SCO
Acceptance letter
Written confirmation that a party accepts specific commercial or documentary terms.
Decision caution: It does not by itself prove financial capacity, authority or product existence.
Executive knowledge centre
Executive Glossary and Business Vademecum
Clear, operational definitions of terms, abbreviations and acronyms used in strategy, finance, risk, operations, logistics, corporate governance, technology and international trade.
225 terms available
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A
Governance and people
Accountability
The obligation to answer for an outcome, explain decisions and correct deviations.
Decision caution: It is not limited to carrying out assigned tasks.
Incoterms
Ad valorem freight
Freight calculated according to the declared value of the cargo.
Decision caution: It must be distinguished from freight based on weight, volume or units moved.
POP
After receipt of POP
A procedural condition triggering an obligation after product evidence is received.
Decision caution: It must define which document qualifies as POP and who verifies it.
SCO
Agency fee
Agreed remuneration for an intermediary involved in a transaction.
Decision caution: It should be documented with mandate, scope, accrual and authority limits.
Tank Storage
Allocated tank
A tank identified as reserved or linked to a specific transaction.
Decision caution: Allocation should be confirmed with the terminal operator through an independent channel.
International trade
Allocation
A documented assignment of a quantity of product, capacity or supply to a party.
Decision caution: An allocation letter does not necessarily prove current availability or a right to resell.
Allocation
Allocation holder
Party claiming to hold a product or capacity allocation.
Decision caution: Title, validity, resale right and documentary traceability must be tested.
Allocation
Allocation letter validity
The period, conditions and scope under which an allocation letter can be used.
Decision caution: An expired or unverifiable letter cannot support a buying decision.
Risk and compliance
AML
Policies and controls designed to prevent money laundering.
Decision caution: Specific obligations depend on the jurisdiction and on whether the party is a regulated or otherwise obliged entity.
Governance and people
Anchoring
A bias in which an initial number or reference point influences subsequent judgements.
Decision caution: An anchor may be useful in negotiation, but it does not replace objective criteria.
Strategy
Ansoff matrix
A framework for structuring growth through market penetration, market development, product development or diversification.
Decision caution: Each option carries a different level of uncertainty.
Technology and data
API
An interface that allows applications or systems to exchange data and functions in a defined way.
Decision caution: The existence of an API does not guarantee that integration will be simple, secure or stable.
Crude
API gravity
Density measure used to classify crude oils as light, medium or heavy.
Decision caution: It does not by itself determine commercial quality or refining value.
Incoterms
Arrival notice
Notice about the expected or actual arrival of cargo or vessel.
Decision caution: It should be checked against port data, shipping agent and transport documents.
Jet A1
ASTM D1655
Reference technical specification for Jet A and Jet A1 aviation fuel.
Decision caution: It must be checked against the quality certificate and delivered batch.
EN590
ASTM D975
US specification for diesel fuels, distinct from EN590.
Decision caution: It should not be treated as an automatic substitute for EN590 in European contracts.
Incoterms
ATB berth
Port berth where a vessel is moored for loading or discharge.
Decision caution: Berth availability does not equal product availability.
SCO
Authority to sell
Documented capacity of a party to offer or sell product.
Decision caution: It must be verified with the principal, not only through forwarded documents.
SCO
Authority to verify
Express permission to confirm documents with issuer, terminal, bank or inspector.
Decision caution: Refusal to verify through an independent channel is a red flag.
B
Incoterms
Barge nomination
Formal designation of a barge for loading, discharge or transfer.
Decision caution: It should include identity, operating window, permits and product compatibility.
Governance and people
BATNA
The best alternative available if a negotiation does not result in an agreement.
Decision caution: It should be realistic and executable, not merely a rhetorical threat.
Strategy
BCG matrix
A framework that classifies businesses or products by market growth and relative market share.
Decision caution: It is a simplification and does not replace analysis of cash, margin and competitive position.
Incoterms
Berth window
Time slot assigned for a vessel to operate at berth.
Decision caution: A provisional slot may be lost if documents or payments are not ready.
International trade
Bill of Lading
A maritime transport document evidencing receipt of goods and the terms of carriage and, in some forms, operating as a document of title.
Decision caution: Its legal and operational function depends on the type of bill issued.
SGS
Bill of Quantity
Inspection document certifying quantity measured under an agreed method.
Decision caution: It must state scope, measurement point, date and inspection entity.
Strategy
Blue Ocean Strategy
The search for market space in which a differentiated value proposition reduces direct competition.
Decision caution: It does not mean the market will remain free of competition.
Operations and logistics
Bottleneck
A resource or process stage whose capacity constrains overall throughput.
