Preparing for a Grey Rhino Event
No business operates in a vacuum. Instead, we are all part of a complex and competitive ecosystem – beholden to market dynamics and shifts in public attitudes that are largely beyond our control. The shipping industry is not exempt from these external forces and must constantly adapt; whether to new regulatory requirements or other, more singular and individual levers.
One area where some industry players are already going beyond legal minimums is sustainability and the safeguarding of the environment. The shipping industry is taking an increasingly proactive approach to environmental-related risk and spill response is at the top of their agenda; preparing for both the black swan and grey rhino events to mitigate potential long-term business impacts.
Black swan events still happen - never underestimate the impact of the highly unlikely
A grey rhino, something you can see coming – but only if you are willing to look
Determining the likely long-term business impact of any event relies on calculating the potential reputational cost
The shipping industry has made huge strides towards safeguarding its people and the environment but the downtrend in oil spill has plateaued in recent years
The universal commitment of shipping owners and operators to invest the required resources to identify and negate potential grey rhino events is still to be evident
Plan for the best, prepare for the worst
Overall, it is vital to embrace the old adage, ‘plan for the best, prepare for the worst’. The unpredictability of a spill, the impact it can have on the environment, and on the responsible party’s business, now calls for a more prudent approach to regularly reassess potential risks and their consequences, and to apply commensurate levels of risk mitigation. Grey rhinos may be difficult to spot but the cost of not preparing for them is undoubtedly greater.
No organisation is immune to a crisis - are you ready?
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