Case study: Risk Management and Lessons Learned
Maurício Landwoigt
Project Manager with PMP Certification (PMI-USA), Business Partner Franklin Covey, Processes, ESG and Speaker
Case: The cargo spill of the Rena Monrovia
Analysis problem:
Cargo spill from Rena Monrovia, damage estimated at $108 million.
Expert Opinion:
Mauricio Landwoigt, ADM, MSc, PMP, Consultant, Speaker
In this case study, we will deal with the application of risk management as a critical analysis and implementation suggestions for improving the problem project.
The Rena Monrovia cargo spill
Year: 2011
Where It Happened: Astrolabe Reef, New Zealand
Company: Daina Shipping, a subsidiary of Costamare
Estimated Damage Value: $108 million*
Some errors are caused by structural damage or other conditions that cannot be controlled. But many times, disasters can be avoided. Take, for example, the case of the cargo ship Rena Monrovia, which was traveling when it collided with New Zealand's astrolabe reef and sank in 2011.
Its cargo was dumped into the ocean, while the boat suffered a total loss as it was traveling at full speed. It cost the company $240 million to clean up the mess – and that's all because the captain and crew weren't looking where they were going.
Something tells me they lost their jobs...
In the case of the 2011 Rena Monrovia cargo spill, which occurred on Astrolabe Reef, New Zealand, the company responsible for the ship, Daina Shipping, a subsidiary of Costamare, faced damages estimated at $108 million.
Risk management
In the context of this disaster, various risk management activities could have been implemented to prevent or mitigate the damage caused. Here are some measures that could have been taken:
1. Risk assessment:
Prior to the trip, the company could have performed a full risk assessment associated with the route, including identifying potential obstacles such as reefs. This would have allowed for more adequate planning and the adoption of preventive measures.
2. Crew training and qualification:
Investing in training and ensuring that the crew is properly qualified is essential. This includes training in safe navigation, decision-making skills and situational awareness to avoid collisions and spills.
3. Constant monitoring:
Use appropriate technologies and monitoring systems, such as radars and global positioning systems (GPS), to monitor the ship's position and identify possible risks or route deviations.
In addition, maintain effective communication between the crew and the ground management team to take prompt and appropriate action in the event of an emergency.
4. Security procedures:
Establish clear safety procedures and emergency response protocols, ensuring that everyone on board the ship is familiar with these guidelines and knows how to act in risky situations.
5. Adequate insurance:
Take out comprehensive marine insurance to cover potential damage caused by accidents or spills, reducing the financial impact on your business and allowing for a faster recovery.
6. Evaluation of maritime routes:
Before sailing, it is essential to carry out a detailed analysis of the maritime routes, taking into account the presence of natural obstacles, such as reefs or sandbanks. This allows you to avoid risk areas and ensure safer navigation.
7. Regular inspection and maintenance:
Carrying out frequent inspections and maintaining proper maintenance of the ship's equipment, systems and structures are essential activities to ensure its integrity and reduce the risk of failures or accidents.
8. Implementation of emergency response protocols:
Establishing clear emergency response protocols, including procedures for handling cargo spills, is crucial. This involves training the team to take quick and effective action in case of accidents, in addition to ensuring the availability of necessary equipment and resources.
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9. Environmental monitoring:
Carrying out continuous environmental monitoring while underway can help to quickly identify any cargo spills or leaks, allowing for an immediate response to contain and minimize damage to the environment.
These measures, along with a solid safety culture, could have contributed to preventing or mitigating the damage caused by the cargo spill from the Rena Monrovia.
Lessons Learned
Considering the lessons learned from this disaster, we can consider the following points:
1. Importance of maritime security:
The incident highlights the need to prioritize maritime security at all stages of the operation. This includes proper ship maintenance, proper crew training and education, and strict compliance with maritime rules and regulations.
2. Risk management and accident prevention:
It is crucial that companies adopt appropriate risk management measures to identify, assess and mitigate the risks associated with maritime operations. This involves implementing robust policies and procedures to prevent accidents and serious incidents.
3. Effective communication and cooperation:
The Rena case highlights the importance of effective communication and cooperation between all parties involved, including the ship's crew, port authorities, salvage and emergency response companies, and government authorities.