Decision caution: Optimising non-constraining stages may not improve the overall result.
Finance
Break-even point
The sales level at which revenue exactly covers fixed and variable costs.
Decision caution: It does not by itself show how much cash is required to reach that volume.
Incoterms
Bunker fuel
Fuel used by vessels for propulsion or auxiliary generation.
Decision caution: It should not be confused with the cargo being transported.
Risk and compliance
Business continuity
The ability to maintain or recover critical activities following a disruption.
Decision caution: It is not limited to technology backups.
C
Sales and marketing
CAC
The average cost of acquiring a new customer, including attributable sales and marketing activity.
Decision caution: It should be assessed against contribution margin and customer lifetime value.
Sales and marketing
Cannibalisation
The loss of sales from an existing offer caused by another offer from the same company.
Decision caution: It may be acceptable if it improves margin, retention or strategic position.
Finance
CAPEX
Investment used to acquire, improve or extend the useful life of long-term assets.
Decision caution: It should be distinguished from recurring operating expenditure.
SCO
Cargo readiness
State in which cargo is physically and documentarily ready to operate.
Decision caution: It should be verified with inventory, terminal, quality and disposition authority.
Finance
Cash flow
The net movement of cash over a period.
Decision caution: Profit and cash flow are not the same thing.
SGS
Certificate of Analysis
Document recording technical test results on a sample.
Decision caution: Its value depends on sampling, laboratory, date and match with the batch.
SCO
Certificate of Origin
Document declaring the country of origin of goods.
Decision caution: It does not by itself prove ownership, quality or current availability.
Incoterms
Charter party
Contract for using a vessel in whole or part under agreed terms.
Decision caution: It should be reviewed with laytime, demurrage, ports and responsibilities.
Sales and marketing
Churn
The percentage of customers, contracts or revenue lost over a period.
Decision caution: The metric should specify whether it is measured by customers, revenue or units.
EN590
CI DIP and Pay
Procedure where checking, inspection or dip precedes payment.
Decision caution: It must define who inspects, what is measured and when risk transfers.
International trade
CIF
A maritime Incoterm under which the seller arranges carriage and insurance to the named destination, while risk transfers at origin when the goods are on board.
Decision caution: Paying costs to destination does not mean the seller bears transit risk to destination.
Sales and marketing
CLV / LTV
The expected economic value of a customer relationship over its lifetime.
Decision caution: It is highly sensitive to assumptions about retention, margin and discounting.
SCO
Commercial invoice draft
Preliminary invoice used to align transaction data.
Decision caution: It should not trigger payment without contract, authority and documentary controls.
SCO
Commodity tranche
Part of a total quantity negotiated for separate delivery or payment.
Decision caution: It must avoid ambiguity in price, schedule, quality and guarantees.
Strategy
Competitive advantage
A condition that allows a business to create more value, or create it at lower cost, than competitors over a meaningful period.
Decision caution: Not every difference constitutes a sustainable advantage.
Risk and compliance
Compliance
The system used to identify obligations, prevent breaches and respond to deviations.
Decision caution: It is not merely a manual or an isolated legal function.
Governance and people
Conditional concession
A concession offered only in exchange for a defined counter-concession.
Decision caution: Unilateral concessions weaken negotiating leverage.
Risk and compliance
Conflict of interest
A situation in which a personal or connected interest may interfere with impartial judgement or decision-making.
Decision caution: It should be disclosed, assessed and managed; simply denying influence is not sufficient.
SCO
Contracted quantity
Volume of product committed in contract or accepted offer.
Decision caution: It must be distinguished from available, inspected or transferred quantity.
Finance
Contribution margin
Revenue less variable costs, showing how much each sale contributes to fixed costs and profit.
Decision caution: It does not include all structural costs.
Sales and marketing
Conversion
The proportion of people or opportunities that progress to a defined action.
Decision caution: The numerator, denominator and measurement period should be stated clearly.
Strategy
Core competence
A central capability that materially contributes to customer value and can be applied across different businesses.
Decision caution: It is not synonymous with any internal skill.
Strategy
Critical assumption
An assumption that, if false, materially changes the viability of a decision.
Decision caution: It should be framed so that it can be tested.
Technology and data
CRM
A system for managing customer relationships, opportunities, activity and customer data.
Decision caution: A CRM system does not by itself correct weak commercial discipline.
Sales and marketing
Cross-selling
Selling complementary products or services to an existing customer.
Decision caution: It should create value rather than add complexity without margin.
Crude
Crude assay
Technical profile of crude oil describing yields and relevant properties.
Decision caution: It should be dated and tied to the evaluated origin or batch.
