Risk Management
Risk Management
The BCL Operating Framework document, which sets out the Company’s approach to delivering consistently high levels of business performance based on the principles of good corporate governance and the effective management of risk across the BCL organisation. Risk Management is the first agenda item at every monthly Board meeting.
BCL’s risk management framework can be considered in the context of three principal risk categories :-
Personal Risk
Personal Risk
BCL is committed to maintaining the highest standards of health, safety and environmental (“HS&E”) management, both on-shore and at sea for its employees, contractors, customers and all other parties affected by its activities.
The Company operates a strict HS&E management policy, the details of which are prominently displayed at every one of BCL’s operational offices, and compliance with this policy is monitored on a continual basis throughout the Company. Seafarers and contractor are made aware of the Company’s HS&E policy as part of any contractual relationship. Staff training, including awareness of safety hazards, forms a critical component of personnel risk management. In the case of seafarers working on managed vessels, use of the in-house training function operated by the Company ensures that seafarers understand the key policies and procedures prior to embarking.
BCL’s strong track-record of managing crew member risk is recognised by its customers, who are increasingly prioritising employee safety and welfare as a core part of their own global HS&E strategies.
Operational Risk
Operational Risk
BCL is committed to maintaining the highest standards of health, safety and environmental (“HS&E”) management, both on-shore and at sea for its employees, contractors, customers and all other parties affected by its activities.
The Company operates a strict HS&E management policy, the details of which are prominently displayed at every one of BCL’s operational offices, and compliance with this policy is monitored on a continual basis throughout the Company. Seafarers and contractor are made aware of the Company’s HS&E policy as part of any contractual relationship. Staff training, including awareness of safety hazards, forms a critical component of personnel risk management. In the case of seafarers working on managed vessels, use of the in-house training function operated by the Company ensures that seafarers understand the key policies and procedures prior to embarking.
BCL’s strong track-record of managing crew member risk is recognised by its customers, who are increasingly prioritising employee safety and welfare as a core part of their own global HS&E strategies.
Business Risk
Business Risk
A fundamental requirement for any successful ship manager is ensuring the efficient and uninterrupted operation of customers’ vessels and minimising for the customer the risks associated with the day to day operation of their vessels, such as Port State detentions or marine incidents.
BCL closely monitors its performance through the use of its proprietary ShipSure ERP platform (which is described in more detail below) to ensure that the highest standards of service are delivered consistently to customers. As part of this process, a range of Key Performance Indicators are generated and regularly analysed to allow an assessment of the Company’s performance at various levels (e.g. by vessel, fleet officer and division), including indicators of operational safety and crewing, technical, purchasing and financial performance.
BCL mitigates its operational risk exposure through conducting customer due diligence and vessel inspections as part of a risk assessment exercise prior to taking on new business.
Should any incident nevertheless occur as a result of BCLs negligence, gross negligence or wilful misconduct, the contract provides for liability to be limited between BCL and the ship owner to an amount typically equal to 10 times the annual fee earned for the management of the individual vessel. Such potential liability is covered through BCL’s full Errors, Omissions and Indeminty insurance provided by the International Transport Intermediary Club, which covers all of the Company’s ship management contracts and provides cover of up to US$20 million per claim, with a deductible of US$100,000 per claim. Further details of the Company’s contractual and insurance arrangements are set out in the Corporate Matters section of this Memorandum.
