1. Class and risk management Shipping and the Law Naples, 3 October 2013 Philippe BOISSON

2. Class and risk management The risk management philosophy Implementation of risk management methods New approach in the maritime safety regulatory regime Classification and risk management approach Goal Based Standards and Common Structural Rules Classification rules for very large vessel Classification of ships/units in Arctic conditions Risk based design Consequences for the shipping community

3. The risk management philosophy • Traditional way to produce safety regulations based on a deterministic philosophy being called into questions • New approaches to maritime safety with risk-based rulemaking • Risk definition • Risk management recognised as a part of good management practise The three stages Identify Measure/ Evaluate Action(s) Risk Management – the two key questions What are the consequences if the risk does occur ? What is the chance of the risk occuring ?

4. Implementation of risk management methods • FSA: Formal Safety Assessment • Applied in many sectors regarded as risk-prone • Offshore industry : the Safety Case • Origin : Piper Alpha accident (1988) • Norway and the UK both shifted from prescriptive to goal‐setting regulation • Requires a Safety Case to make the case to the regulator that the proposed installation and its operation are safe

5. New approaches in the maritime safety regulatory regime:Formal Safety Assessment (FSA) • Introduced in 1993 by UK at IMO • Defined as “a rational and systematic process for accessing the risk related to maritime safety and the protection of the marine environment and for evaluating the costs and benefits of IMO’s options for reducing these risks” • FSA Guidelines defined by IMO • Applied to high-speed craft, oil tankers (propulsion and emergency steering devices), bulk carriers (Double Side Skin) • Series of problems raised by FSA • Possible links between FSA and GBS

6. Preparatory Step Step 1 Hazard Identification Step 2 Risk Assessment Step 3 Risk Control Options Step 4 - Cost Benefit Assessment Step 5 - Recommendations for Decision Making FSA: A five step risk based approach

7. Classification and risk management approach • Genesis of classification rules • State of the art of the naval architecture • Return of experience • 3 factors have impacted new rules • Development of GBS • New technical challenges • Recognition of alternative design

8. Goal Based Standards (GBS) and Common Structural Rules (CSR) TIER I Goals IMO Functional requirements TIER II Verification criteria TIER III IACS Prescriptive Regulations & Class Rules TIER IV INDUSTRY Applicable industry and Code of Practice TIER V

9. Classification rules for very large vessel • Mega containerships • New hydro structural issues in design and verification processes • Springing and whipping phenomena • Slamming effect • Very Large Ore Carriers • Procedure for directly calculating fatigue assessment • Advanced calculations ensure that all critical structures are adequately designed to meet specified fatigue and strength requirements • Ultra Large Crude Carriers

10. Classification of ships/units in Arctic conditions The Northern Sea Route (NSR) • NSR cargo transit is growing • 2012 : 46 transits (1.3 M tons) • 2021 : 40 M tons (est.) • Bureau Veritas Artic initiatives • Ice Class Rules and Notations • IceSTAR Software Tool • Direct Calculation of ice loads for a Panamax bulk carrier • Design considerations/studies of a LNG carrier/FPU for operation in the Arctic NSR 6,920 nm (*) SCR 11,430 nm (*) (*) = Hamburg - Shanghai

11. Risk base substantiation alternative designs • Risk analysis: a recognized means to support design • well established in the offshore industry • when designs have to met specified safety criteria set by an operator or a regulation authority • Ship design to be risk-based ? • SOLAS reg. II-2 /17 allows alternative designs to be substantiated by a risk analysis for passenger ships • It provides flexibility in order to adapt safety measures to novel designs in a reasonable manner, as long as the proposed alternative is demonstrated to be as safe as the prescriptive solution.

12. Conclusion: consequences for the shipping community • New duties for class societies • Integrates risk-based methods in formulating new rules • Rules Implementation : risk-based inspection • Class provider of risk services • Shipowner to assume a greater responsibility • Ships at a minimum level of safety • TMSA programme for tankers • IMO : the future of maritime safety