Crude
Crude slate
Combination of crude oils processed or planned by a refinery.
Decision caution: Compatibility depends on refinery configuration, logistics and specifications.
Technology and data
Cybersecurity
Measures used to protect systems, networks, identities and data against unauthorised access, alteration or disruption.
Decision caution: Cybersecurity is not limited to antivirus software and cannot be delegated entirely to a third party.
Operations and logistics
Cycle time
The time required to complete one unit or stage of a process.
Decision caution: It should be measured consistently and separated from waiting time.
D
International trade
DAP
An Incoterm under which the seller delivers the goods ready for unloading at the agreed destination.
Decision caution: The buyer normally handles import clearance.
Technology and data
Data governance
The set of responsibilities, rules and controls governing data ownership, quality, access and use.
Decision caution: It is not solely an IT-department responsibility.
Incoterms
Deadfreight
Cost for booked transport capacity that is ultimately not used.
Decision caution: It should be governed by the charter or transport contract.
Governance and people
Delegation
The assignment of authority and responsibility to decide or execute within defined limits.
Decision caution: Delegation does not remove the duty to supervise.
Incoterms
Demurrage
Charge for exceeding allowed loading or discharge time.
Decision caution: It must be calculated according to laytime, exclusions and operating records.
EN590
Density at 15C
Standardized density measure for comparing petroleum products.
Decision caution: It should appear in the quality certificate with test method.
Risk and compliance
Detective control
A control designed to identify an error, breach or incident as it occurs or after it has occurred.
Decision caution: Detection is not the same as correction.
Tank Storage
DIP test
Physical measurement of tank product level through an agreed procedure.
Decision caution: It requires authorized access and defined party attendance.
Strategy
Distinctive capability
A capability that is difficult to imitate and enables a superior or differentiated outcome.
Decision caution: It should be demonstrated through results rather than asserted as a generic attribute.
Finance
DSCR
The ratio of cash flow available for debt service to scheduled principal and interest payments.
Decision caution: A value above 1 does not by itself guarantee future solvency.
TTT
DTA Dip Test Authorization
Authorization to execute or attend a tank dip test.
Decision caution: A fake or unconfirmed DTA may support a simulated product claim.
Risk and compliance
Due diligence
A process of investigation and verification carried out before a decision, contract, investment or business relationship.
Decision caution: It does not eliminate risk; it reduces uncertainty and documents the limits of what has been established.
E
Finance
EBIT
Earnings before interest and taxes; a measure of operating profit after depreciation and amortisation.
Decision caution: It is not equivalent to cash generated.
Finance
EBITDA
Earnings before interest, taxes, depreciation and amortisation.
Decision caution: It is not cash flow and does not remove capital expenditure or working-capital requirements.
EN590
EN590 10 ppm
Common reference to diesel with maximum sulphur content of 10 ppm under EN590.
Decision caution: It must be checked with method, batch, origin and current certificate.
EN590
EN590 batch
Identifiable quantity of EN590 product tied to documents and tests.
Decision caution: Without a defined batch, documentary verification loses precision.
EN590
EN590 certificate mismatch
Mismatch between quality certificate and product, batch, date or terminal.
Decision caution: It must be resolved before accepting payment, title or transfer.
EN590
EN590 flash point
Safety parameter indicating minimum temperature for flammable vapour emission.
Decision caution: It must be verified by recognized method and within specification.
EN590
EN590 sulphur content
Critical parameter for environmental compliance and commercial specification.
Decision caution: Out-of-limit values may make product unusable for the agreed destination.
Technology and data
ERP
An integrated system used to manage business processes and data such as finance, procurement, sales, inventory and production.
Decision caution: Implementing an ERP without redesigning data and processes can simply digitise inefficiency.
Incoterms
ETA
Estimated time or date of arrival of vessel, barge or cargo.
Decision caution: It is an estimate and should be updated from a reliable operating source.
Incoterms
ETB
Estimated time or date of berthing.
Decision caution: It does not guarantee immediate start of operations.
Incoterms
ETC
Estimated time or date of completion of operations.
Decision caution: It may change due to weather, congestion, inspection or documentation.
Technology and data
ETL
The process of extracting, transforming and loading data between systems.
Decision caution: Transformation rules and quality controls should be documented.
Finance
EVA
Economic profit after deducting the cost of capital employed.
Decision caution: The result depends on accounting adjustments and the cost of capital used.
International trade
EXW
An Incoterm under which the seller makes the goods available at its premises or another named place, with minimal obligations.
Decision caution: It may be unsuitable where the seller must participate in export formalities.
F
International trade
FCA
An Incoterm under which the seller delivers the goods to the carrier or other party nominated by the buyer at the agreed place.
