Subscribe to our Mailing Lists (It's free!)
Friday, July 4, 2025
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    AP Companies: How physical and mental well-being shape happier ships

    AP Companies: How physical and mental well-being shape happier ships

    bali indonesia

    Ferry sinks off Bali with multiple casualties

    Year in Review: How the Russian invasion of Ukraine affected shipping in 2022

    LR: New requirements for lifting appliances and anchor winches

    “What is our risk appetite?”

    Two crew members accused over deadly tanker collision

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

    public speaking

    8 Key rules of Public Speaking

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    hull

    AkzoNobel: Quality antifouling coatings can help with CII and EEXI compliance

    nuclear power

    Nuclear shipping inches closer to reality: Latest developments

    nuclear energy ABS

    Consortium advances floating nuclear power for the Mediterranean

    CSA scrubbers

    CSA urges OSPAR to improve understanding before enacting scrubber ban

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

    abs training center

    ABS opens smart training center in Athens

    iaph cyber security

    IAPH releases cyber security guidelines for new port technologies

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

    PSC

    AMSA Annual PSC Report: ISM-related deficiencies on the lead

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    European Commission EU

    EU in discussions over maritime and port strategies

    underwater noise from ships

    AMSA: Reduction of underwater radiated noise from shipping

    nuclear energy ABS

    Consortium advances floating nuclear power for the Mediterranean

    Germany shadow fleet

    German Government increases vigilance in the Baltic Sea

  • Columns
    AMPI: Seafarers face critical risks in pilot transfer rigging

    AMPI: Seafarers face critical risks in pilot transfer rigging

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    human factor organizational safety

    Cracking the safety code: Why human factors matter

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    AP Companies: How physical and mental well-being shape happier ships

    AP Companies: How physical and mental well-being shape happier ships

    bali indonesia

    Ferry sinks off Bali with multiple casualties

    Year in Review: How the Russian invasion of Ukraine affected shipping in 2022

    LR: New requirements for lifting appliances and anchor winches

    “What is our risk appetite?”

    Two crew members accused over deadly tanker collision

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

    public speaking

    8 Key rules of Public Speaking

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    hull

    AkzoNobel: Quality antifouling coatings can help with CII and EEXI compliance

    nuclear power

    Nuclear shipping inches closer to reality: Latest developments

    nuclear energy ABS

    Consortium advances floating nuclear power for the Mediterranean

    CSA scrubbers

    CSA urges OSPAR to improve understanding before enacting scrubber ban

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

    abs training center

    ABS opens smart training center in Athens

    iaph cyber security

    IAPH releases cyber security guidelines for new port technologies

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

    PSC

    AMSA Annual PSC Report: ISM-related deficiencies on the lead

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    European Commission EU

    EU in discussions over maritime and port strategies

    underwater noise from ships

    AMSA: Reduction of underwater radiated noise from shipping

    nuclear energy ABS

    Consortium advances floating nuclear power for the Mediterranean

    Germany shadow fleet

    German Government increases vigilance in the Baltic Sea

  • Columns
    AMPI: Seafarers face critical risks in pilot transfer rigging

    AMPI: Seafarers face critical risks in pilot transfer rigging

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    human factor organizational safety

    Cracking the safety code: Why human factors matter

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

“What is our risk appetite?”

by Nikos Kefalas
July 16, 2018
in Loss Prevention, Opinions
Mineral cargoes

Above image is used for illustration purposes only

FacebookTwitterEmailLinkedin

Nikos Kefalas, HSSE/QA Manager at LNG Shipmanagement provides his thoughts in risk assessment processes. Mr. Kefalas tries to identify how much risk a company can tolerate, saying that this process is complicated and dynamic, as different operation parameters, have to be taken into account.

During any risk assessment process, we all have a clear goal, at the best of our ability to reduce risks as low as practical possible. Although, we are operating in environment that the risk of tasks or operations is never zero, so one of the most challenging questions we are facing quite often is “how much risk is acceptable?”, “how much risk we can tolerate?”, “what is our risk appetite?”.

