Known as an International Safety Management Code, the ISM Code is one of the aforementioned required regulations in the marine industry. It has been a very vital component of the SOLAS Convention (Safety of Life at Sea) from the 1994 year. This code was formally adopted and integrated as a part of the SOLAS Convention in this year. 
In other words, ISM code can be highlighted as an intrinsic part of the International Maritime Organization (IMO) in its efforts to ensure, maintain and effectuate safety for seafarers. It is also providing a pollution-free zone for the sector entirely.
It can be said that the code focuses on bringing aspect of marine safety to a common platform for all vessels any nationalities. This eliminates any discrepancies that could arise about the maintenance of a much-needed safety protocol.
According to the stipulations of the Code, it is mandatory that all ships follow this code. In order to execute its appropriate functionality, the International Safety Management Code is supported by a Safety Management System (SMS).
The safety management system (SMS) is an organized system which was planned and implemented by the shipping companies to ensure safety of the ship and marine environment.
SMS is an important aspect of the International safety management (ISM) code, and it details all the important policies, practices, and procedures that are to be followed in order to ensure safe functioning of ships at the sea. All commercial vessels are required to establish safe ship management procedures. SMS forms one of the important parts of the ISM code.
The safety management system (SMS) therefore ensures that each and every ship comply with the mandatory safety rules and regulations, and follow the codes, guidelines, and standards recommended by the IMO, classification societies, and concerned maritime organizations.
The Company is committed to conducting its operations to ensure safety at sea, prevention of human injury or loss of life, and avoidance of damage to property and the environment, in particular the marine environment. The Company seeks to develop, implement, and maintain standards of safety and environmental protection in line with considered reasonable and practical.
Every safety management policy should satisfy some basic functional requirements safety of every ship.
They are:
Procedure and guidelines to act in an emergency situation;
Safety and environmental protection policy;
Procedure and guidelines for reporting accidents or any other form of non-conformities;
Procedures and guidelines to ensure safe operations of ships and protection of marine environment in compliance with relevant international and flag state legislations;
Clear information on level of authority and lines of communication among ship crew members, and between shore and shipboard personnel;
Procedures for internal audits and management reviews;
Vessel’s details.
In order to achieve the above objectives the Company must adopt a safety and environmental protection policy that seeks to ensure: 
Compliance with relevant mandatory rules and regulations; and 
Recognition of applicable codes, guidelines, and standards recommended by the International Maritime Organization (IMO), relevant flag States, classification societies, and maritime industry organizations.
SMS is divided into sections for easy reference. 
They are:
General;
Safety and environmental policy;
Company responsibility and authority;
Designated person ashore (DPA);
Master’s responsibilities and authority;
Resources and personnel;
Development of plans for shipboard operations; 
Emergency preparedness; 
Reports and analysis of non-conformities, accidents and hazardous occurrences;
Maintenance of the ship and equipment;
Documentation;
Company verification, review and evaluation;
Certification, verification and control.     
These are main parts of a basic SMS; however, the plan might vary according to the type of the vessel and the cargo carried by the same. SMS plays an important role in the process of ISM code implementation on ships.