Recent global developments have radically transformed the landscape of maritime risk management – digitalization of marine services and the threat of large-scale coordinated cyber-attacks, the global Coronavirus pandemic and the consequent lockdown of ports and airports, and the war in Ukraine and the trade and energy sanctions imposed as a result. Suddenly, economic, political, and social factors pose a considerable threat to the growth and diversity of a large shipping organization. No longer are the risks limited to loss of cargo or vessel, the entire enterprise could be facing bankruptcy and the prospect of winding up. Thousands of seafarers are faced with job losses, long-term disability and loss of livelihood. Shipping has not always been prudent about managing risks and yet, recent developments in market conditions as well as regulatory and technical changes have imposed several limitations on the use of vessels in terms of their suitability for trading in the future.

Lack of diligence in identifying and managing risk in time can have catastrophic business outcomes for an owner. It could negatively impact a fleet’s operating performance, financial profile and share value and thereby threaten its growth in the long term. However, it is possible to reduce the level of risks by putting in place measures to eliminate or reduce them. A comprehensive risk management strategy is required. As the nature and complexity of risks change over the years, the need to put in place effective risk management measures in increasing subject to stringent regulations. Recent studies show shipping is busy shaking off years of successive economic downturns and revenue losses and readying to cash in on the recovery, but is not fully prepared to address the emerging risks.