The paper presents an application of the modified rigid finite element method to analysis of the dynamics of slender structures. The equations of motion are formulated for a system discretized by means of the method, and discussion is limited to planar systems and large deformations. Slender elements can be found in offshore engineering as lines, cables and risers. In these cases the hydrostatic influence of water and sea currents has to be taken into account. While analyzing dynamics of risers it may also be necessary to consider the flow of fluid inside the riser. The influence of hydrodynamic coefficients and the velocity of the internal flow of fluid on displacements and forces is presented.