Risks and Risk Management

ColumnRisks and Risk Management

Fishing vessels are places of work.

But they present safety hazards unlike those of most other places of work. They are on water, rather than land and can be a considerable distance from land or other potential sources of shelter or assistance, should they be needed.

Vessels react to atmospheric and ocean conditions, moving in different directions as they pitch, roll and yaw. Space on a vessel is expensive, limited and usually well-utilized, often requiring people to live and work in cramped conditions. And there is moving equipment for handling fishing gear and fish catches, which can move unpredictably if the vessel is suddenly subjected to significant force by wind or water.

For all these reasons, a fishing vessel is a hazardous workplace that often provides an unpredictable work environment. That is why fishing is generally regarded as one of the most dangerous occupations in the world.

Nevertheless, many people choose fishing as a way to make a living, essentially accepting the risks as they go about their daily tasks.

In general, the odds are in their favour. Most people who fish for a living survive the experience and live to a good age. They may have some bumps and bruises or even broken bones, but their injuries are not fatal. Injuries are just part of the price they pay for working in an extremely hazardous environment.

Unfortunately, some people are not as lucky.

The industry has a long legacy of people being lost at sea, due to vessels sinking or being tossed overboard. There is also a long legacy of people being injured in ways that are life-changing for themselves and their families. Even though the odds may be favourable, the industry still has a lot of risk and there are very real consequences.

As is the case with all types of risk, it is always a good idea to manage them as best you can. That means you need to identify the risk factors, understand them and be prepared to deal with them, in one way or another.

The first step is to identify the risks and make a list. The second step is to categorize them by how serious they are. A useful way of categorizing risks is based on a simple equation:

Risk = probability of occurrence x expected impact

In this equation, the probability of occurrence is the likelihood that a particular risk will happen. High winds and rolling seas occur frequently. Hurricanes and rogue waves do not occur often, but can happen. Impact is the expected cost, should an adverse event happen. Some costs can be measured in money. Others are measured in terms of injuries, lost fishing time, or even death.

The list of risk factors and assessing their probabilities of occurrence and expected impacts can be categorized using the table on the next page. In the table, both risks and impacts are categorized into low, medium and high. That helps to understand their relative importance and make decisions about how they should be managed.

Once risks are identified and categorized, decisions can be made about the best ways to manage them. For each risk, that requires choosing one of the four principal ways to manage risks:

  1. Accept — usually appropriate for risks that have low probability and low impact;
  2. Avoid — the opposite of acceptance, it is usually the most expensive of the options, because it requires making investments, incurring costs, and/or losing production time, so it is most appropriate for risks that have high expected impacts;
  3. Limit — the most common approach that typically includes some combination of risk acceptance and risk avoidance and
  4. Transfer — handing risk off to a willing third party, such as an insurance company.

It should be noted that transferring risk usually involves only the financial aspects of the risk and not other aspects that may also be important. For example, an insurance policy can provide the means to replace a vessel that is lost, but may not compensate for lost fishing time. Life insurance can provide money to family members following a fatality, but it won’t replace the presence of the person in their lives.

Which approach is best depends on the probability of occurrence and the severity of the expected impact. For example, a risk that has a low probability of occurrence and a low expected impact is not a major concern, even though the risk is real.

A risk that has a high probability of occurrence, but a low expected impact is of more concern. Simply because of the frequency, it is worth doing something to reduce the likelihood of occurrence.

On the other hand, a risk that has a low probability of occurrence, but a high expected impact is a very significant concern.

These are the kind of risks that led to the sinking of the Ocean Ranger and the crash of Cougar Helicopter Flight 491. Such risks may not happen often but, when they do, they are devastating, so it is well worth trying to avoid them.

Many marine risks are likely to fall into the medium-probability, medium-impact category. That means they are common occurrences and their impacts are significant — injuries, for example. Measures to manage them are well worthwhile.

Managing risks essentially means one of two things — reducing the probability of occurrence or reducing the impacts, when they occur. If weather and sea conditions are expected to be bad, for example, the probability that something will go wrong can be reduced simply by not leaving the safety of land or not having crew members working on deck.

Training crew members in how to go about their tasks in difficult conditions can also be helpful. Impacts can be reduced by having — and using — proper safety gear.

Risk is the flip side of opportunity.

People decide to fish for a living, because they see an opportunity to do so. But fishing will always be a hazardous activity, because it is subject to variable natural forces. Learning to live and work in such an environment is key to survival and success. It helps to understand risks and how to manage them.

Robert Verge
Robert Verge
Managing Director of the Canadian Centre for Fisheries Innovation — Newfoundland

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