Safety management systems explained: the ISM Code and domestic vessels

Why safety management systems exist

Many marine casualties have been traced to management failures as much as to equipment or individual error: unclear responsibilities, procedures that existed on paper but were not followed, and problems reported but not acted upon. The SMS approach responds to that by requiring operators to define how they manage safety, to record it, and to check regularly that it works.

The ISM Code for ships

The International Safety Management Code is made mandatory for most ships on international voyages through Chapter IX of SOLAS. It sets objectives that include providing for safe practices in ship operation and a safe working environment, assessing all identified risks to ships, personnel and the environment, and continuously improving the safety management skills of personnel ashore and aboard.

To achieve this, the Code expects each company to have a safety management system that includes a safety and environmental protection policy, instructions and procedures for safe operation, defined levels of authority and lines of communication between shore and ship, procedures for reporting accidents and non-conformities, procedures for preparing for and responding to emergencies, and procedures for internal audits and management reviews.

Key roles and documents under the ISM Code

• The company: the owner or the organisation that has taken on responsibility for operating the ship. It holds a Document of Compliance once an audit confirms its system meets the Code.
• The ship: each ship holds a Safety Management Certificate once an audit shows that the company and its shipboard management operate in accordance with the approved system.
• The designated person ashore: a person with direct access to the highest level of management, who monitors the safety and pollution prevention aspects of each ship’s operation.
• The Master: the Code recognises the Master’s overriding authority and responsibility to make decisions about safety and pollution prevention and to request the company’s assistance as needed. The company must support the Master in carrying out their duties.

Safety management for Australian domestic vessels

Domestic commercial vessels have a different system. AMSA states that all domestic commercial vessels must have a safety management system, and that it records how the owner or operator meets the general safety duties under the national law. The system should cover matters such as safe operating procedures, crew qualifications and training, vessel maintenance, emergency procedures, health and safety and continuous improvement.

AMSA publishes guidance on what a system should contain. The detailed requirements for vessels in Classes 1 to 4 are in Marine Order 504, and AMSA has announced changes to the SMS requirements that came into effect on 1 June 2025, including matters such as fatigue management and drugs and alcohol, and a simplified SMS option for some smaller vessels. Check AMSA’s current guidance for the requirements that apply to a particular vessel.

General safety duties

The national law places general safety duties on owners, masters, crew and others. In simple terms, people must take reasonable steps to ensure the safety of the vessel and the people on board and to avoid harm to others. The SMS is how an operator demonstrates that it is meeting those duties. AMSA’s page on general safety duties explains who the duties apply to and what they involve.

What makes a system work

• Reporting: people must feel able to report hazards and near misses, and see that something happens as a result.
• Drills and training: emergency procedures are practised, and the lessons are recorded and acted upon.
• Records: logs, checklists and maintenance records show that procedures were actually followed.
• Audit and review: internal audits and management reviews check whether the system works and drive changes.
• Leadership: masters and senior officers set the tone, by following procedures themselves and responding constructively to reports.

Preparing to talk about it

1. Explain in your own words what an SMS is and why it exists.
2. Describe the main elements of the ISM Code system, and the roles of the company, the designated person and the Master.
3. Explain how audits lead to the Document of Compliance and the Safety Management Certificate.
4. For a domestic vessel, explain how the SMS demonstrates the general safety duties and where the detailed requirements are found.
5. Prepare a real example of reporting a non-conformity or near miss, and what changed as a result.

Official sources

This guide was written from the following sources. Requirements change, so confirm the current position with the source before relying on it.

• IMO: International Safety Management (ISM) Code
• IMO: SOLAS, International Convention for the Safety of Life at Sea
• AMSA: Safety management systems (domestic commercial vessels)
• AMSA: General safety duties for domestic commercial vessels
• AMSA: Domestic commercial vessels

Related certificate guides

• Master Unlimited
• Chief Mate Unlimited
• Master <45 m Near Coastal
• Master <100 m Near Coastal
• AMSA oral exam preparation guide

Keep reading

• Master Unlimited oral exam: the themes behind the questions
• Chief Mate Unlimited oral exam: the themes behind the questions
• Australian maritime law and marine orders: a map for seafarers
• Near coastal certificates explained: how the domestic pathway fits together
• Maritime glossary for plain-language definitions of the terms used here.
• More in Safety management, or browse the knowledge centre.