Port risk management is proactive and tries to prepare for the eventuality of a risk before an event happens. It adopts a dynamic, integrated and value-driven approach to build resilience in organizations, which goes beyond identifying, assessing, and evaluating threats or even opportunities. It also enhances the organizational resilience value proposition and integration in multiple hierarchies and departments, learning from successes and failures.
According to the Institute of Risk Management, the main components include:
- Horizon scanning (HS);
- Information security;
- Communications and liaison;
- Planning and coordination;
- Training and exercises; and
- Continuous improvement.
Port disruption/crisis management is reactive and implemented at the onset of a disruption where the managerial, labour and physical resources are mobilized. The main components include:
- Incident response;
- Business continuity;
- Recovery; and
- Crisis communication.
Production recapture is the ultimate goal of port crisis management, as it aims to ensure that operational capabilities are able resume according to pre-event standards. To clear the accumulated backlog from a disruption, ports can make up by handling more cargo once they become operational after the event, which is possible if the event is of short duration (hours to a few days). Port crisis management may require substantial labour and managerial effort, and coordination with hinterland transportation.