Decision caution: The exact place of delivery should be specified.
Operations and logistics
Fill rate
The percentage of demand fulfilled immediately from available stock.
Decision caution: It is not equivalent to OTIF or to overall service level.
SCO
Firm offer
Offer with sufficiently defined terms and validity period.
Decision caution: It must be distinguished from a commercial invitation or non-binding proposal.
International trade
FOB
A maritime Incoterm under which risk transfers when the goods are on board the vessel at the agreed port of shipment.
Decision caution: It is generally not recommended for containerised transport when delivery to the carrier occurs before loading on board.
Crude
Free water
Separated water visible or measurable in a hydrocarbon tank or sample.
Decision caution: It affects net quantity, quality and economic valuation.
Incoterms
Freight on board evidence
Documentary evidence linked to delivery under FOB terms.
Decision caution: It must align with port, vessel, date, B/L and risk transfer.
Jet A1
Fuel quality certificate
Technical document certifying fuel quality parameters.
Decision caution: It must be tied to the batch, not only to the generic product.
SCO
Full Corporate Offer validity
Period during which a Full Corporate Offer may be accepted.
Decision caution: An expired FCO should not be used as payment documentary basis.
G
SCO
Goods readiness notice
Notice that product is ready for inspection, loading or delivery.
Decision caution: It should be supported by documents, terminal and operational availability.
Finance
Gross margin
Revenue less the costs directly attributable to the goods or services sold.
Decision caution: The definition of direct cost should be consistent across periods.
Tank Storage
Gross observed volume
Volume measured under actual conditions before corrections.
Decision caution: It must be distinguished from net and standard volume.
H
Crude
H2S content
Presence of hydrogen sulphide in crude or product.
Decision caution: It has safety, transport and refinery acceptance implications.
POP
Hard POP
Product proof considered strong because it includes verifiable operational evidence.
Decision caution: It should be contractually defined; there is no single universal standard.
I
International trade
Incoterms
Rules published by the International Chamber of Commerce that allocate costs, risks and logistics obligations between seller and buyer.
Decision caution: They do not determine title, payment or every aspect of the contract.
Governance and people
Independent director
A board member without relationships that compromise independent judgement.
Decision caution: Formal independence does not guarantee effective independence.
Risk and compliance
Inherent risk
The level of risk that exists before controls or mitigation measures are applied.
Decision caution: It should be assessed before residual risk so that controls are not overvalued.
SGS
Inspection nomination
Formal appointment of an inspection entity for a transaction.
Decision caution: It should be confirmed directly with the entity and scope of work.
SGS
Inspection scope
Set of tests, measurements and verifications assigned to the inspector.
Decision caution: A limited scope does not prove matters outside its perimeter.
Operations and logistics
Inventory turnover
The number of times average inventory is sold or consumed during a period.
Decision caution: It should be assessed alongside margin, availability and obsolescence.
Finance
IRR
The discount rate at which the net present value of an investment equals zero.
Decision caution: It can be misleading for non-conventional projects or when comparing projects of different scale.
J
Jet A1
Jet A1 density
Quality and volumetric calculation parameter for aviation fuel.
Decision caution: It should be reviewed with temperature and batch certificate.
Jet A1
Jet A1 freezing point
Temperature at which fuel may form crystals affecting operation.
Decision caution: It is critical for aviation and must meet applicable specification.
Jet A1
Jet A1 recertification
Documentary or analytical review confirming current fuel quality.
Decision caution: It should apply when storage, time or operating conditions change.
Jet A1
Jet fuel contamination
Presence of water, particles or other contaminants in aviation fuel.
Decision caution: It may prevent aviation use even if other parameters appear correct.
K
Operations and logistics
Kaizen
Continuous improvement through frequent, measured changes sustained by the people who perform the work.
Decision caution: It should not become an accumulation of unprioritised initiatives.
Governance and people
KPI
A key indicator used to measure the performance of an activity or outcome.
Decision caution: Not every measurable data point is a key performance indicator.
Risk and compliance
KYB
The process of identifying and verifying a business, its activity and its beneficial owners.
Decision caution: It should include corporate structure and ultimate ownership or control.
Risk and compliance
KYC
The process of identifying and understanding a customer or counterparty, including activity, ownership and risk profile.
Decision caution: Collecting documents is not sufficient unless they are verified and kept up to date.
L
Incoterms
Laycan
Agreed date range for vessel arrival or availability.
Decision caution: Missing laycan may trigger cancellation, demurrage or renegotiation.
Incoterms
Laytime
Allowed time for loading or discharge before demurrage accrues.
Decision caution: Its calculation depends on contract, excluded events and valid notices.
