The annual risk for collision and grounding scenarios was computed and expressed in terms of monetary units. Based on the SOLAS and MARPOL conventions damage criteria were introduced to rate the seriousness of consequences. The method was applied to an example ship that sails on a route between Cadiz and Tenerife. Main part of the risk for both collision and grounding was due to the capsizing of the ship. Our assumption of a reef close to the traffic lane and the high ship speed resulted in a probability of 50 (%) that the vessel will capsize in case of grounding. However, resulting annual risk for collision was higher than the annual risk for grounding events due to higher collision frequency, see Table 5. We emphasize that our results were sensitive to small changes of the damage criteria.