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ISM Code Learning Path — Article 2 of 10
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SMS ArchitecturePolicy → Procedures → Risk Assessment → Records → Improvement
ISM Code · Article 2 of 10 Beginner

Understanding the Safety Management System (SMS)

Beginner Intermediate Advanced
Reviewed ByCapt. A. Meintjes, Maritime Compliance Expert
Last UpdatedJuly 2026
Next ReviewJanuary 2027

A DOC certificate proves a company wrote a Safety Management System down. It says nothing about whether that system actually runs the ship day to day. This lesson is about the difference — what a compliant SMS is actually built from, and how an auditor tells a real one from a filed one.

What You'll Learn in This Lesson

  • The five-stage architecture every functioning SMS follows, from policy to continuous improvement
  • The six functional requirements the ISM Code itself mandates in Section 1.4
  • How SMS documentation is actually structured — Manual, Procedure, Form, Record
  • How to self-check your own SMS against ten common readiness indicators
  • What it looks like when a company has a DOC but its SMS isn't followed on board

The SMS Architecture

Every functioning Safety Management System follows the same underlying architecture, regardless of how a company chooses to format its manual:

1Policy
2Procedures
3Risk Assessment
4Records
5Continuous Improvement

A safety and environmental policy sets the intent from top management. Procedures translate that intent into specific, repeatable instructions. Risk assessment identifies what could go wrong in a given task before it's carried out. Records prove the procedure was actually followed. And continuous improvement — internal audits, management review, corrective action — feeds what's learned back into the policy and procedures, closing the loop. A system missing any one of these five stages isn't really a management system; it's a collection of documents.

The Six Functional Requirements (ISM Code Section 1.4)

The ISM Code itself is specific about what a compliant SMS must include. Section 1.4 lists exactly six functional requirements:

#Functional RequirementIn Practice
1Safety and environmental protection policyA signed, top-management statement of intent
2Instructions and procedures for safe operation and environmental protection, compliant with international and flag State lawThe operational heart of the SMS manual
3Defined levels of authority and communication between shore and shipboard personnelWho can approve what, and who reports to whom
4Procedures for reporting accidents and non-conformitiesCovered in depth in Lesson 4
5Procedures to prepare for and respond to emergenciesDrills, contingency plans, muster procedures
6Procedures for internal audits and management reviewCovered in depth in Lesson 5

In practice, most company SMS manuals expand these six legal requirements into a broader set of ten to twelve practical chapters — separating out things like crew familiarisation, maintenance planning, and document control into their own sections — but every one of those practical chapters ultimately exists to satisfy one of these six formal requirements. If a chapter in your SMS manual can't be traced back to one of these six, it's worth asking why it's there.

SMS Document Hierarchy: Manual → Procedure → Form → Record

Auditors think in terms of a four-level document hierarchy, and understanding it helps explain why some non-conformities get raised even when "the paperwork exists":

1Manual
2Procedure
3Form
4Record

The Manual states policy and structure at the highest level. A Procedure breaks a policy statement down into a specific, step-by-step instruction. A Form is the blank template used to capture evidence that the procedure was followed. A Record is that same form, completed — the actual proof. An auditor who finds a Manual and Procedure in perfect order, but no completed Records to match, has found exactly the kind of gap this lesson opened with: a system that exists on paper but isn't demonstrably running the ship.

Download the SMS Structure Checklist (PDF)

A practical checklist mapping your SMS manual's chapters back to the six ISM Code functional requirements.

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Interactive SMS Self-Check

Answer honestly. This is a self-assessment tool, not an official ISM audit.

1. Does your SMS include a signed safety & environmental policy?

2. Can crew explain procedures, not just perform them?

3. Are levels of authority clearly defined and known on board?

4. Is every non-conformity actually logged, not handled verbally?

5. Are emergency procedures drilled with varied scenarios?

6. Are internal audits and management reviews actually completed on schedule?

7. Do completed Records actually match what Procedures require?

8. Is document control (version numbers, revision dates) actually maintained?

9. Are new crew members briefed on SMS content relevant to their role specifically?

10. Would your SMS survive an unannounced spot-check tomorrow?

SMS Readiness Score 10/10
Strong — your SMS shows signs of being genuinely lived, not just filed.

Mini Case Study: The DOC That Didn't Match the Deck

Auditor: "Your SMS states permits are reviewed before hazardous work begins. Show me the last one."

What the Company Had A valid DOC, a well-written SMS manual, and a Chief Officer who confidently described the permit process from memory — but no completed permit form could be produced for the hot work carried out the previous week.
The Finding A Non-Conformity, not because the policy was wrong, but because the Record — the fourth link in the document hierarchy — didn't exist. The SMS was real on paper and unproven on deck.

This is the single most common gap IMT sees in companies newer to the ISM Code: the Manual and Procedures are well written — often better written than the company's actual practice — while the Records that would prove the practice matches the paper simply aren't being kept consistently.

Common SMS Mistakes New Companies Make

Not Sure Your SMS Would Survive an Audit?

Talk to an IMT compliance advisor about an independent SMS documentation review.

Contact an Expert

Get Certified in ISM Internal Auditing

IMT's ISM Internal Auditor Course covers SMS documentation review, non-conformity classification, and corrective action management in depth.

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Everything from this article, in a format you can print, share, or file.

Checklist · PDF

SMS Structure Checklist

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Template · DOCX

SMS Document Hierarchy Template

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Checklist · PDF

SMS Review Checklist

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Document Control Register

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Frequently Asked Questions

How many functional requirements does the ISM Code specify for an SMS?

Six, listed in Section 1.4 of the Code — covering policy, procedures, authority levels, non-conformity reporting, emergency response, and internal audits/management review.

Why do most company SMS manuals have more than six chapters?

Companies typically expand the six legal requirements into 10-12 practical chapters for clarity and day-to-day usability, but every chapter should trace back to one of the six formal requirements.

What's the difference between a Procedure and a Record?

A Procedure is the instruction for how a task should be done; a Record is the completed evidence that it actually was done, on a specific occasion.

Can a company have a valid DOC and still fail a vessel SMC audit?

Yes — the DOC certifies the company's shore-based system; the SMC audit separately verifies that system is genuinely applied on board that specific vessel.

What's the most common SMS gap IMT sees in newer companies?

Well-written Manuals and Procedures with inconsistent Records — the paperwork describing the process exists, but proof the process was actually followed on a given occasion does not.

Test Your Knowledge

5 questions · pass with 4/5 to unlock your Understanding the SMS certificate.

1. Which stage comes first in the SMS architecture?

2. How many functional requirements does ISM Code Section 1.4 list?

3. In the document hierarchy, what proves a Procedure was actually followed?

4. An auditor finds a well-written SMS manual but no completed permit forms for recent hot work. What's the likely finding?

5. What's the most common SMS mistake newer companies make?

🏅

Congratulations!

Score: 5/5

Badge Earned — Understanding the SMS

You completed Lesson 2 / 10
Understanding the Safety Management System (SMS)
Continue: The Designated Person Ashore →

References

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