Operations and logistics
Lead time
The total elapsed time from the start of a request or process until completion or delivery.
Decision caution: The start point, end point and measurement conditions should be defined.
Operations and logistics
Lean Management
A management approach focused on eliminating waste and improving flow, quality and continuous learning.
Decision caution: Reducing resources without understanding the flow is not Lean management.
International trade
Letter of Credit
A bank undertaking to pay subject to the compliant presentation of specified documents.
Decision caution: Banks examine documents, not the goods themselves.
Incoterms
Letter of indemnity
Commitment to cover risks from acting without documents or under special terms.
Decision caution: It can be risky if it substitutes essential documentary controls.
Finance
Liquidity
The ability to meet payment obligations as they fall due.
Decision caution: A solvent company can still experience a temporary liquidity shortfall.
SCO
LOI validity
Validity and scope of a commercial letter of intent.
Decision caution: An LOI does not prove funds, product or final obligation to close.
M
Operations and logistics
Make or buy
The decision whether to perform an activity internally or procure it from a third party.
Decision caution: The analysis should include total cost, capacity, control, risk and reversibility.
SGS
Marine surveyor
Professional or entity verifying condition, quantity or maritime operating facts.
Decision caution: Independence, mandate and report scope should be checked.
Strategy
Market entry strategy
The chosen route into a market, such as export, distributor, agent, alliance, subsidiary or acquisition.
Decision caution: It should consider control, investment, speed, risk and reversibility.
Sales and marketing
Market segmentation
The division of a market into groups with different needs, behaviours or economics.
Decision caution: A segment should be identifiable, reachable and actionable.
Tank Storage
Mass balance
Reconciliation of product inputs, outputs and stocks.
Decision caution: It helps detect losses, blends, errors or documentary inconsistencies.
Tank Storage
Master receipt
Receipt or custody document issued under a main operating structure.
Decision caution: It must be confirmed with issuer, terminal and identified product.
EN590
Material Safety Data Sheet
Document describing hazards, handling, transport and incident response.
Decision caution: It does not replace the quality certificate or prove ownership.
Technology and data
MFA
Authentication that requires two or more distinct factors to verify an identity.
Decision caution: The factors should be genuinely independent.
SCO
MT103 conditional
Bank payment conditioned on documentary or operational events.
Decision caution: It must be reviewed with bank and contract; not every message means irrevocable funds.
Technology and data
MVP
The minimum version of a solution needed to test a hypothesis with real users.
Decision caution: Minimum does not mean poor quality or insecure.
N
Tank Storage
Net standard volume
Volume corrected for temperature and applicable deductions.
Decision caution: It is key for economic settlement and contractual comparison.
Incoterms
NOR Notice of Readiness
Formal notice that the vessel is ready to load or discharge.
Decision caution: It must be valid under the contract to start laytime counting.
Sales and marketing
NPS
An indicator based on respondents’ stated willingness to recommend a company or product.
Decision caution: It does not replace behavioural, retention or profitability data.
Finance
NPV
The present value of future cash flows less the initial investment, discounted at a rate consistent with the risk.
Decision caution: The result depends on the cash flows, time horizon and discount rate selected.
O
Operations and logistics
Obsolescence
The loss of usefulness or value of inventory, an asset or a technology because of age, change or lack of demand.
Decision caution: It does not necessarily coincide with physical deterioration.
Operations and logistics
OEE
An overall equipment effectiveness metric combining availability, performance and quality.
Decision caution: An aggregate OEE figure can conceal different underlying causes.
Governance and people
OKR
A system that links a qualitative objective to measurable key results.
Decision caution: It should not be used as an exhaustive task list.
Tank Storage
Operational tank access
Actual ability to enter, measure or transfer product in a tank.
Decision caution: A documentary tank reference does not guarantee operational access.
Finance
OPEX
Recurring expenditure required to operate the business.
Decision caution: Accounting classification can vary depending on the nature of the expenditure.
Strategy
Opportunity cost
The value of the best alternative forgone when one option is chosen.
Decision caution: It may not appear in the accounts, but it should still be considered in the decision.
Operations and logistics
OTIF
The percentage of orders delivered in full and on the committed date.
Decision caution: An aggregate figure can conceal differences between customers or causes of failure.
P
POP
Partial POP
Incomplete evidence covering only part of existence, quality, quantity or control.
Decision caution: It should be classified as insufficient until the critical perimeter is covered.
Finance
Payback period
The time required to recover the initial investment through cash flows.
Decision caution: It normally ignores later cash flows and, in its simple form, the time value of money.
International trade
Performance Bond
A guarantee covering failure to perform contractual obligations.