Collaboration and proper coordination can help minimize damage and facilitate efficient response in case of accidents.
4. Continuous monitoring and surveillance:
Continuous monitoring and surveillance of the condition of ships, shipping lanes and sensitive areas such as reefs and fragile ecosystems is essential. This allows for early detection of potential threats and quick response in case of emergencies.
5. Responsibility and accountability:
The Rena case highlights the importance of responsibility and accountability on the part of companies involved in maritime operations.
It is essential that companies are held responsible for any damage caused to the environment, the local economy and affected communities, in addition to assuming responsibility for remedying the negative impacts resulting from their accidents.
6. Strengthening safety and crew training:
It is essential to ensure that ship crews are adequately trained in maritime safety measures and emergency procedures. In addition, it is important to implement strict safety practices to prevent incidents and mitigate damage in case of accidents.
7. Regular monitoring and inspections:
It is essential to carry out regular monitoring and inspections on ships and their cargo to identify potential risks. This includes checking the integrity of containers, ensuring compliance with safety regulations and performing proper preventive maintenance.
8. Compliance with environmental regulations:
Shipping companies must comply with all environmental regulations and ensure that ships are equipped with effective cargo spill prevention and response systems. Adopting appropriate environmental management measures is critical to protecting marine ecosystems.
9. Cooperation with authorities and experts:
In cases of disasters such as cargo spills, it is essential to work closely with government authorities, environmental experts and emergency response organizations. Effective cooperation helps to expedite the response, minimize environmental damage and implement appropriate recovery measures.
10. Adequate Liability and Compensation:
Companies responsible for marine accidents must be held accountable for the consequences of their actions. This involves taking responsibility for damage caused to the environment, affected communities and natural resources, as well as providing adequate compensation and mitigation measures.
These lessons learned can provide valuable guidance to improve maritime safety and prevent future cargo spills, ensuring the protection of the environment and the safety of maritime operations.
Project Management Institute (PMI-USA), www.pmi.org
Redes Sociais
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Referência bibliográfica:
https://mx.investing.com/magazine/br/erros-que-custaram-caro-para-essas-empresas/?utm_source=Outbrain&utm_medium=cpm&utm_campaign=0041dac0ede6de1021a4a7c8cdb0259168&utm_content=%5BFotos%5D+Os+7+erros+mais+caros+da+hist%C3%B3ria&utm_term=BR_Veja+%28Grupo+Abril%29_Veja+&origin=outbrain&outbrain_params[ad_id]=005090879bbf44eff9aa42b7420f50e9b4&outbrain_params[doc_title]=Erros+que+custaram+caro+para+essas+empresas&outbrain_params[doc_author]=Erros+que+custaram+caro+para+essas+empresas+-+Investing+Magazine+BR&outbrain_params[doc_id]=00a5f1271bf976713897603652d249ccf8&outbrain_params[ad_title]=%5BFotos%5D+Os+7+erros+mais+caros+da+hist%C3%B3ria&outbrain_params[publish_date]=20210707&outbrain_params[req_id]=dfcfe6546d6459d688f219ef5048e9d0&outbrain_params[source_id]=00575744c0edccb642637bdd2bc58e99d4&outbrain_params[promoted_link_id]=005090879bbf44eff9aa42b7420f50e9b4&outbrain_params[time_stamp]=20230605084355&outbrain_params[campaign_id]=0041dac0ede6de1021a4a7c8cdb0259168&outbrain_params[uuid]=5tG-tSowym0EpPtTarKBVxViCP0uLJsyX315g0zOLVoivFzJaZtpsfXNlidg2lik&outbrain_params[section_id]=00575744c0edccb642637bdd2bc58e99d4&outbrain_params[section_name]=Veja+&outbrain_params[publisher_id]=00db8f6ef5ef53d2a49c56d6f51b1043c1&outbrain_params[publisher_name]=BR_Veja+%28Grupo+Abril%29&outbrain_params[ob_click_id]=v4-ADDRuMd-1078539120&outbrain_params[android_id]=&outbrain_params[idfa]=&outbrain_params[cpc]=0.020&im_dars=1x100_3x116_5x484_7x705&dicbo=v4-ADDRuMd-1078539120
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