention to mitigating such risks by using appropriate risk management systems, issuing certificates, classifying equipment and procedures and delivering related trainings. The aim here is to maintain safety of the staff and cargo, ensure quality and utilize the available resources optimally. That being said, the Company has concluded insurance agreements to protect its carriers, cargo, crew and staff from the rel- evant risks. The insurance service provider is selected through monitoring and assessing the provider’s affordability, technical capacity, and obligations prior to and during the period of insurance to get the best offers. The Company is a member of a group of Protection and Indemnity clubs (i.e. non-profit insurance associations). These clubs represent a strong voice for the members. During the club meetings, significant issues related to shipping industry are discussed. The clubs also participate in drafting the international legislation and agreements in coordination with the governments and international agencies (e.g. International Maritime Organization, EU, OCED, United Nations Commission on International Trade Law (UNCITRL), etc.). Furthermore, such clubs provide opportunities to exchange experience among the members regarding operational and offshore transportation risks such as oil pollution, maritime security, as well as other potential risks against ship crew. In addition, the Company provides insurance coverage to its fleet against damage to vessel hull, machinery and machinery operation, collisions, and other maritime accidents. The insurance coverage also includes ship equipment such as forklifts, cranes and containers against any potential risks.
Implementing its strategic plans, the Company decided to contract the best international insurance companies rated “A” at least by S&P, and the Company obtained the best insurance coverage in terms of benefits and price.
The Company expanded the insurance coverage to include demurrage and defense, an insurance policy covering the Company’s representation with various entities such as shipyards as well as sale, purchase and repair of ships.
Pursuant to the Company’s mission to provide due care to its employees, the Company provides medical insurance to its employees and their dependents with the best benefits and Takaful insurance is provided to all staff covering death or disability.
The Company also insures its other assets such as buildings, offices, equipment and vehicles.
The Company always seeks to mitigate and prevent risks as much as possible while conducting periodical review of the insurance quotes offered by the service providers to minimize the costs without affecting the insurance benefits and effective participation to improve the quality of the services provided by Bahri.
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Annual Report 2014
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