Decision caution: The issuer, wording, validity period and conditions for calling the bond should be reviewed.
Strategy
PESTEL analysis
A review of political, economic, social, technological, environmental and legal factors that may affect a decision.
Decision caution: Each factor should be linked to a concrete business consequence.
Incoterms
Port agent
Representative coordinating local vessel or cargo procedures in port.
Decision caution: Its involvement does not prove title or product availability.
Incoterms
Port clearance
Permission for entry, operation or departure in a port environment.
Decision caution: It must be distinguished from customs, sanitary or terminal permits.
Sales and marketing
Positioning
The distinctive place an offer seeks to occupy in the customer’s perception relative to alternatives.
Decision caution: It is not a slogan; it should be supported by customer experience and evidence.
SCO
Pre-advice
Prior notice of documents or payment before formal issuance.
Decision caution: It should not be treated as final document or execution guarantee.
Risk and compliance
Preventive control
A control designed to prevent an unwanted event from occurring.
Decision caution: It should be distinguished from detective and corrective controls.
Sales and marketing
Price elasticity
The sensitivity of demand to changes in price.
Decision caution: It can vary by segment, channel, timing and price range.
Tank Storage
Product custody chain
Documented sequence of physical and documentary control over product.
Decision caution: Unexplained gaps reduce evidentiary strength.
Incoterms
Product lifting
Physical lifting of product from tank, terminal or delivery point.
Decision caution: It must align with title, permits, transport and inspection.
SCO
Product title chain
Sequence of transfers supporting ownership or right of disposition.
Decision caution: It requires review when brokers or mandates are involved.
International trade
Proof of Funds
Evidence that a party has the financial resources required for a transaction.
Decision caution: Unverifiable documents or bank screenshots do not constitute sufficient proof.
SGS
Proof of Inspection
Evidence that an inspection was performed under defined scope.
Decision caution: It should be confirmed with the inspector, not only by document copy.
International trade
Proof of Product
A body of evidence used to demonstrate the existence, availability and legitimate control of a commodity.
Decision caution: Isolated documents may be false, reused or insufficient to establish a right to sell.
Tank Storage
Proof of Storage
Evidence that product or capacity exists at a specific terminal.
Decision caution: It must tie tank, operator, date, authorized party and product.
Q
International trade
Q&Q
Inspection of the quantity and quality of a commodity.
Decision caution: The methodology, inspection point and issuing entity should be defined.
International trade
Q88
The official INTERTANKO CHARTERING QUESTIONNAIRE 88 family for declared tanker information and pre-fixture, nomination, commercial-vetting and operational-compatibility decisions. The current edition has OIL, OIL AND CHEMICAL, LPG and LNG variants according to tanker type and service; there is no single visually identical document for every vessel.
Decision caution: It is not a legal certificate or inspection, does not by itself prove tank cleanliness or fitness for the next cargo, and does not evidence crew wages, debts or claims. For EN590 10 ppm, separately verify previous cargoes, ROB/OBQ, stripping, washing or flushing, coatings, inspection, sampling, certificates and terminal acceptance; compatibility must not be assumed merely because the vessel previously carried a 15 or 50 ppm product.
Governance and people
Qualified majority
An approval threshold above a simple majority for particularly significant decisions.
Decision caution: It can protect minorities but can also block decisions.
SGS
Quality inspection report
Formal result of quality tests performed by inspector or laboratory.
Decision caution: It should be analysed with sample, method, scope and custody chain.
SGS
Quantity inspection report
Document reporting verified volume, weight or quantity.
Decision caution: It must state measurement conditions and applied corrections.
Governance and people
Quorum
The minimum number of members or votes required for a body to deliberate or decide validly.
Decision caution: The applicable law and constitutional documents should be checked.
R
Governance and people
RACI
A matrix identifying who is responsible, accountable, consulted and informed for an activity or outcome.
Decision caution: There should be a single accountable owner for each result.
Technology and data
Ransomware
An attack that encrypts, blocks or exfiltrates information in order to demand payment or cause disruption.
Decision caution: Payment does not guarantee recovery or prevent data publication.
SCO
Ready willing and able
Statement that a party is ready, willing and able to perform.
Decision caution: It should be supported by operational and financial evidence, not rhetoric.
Crude
Refinery acceptance
Confirmation that a refinery can process or receive a product.
Decision caution: It depends on specification, logistics, schedule and technical configuration.
EN590
Rejection limit
Contractual or technical threshold allowing rejection of off-spec product.
Decision caution: It must be defined before inspection and delivery.
Governance and people
Reservation price
The threshold beyond which a party would prefer not to conclude the agreement.
