In this paper, first the relationship between the risk evaluation and structural reliability is introduced. Then evolution of structural reliability applied to ship structure is reviewed. Afterwards the limit state function of a damaged ship is presented with consideration of the special situations after collision and grounding. Based on the Monte Carlo simulation technique, the failure probabilities of damaged ship are obtained, given the different damage scenarios and external loads conditions. Finally, some salvaging measures based on the calculation results are discussed to lessen the risk to a damaged ship.