Lloyd’s Register services to the energy industryWhy risk management services are vital tothe oil and gas industry4th May 2011
Lloyd’s Register services to the energy industryMurphy’s Law• Alfred Holt, in his report to an engineering society in 1877, wrote, “it is found that anything that can go wrong at sea generally does go wrong sooner or later”• Lloyd’s Register, with its 250 year history of marine assurance, keenly appreciates the insight expressed by Murphy’s Law• We need to ask....is it always and necessarily true? Can diligence sometimes cancel Murphy’s Law and preparation reduce risks to acceptable levels?
Lloyd’s Register services to the energy industryDifferent kinds of risks• There are many different kinds of risks Economic Safety Technical Health Environmental• We know how to avoid many types of risk and yet things still go wrong• Very few organizations have the knowledge, skills and tools to navigate the risk assessment process successfully and come up with the optimal risk management solutions
Lloyd’s Register services to the energy industryDetermining acceptable levels of risk for your business• Companies need to pay attention to risks and have robust processes in place Identifying Decide how far to go with protective Reduce risk and mitigating measures Business Assessing Manage risk Risks Consider Examine regulatory cost regimes Correctly Recognize evaluating opportunities
Lloyd’s Register services to the energy industryDoes your company have what it takes?• Very few organizations have the requisite capabilties to navigate the risk assessment process successfully and come up with the optimal risk management solutions Knowledge Tools Skills
Lloyd’s Register services to the energy industryHow may Lloyd’s Register help? • Provide a precise framework for identifying and assessing risk • Determine optimal management strategy • Guide companies through the whole process of establishing and implementing a robust and efficient risk management system • Lloyd’s Register’s offers: Continuously developed state of the art methodology A wealth of experience gained through worldwide projects Knowledge of a vast number of areas: oil & gas, power, chemical, transportation and more Particular expertise through experience in the North Sea, since much of the development of advanced risk management tools have their origin there
Lloyd’s Register services to the energy industryExplaining and modeling risk management• The Australian standard 436:2004 offers an easy-to-follow model which Lloyd’s Register endorses Establish the context Communicate and consult Monitor and review Identify risks Risk assessment Analyze risks Evaluate risks Treat risks Risk management guideline AS/NZS 436:2004
Lloyd’s Register services to the energy industryThe advantages of implementing the Australianstandard risk management model • Allows a systematic and flexible approach to risk • Risk assessments can be done both qualitatively and quantitatively • May be applied system-wide or on a subsystem basis • Projects, changes in organization and implementation of procedures can be risk assessed
Lloyd’s Register services to the energy industryRisk management: an iterative process • In parallel with the risk assessment and the follow-up, there must be both communication with the involved parties and monitoring of the outcomes of the different steps • Risk management is an iterative process and there will always be room for improvements Communication with all parties is vital Measurement Monitoring of outcomes
Lloyd’s Register services to the energy industryKey areas of risk managment • Lloyd’s Register recommends adopting a holistic approach in handling the treatment of risk as different areas and issues within companies are always interrelated • It is vital to anticipate how change in one area will impact risk factors in the other two Technology Human Organization factors • Lloyd’s Register is uniquely placed to assist with drawing these areas together since it has deep competence within each one; ensuring a company’s risk management process involves not only the technical aspects, but also the organizational and human elements
Lloyd’s Register services to the energy industryBenefits of effective risk management• Undertaking a risk management process provides a clear and holistic view of the company, allowing opportunities to be readily identified in a wide range of areas: • Increase efficiency of operations • Reduce costs • Streamline processes for all aspects of the business• Ensure compliance with regulations• Increase efficiency of operations• Increase safety of personnel and plant Reduce the likelihood of Murphy’s Law...
For more information, please contact:Name SurnameJob title, Business unitLloyd’s Register group entity71 Fenchurch StreetLondon, EC3M 4BST +44 (0)20 7423 xxxxE firstname.lastname@example.org www.lr.org/energyServices are provided by members of the Lloyds Register Group.For further information visit www.lr.org/entities
Lloyd’s Register services to the energy industryCARVE NOTES / SUGGESTIONS• Add more images to the presentation• Please update contact information on first slide + last slides relevant to U.S. details