Decision caution: It should not be disclosed without a strategic reason.
Risk and compliance
Residual risk
The risk remaining after controls and protective measures have been applied.
Decision caution: A stated control does not reduce risk if it does not work in practice.
Risk and compliance
Risk appetite
The amount and type of risk an organisation is willing to accept in pursuit of its objectives.
Decision caution: It should be translated into operating limits and decision rules.
Risk and compliance
Risk map
A prioritised representation of risks by probability, impact, exposure and control.
Decision caution: Colour coding does not replace a description of causes, consequences and ownership.
Finance
ROA
Return generated relative to the total assets employed.
Decision caution: It should be compared with businesses that have a similar asset structure.
Finance
ROE
Return generated on shareholders’ equity.
Decision caution: It can increase through greater leverage even while risk also increases.
Finance
ROI
The ratio between the return attributable to an investment and the capital invested.
Decision caution: The calculation should state which return, period and investment base are being used.
Risk and compliance
RPO
The maximum amount of data loss, measured in time, that can be tolerated after a disruption.
Decision caution: It is not the same as the time required to restore the service.
Risk and compliance
RTO
The target maximum time to restore a process or system after a disruption.
Decision caution: It should be consistent with actual resources and dependencies.
S
Operations and logistics
Safety stock
Additional inventory held to absorb uncertainty in demand or supply.
Decision caution: A higher level reduces stock-outs but increases working capital and obsolescence risk.
Sales and marketing
Sales forecast
An estimate of future sales based on opportunities, historical performance and explicit assumptions.
Decision caution: Assigning probabilities without evidence can create false precision.
Sales and marketing
Sales pipeline
The set of sales opportunities organised by stage and likelihood of progression.
Decision caution: It should not be confused with a committed sales forecast.
SGS
Sampling point
Exact location where a sample is taken for analysis.
Decision caution: An unsuitable point may invalidate conclusions about the batch.
Strategy
Scenario analysis
A structured comparison of plausible futures to test how a decision changes when critical assumptions vary.
Decision caution: It is neither a single forecast nor an arbitrary list of possibilities.
SGS
Sealing protocol
Procedure for sealing samples, valves, containers or documents.
Decision caution: It should preserve integrity and traceability until analysis or delivery.
International trade
SGS
An international inspection, testing and certification company whose name is often used informally to refer to inspection reports.
Decision caution: The authenticity, scope and date of any report should be verified.
SGS
SGS appointment letter
Document appointing SGS or another inspector for a transaction.
Decision caution: It must be confirmed directly with the issuing office or official channel.
SGS
SGS report number
Unique or internal identifier associated with an inspection report.
Decision caution: A number alone does not prove authenticity without issuer confirmation.
Sales and marketing
Share of wallet
The percentage of a customer’s total spend in a category captured by a company.
Decision caution: It is not the same as market share.
Incoterms
Ship-to-ship transfer
Transfer of product between vessels under controlled operating conditions.
Decision caution: It carries specific safety, measurement, permit and contamination risks.
Technology and data
Single source of truth
An agreed source treated as the primary reference for a data point or metric.
Decision caution: It does not remove the need for traceability and controls.
Operations and logistics
SLA
An agreement defining service levels, metrics, responsibilities and consequences.
Decision caution: A metric without a clear measurement method and exclusions can create disputes.
SCO
Soft Corporate Offer
Preliminary offer with indicative terms subject to later confirmations.
Decision caution: It should not be confused with a contract or firm delivery obligation.
POP
Soft POP
Preliminary product proof with weaker evidentiary value than Hard POP.
Decision caution: It should be treated as an indication until independent verification is completed.
Finance
Solvency
The structural ability to meet obligations through the overall strength of assets, cash flows and equity.
Decision caution: It should not be confused with having cash immediately available.
International trade
SPA
A sale and purchase agreement defining the product or asset, price, delivery, payment, warranties and other terms.
Decision caution: The acronym may also refer specifically to a Share Purchase Agreement in an acquisition context.
Governance and people
Span of control
The number of people or units reporting directly to a manager.
Decision caution: The appropriate span depends on complexity, autonomy and coordination requirements.
EN590
Specification sheet
Technical summary of required or declared product parameters.
Decision caution: It must match contract and certificate of analysis.
International trade
Standby Letter of Credit
A bank undertaking that may be drawn upon if the primary obligor fails to perform.
Decision caution: It should not be treated as automatic proof of funds without banking and legal verification.
Tank Storage
Storage capacity confirmation
Evidence of available or reserved terminal capacity.
Decision caution: It must distinguish general capacity from a tank allocated to the party.
Tank Storage
Storage fee schedule
Cost structure for custody, handling or terminal stay.
