A sustainable and preventative risk management model for ship recycling industry

When the dynamic environment of ship recycling is considered, many different severe risks may occur. These risks affect different dimensions including people, environment and economic. The aim of the study is give a framework to guide managers and even policy makers to strive a holistic view in their preventative risk management activities in ship recycling. In this framework, which is proposed for sustainable risk management in ship recycling industry, risk areas related to occupational safety, working conditions, fluctuations in steel industry, economic cycles in construction sector and direct and indirect environmental impacts are suggested to be considered. In order to deal with aforementioned risk areas, several preventative actions are proposed such as; for people related risks, Occupational Health and Safety Assessment Series (OHSAS) implementation; for economic risks, responsiveness as a competitive strategy, and for environmental risks, green supply chain management implementation is proposed. For each action, different sub factors are defined from the literature, and for an effective implementation, fuzzy DEMATEL method is used to analyze causal link between these factors. Finally, managerial implications for sustainable risk management in ship recycling industry are presented.