[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]

“Tolerable risk is determined by the search for an optimal balance between the ideal of absolute safety and the demands to be met by a product, process or service, and factors such as benefit to the user, suitability for purpose, cost effectiveness and conventions of the society concerned.”

RelatedNews

NMA: Emergency stop & regular function testing of safety devices

Cracking the safety code: Why human factors matter

The process of identify the company’s risk tolerance is complicated and also dynamic, and needs a good analysis of different parameter of our operations. From my experience, a key factor in this process is good understanding the bigger picture (interested parties – organizational capacity – resources – internal process – business environment). Also is critical to identify the benefits to be obtained by the amount of risk reduction and the resources needed to achieve those reductions that always become an important factors. Finally we should be able to identify underline elements of our operation that effect the risk appetite.

In the ship management industry two elements that are always have an underlining impact in this risk tolerance levels are: a) we are an industry that the changes and new standards is a constant element of our operation (new trades, ports, customers, regulations etc) and b) the majority of our operation is under a multicultural and international environment. Both elements influence the understanding, perception and tolerance at risk.

  • The “acceptable” level of individual or teams risk is may slowly rising as we are exposed to new changing environment that may look familiar or feel confident about the hazards controls. We have used to be resilient in change and new challenges that sometimes makes feel that the risk we can tolerate is higher that may be.
  • Most of the individual or teams risk tolerance levels are depending to social, political, education and professional background. Because of that individual or teams have adopted a unique “grey area” or negotiable risk band between the unacceptable and acceptable range of risk.

The two elements above are very dynamic and each organization should always have a clear understanding of the company culture and business environment in order to be able to manage it. But I feel is a key factor in order to define or evaluate our company’s risk tolerance and appetite.

We should recognize that a universal definition of an acceptable risk level cannot be attained because of the many variables. In the end, it is our responsibility to answer the question “How safe is safe enough?” by understanding our people, our business environment and using the company’s values and business ethics.

 

The views presented hereabove are only those of the author and not necessarily those of SAFETY4SEA and are for information sharing and discussion purposes only.

Above article has been initially published in Nikos Kefalas LinkedIn account and is reproduced here with author’s kind permission.


Written by Nikos Kefalas

“What is our risk appetite?”Nikos Kefalas is an experienced HSSE/QA Manager with a  history of working in the maritime industry. He is also skilled in Marine Assurance, TMSA compliance, Safety Management, ISO standards and Crisis Management.

“What is our risk appetite?”“What is our risk appetite?”
“What is our risk appetite?”“What is our risk appetite?”
Tags: risk assessmentsafety culturesafety measures
Previous Post

Two missing after boat collides with oyster barge in Virginia

Next Post

IMO Sec-Gen highlights key maritime issues during trip to China

Nikos Kefalas

Nikos Kefalas

Nikos Kefalas is an experienced HSSE/QA Manager with a history of working in the maritime industry. He is also skilled in Marine Assurance, TMSA compliance, Safety Management, ISO standards and Crisis Management.

Related News

Persian Gulf
Loss Prevention

West P&I Club: Navigating the Persian Gulf in 2025

June 27, 2025
Day of the Seafarer 2025
Seafarers

IMO Sec-Gen: No one should feel alone in their struggle

June 24, 2025
LR: Good data is a crucial foundation for improving safety
Opinions

LR: Good data is a crucial foundation for improving safety

June 23, 2025
CINS
Loss Prevention

CINS issues guidance on shipping lithium-ion cells in containers

June 23, 2025
Maersk Israel
Ports

Maersk suspends vessel calls at the Port of Haifa, Israel

June 20, 2025
BSEE
Alerts

BSEE: Bypassed safety device deficiencies and noncompliance

June 11, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Explore more

No Result
View All Result
MARITIME EVENTS

Explore

  • Safety
  • SEAFiT
  • Green
  • Smart
  • Risk
  • Others
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Content Marketing
  • Contact

© 2025 SAFETY4SEA

No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA

Manage your privacy
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Manage options
{title} {title} {title}
No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA