Risk Management is a segment in our vertical which ensures the company’s competitive and profitability positioning is strengthened via a strong risk management model. Operating in an environment of permanent volatility, companies across shipping industries face extraordinary challenges related to the profitability and sustainability of operations.
BainBridge Navigation’s risk management model helps address these challenges with confidence. We reduce the organization exposure to risk, lessen the associated complexity that comes with every transportation and actively manage the problems by strengthening this platform to drive the profitability towards sustainable growth.Our risk management structure and resolutions cover:
Our risk management structure and resolutions cover:
PERIOD TONNAGEThe risks involved here include fluctuations in earnings, costs and exchange rate. As a resolution strategy, we hedge 70 pct of our period tonnage against cargo bookings including the COAs and FFAs.
FAILURE TO HONOR CONTRACTS BY CUSTOMERSCustomers sometimes fail to honour the contract, and this becomes a major risk associated with the business. We have internal risk control mechanisms to mitigate this problem. It includes inspecting the credit profile of the counterparts, continually updating ourselves with the industry scenarios, thereby accurately forecasting the status. In the initial stages, we assess the situation thoroughly to see if they are worth the risk by looking at their credit scores. This ensures we get into business with people who have clean track records.
THE STAFFBusinesses are successful when people show responsibility towards their work and are content at the same time. To keep up with the market trends, we consistently organize training sessions to upgrade the skills of our people.
WELLNESS, SAFETY AND THE ENVIRONMENTThe work environment should be healthy and safe for everybody. The safety measures are always intact to provide a sound working space for our people. Our vessels have security measures to ensure impeccable services.We promote the protection of the environment from pollution and strictly adhere to the highest environmental standards.
FINANCIAL RISKSWe secure the financial aspects by ensuring effective liquidity at all times. We have put aside funds for immediate purposes which are easily accessible in case of emergencies.
CYBER SECURITY RISKSAs the technology advances, comes the associated risk of cyber-crime. For this, we have a reliable IT support system in place that can handle any threat. The hardware, the software and the systems are frequently reviewed for our cybersecurity team.
3RD PARTY DEFAULTS AND SUITSWe are covered under a reputed IG group of P&I club for Defense and Liability covers which helps us in protecting from any 3rd party defaults and suits and also assists us in recovery of costs on default on counter parties including legal costs incurred.
Further, we also provide complimentary “Liability Insurance Cover” to all our uninsured Charterers free of cost.