Decision caution: It should be reviewed with term, minimum volume and penalties.
Strategy
Strategic priority
A decision that concentrates resources because it combines material impact, sufficient urgency and a fit with available capability.
Decision caution: A priority without trade-offs or allocated resources is only an intention.
Governance and people
Succession plan
A process for preparing successors and continuity in critical roles, ownership or functions.
Decision caution: It should not begin only when the departure is already imminent.
Strategy
SWOT analysis
A framework that separates internal strengths and weaknesses from external opportunities and threats.
Decision caution: A list without prioritisation or evidence provides little decision value.
T
Operations and logistics
Takt time
The production pace required to meet available customer demand.
Decision caution: It is not the actual cycle time of an operation.
Tank Storage
Tank calibration table
Table converting measured height into volume according to tank geometry.
Decision caution: It must be current and correspond to the exact tank.
Tank Storage
Tank farm operator confirmation
Direct terminal operator confirmation about tank, product, capacity or access.
Decision caution: It is stronger than unconfirmed intermediary documents.
Tank Storage
Tank receipt
Document indicating receipt or custody of product in tank.
Decision caution: It must link to real operator, tank, date, product and authorized party.
TTT
Tank-to-tank procedure
Operational sequence for transferring product between identified tanks.
Decision caution: It should include permits, opening/final measurement, valves, safety and title.
Operations and logistics
TCO
The total cost of acquiring, implementing, operating, maintaining and retiring an asset or service.
Decision caution: The initial price may represent only a small part of the total cost.
Tank Storage
Terminal access pass
Physical or digital authorization to access terminal facilities.
Decision caution: It does not equal right over product or transfer authorization.
Tank Storage
Terminal coordinates
Geographic location or identifier of the terminal where product is claimed to be stored.
Decision caution: It should be checked against operator, jurisdiction and actual capacity.
Incoterms
Terminal handling charge
Cost associated with loading, discharge, handling or terminal services.
Decision caution: It should be allocated according to Incoterm, contract and local practice.
Tank Storage
Terminal injection
Physical entry of product into a terminal storage or pipeline system.
Decision caution: It should be measured and documented to avoid quantity disputes.
International trade
Terminal Storage Receipt
A document issued by a terminal to evidence storage under stated conditions.
Decision caution: It should be verified directly with the terminal, including the holder’s rights over the product.
International trade
Title transfer
The point and mechanism by which legal ownership of goods is transferred.
Decision caution: It should be distinguished from transfer of risk and from physical delivery.
U
Risk and compliance
Ultimate beneficial owner
The natural person who ultimately owns, controls or benefits from an entity or transaction.
Decision caution: Definitions and ownership or control thresholds vary under the applicable rules.
Sales and marketing
Up-selling
Offering a higher-value, higher-capacity or higher-priced option within the same underlying need.
Decision caution: It should not be confused with pressuring a customer into an unsuitable option.
V
Strategy
Value chain
The set of activities through which a business creates, delivers and captures value.
Decision caution: It should not be confused with the supply chain, which is only part of the wider system.
Strategy
Value proposition
The specific reason a customer chooses an offer over alternatives.
Decision caution: It should state the benefit, intended customer and verifiable difference.
Technology and data
Vendor lock-in
Dependence on a supplier that makes switching difficult because of cost, data, contracts or architecture.
Decision caution: It should be assessed before contracting, not only when an exit is desired.
W
Finance
WACC
The weighted average cost of financing through debt and equity.
Decision caution: It is not a universal discount rate for every project undertaken by a company.
Finance
Working capital
Financial resources tied up in the operating cycle, commonly reflected in inventories plus receivables less payables.
Decision caution: Profitable growth can consume cash when working-capital requirements increase.
Z
Governance and people
ZOPA
The zone in which the limits of both parties allow a possible agreement.
Decision caution: It may not exist and should be tested before extending a negotiation.
How to use this vademecum
The definitions support business reading and decision-making. They do not replace legal, financial, tax, technical or regulatory advice where required.
Back to Executive ToolsWithin the framework
Govern
This resource forms part of the MGS Strategic Intelligence Framework™ and should be read together with evidence, limits and review mechanisms.
Related tools
Context readings
- Porter, M. E. (1980). Competitive Strategy. Free Press.
- Porter, M. E. (1985). Competitive Advantage. Free Press.
- Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Free Press.
- Kaplan, R. S. and Norton, D. P. (1996). The Balanced Scorecard. Harvard Business School Press.
- Christensen, C. M. (1997). The Innovator’s Dilemma. Harvard Business School Press.
Review the criteria, scoring and limitations of the methodology.