Methods of risk management in maritime activities as a function of sustainable development

Abstract

Modern business operations of maritime companies impose the necessity of taking into consideration the risk factor; where the management is obliged to take account of it and to learn how to manage risk. Risk can be generally defined as a combination of probabilities for an event to happen causing consequences that arise from that event. In any business activity there are possible events which represent opportunities or threats to success. The focus of an effective risk management should be directed to its identification and handling of identified risks. Effective management increases the probability of success and reduces at the same time the probability both of failures and of uncertainty. When strategic risk management is applied, the organisation can balance its exposure to risk and enjoy more certainty when accepting risk which is necessary to create new services, business models and new ways of competition in the world market.