Management Audits

VRM1 185

As a mutual organisation, it is extremely important for the Club to sometimes review the effectiveness of the safety and environmental management systems controlling our entered tonnage, to ensure that undue risks are not presented to the Membership, in accordance with the International Safety Management (ISM) Code. For example, the need typically arises due to a changing trend in vessel Port State Control deficiencies or an increasing vessel ‘claims record’.  Consequently and in line with best management practice, it is the Club’s policy to work with our Members, by engaging the services of an ISM Risk Consultant, to sample elements of the management system and to advise on a continual improvement programme.

Management system reviews are always undertaken by independent consultants, and in order to ensure the highest possible degree of consistency in the quality of reporting, a limited number of companies are used for this work. The role of the Loss Prevention Department in relation to Management Audit is to identify and instruct the most appropriate consultant to inspect a vessel, and then to carefully review the findings of the visit in order to advise the Club’s underwriter with regard to issues that adversely affect risk. Thereafter the Loss Prevention Department will work with the ship owner or operator, to ensure that any follow-up action that may be required to deal with deficiencies is implemented, thereby reducing undue risk.

In addition to these formal arrangements, through their regular contacts with Members, the Managers may arrange any assistance that might be required to address any issues that may be of concern in relation to risk management.