How bp is changing


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How bp is changing

  1. 1. How BP is changing ?
  2. 2. How BP is changingIn response to the Gulf of Mexico accident in 2010, we initiated a wide-ranging programmed designed to enhance safety and risk managementwithin the group and earn back trust. Much has been achieved, but there isa great deal more to doSafety and operational riskOur independent safety and operational risk (S&OR) function is now wellestablished. A team that is now close to 600 in number, S&OR sets ourcompany-wide requirements for safety and operational risk managementand works alongside our businesses to support and scrutinize their effortstowards greater conformance.What’s next? We will continue to develop our capabilities in this area and tosupport our businesses as they continue the ongoing process ofconformance with our operating management system.
  3. 3. Risk managementWe have initiated a review of our risk management system and begunenhancing the clarity, simplicity and consistency of the way we manageand report risks. We have standardized our reporting processes so thatbusinesses and functions have a consistent way of reporting risk – fromour frontline operations to the board.What’s next? We will continue to embed the enhancements to our riskmanagement system through greater alignment of risk managementactivities and business processes.Upstream restructuringWe have reshaped our upstream business into three divisions –exploration, developments and production – and centralized our drillingwells activity into a single organization. Over the long term, we believethese changes will help foster the development of expertise andreinforce accountability for managing risk.
  4. 4. What’s next? We will continue to implement recommendations from theinternal investigation into the Deepwater Horizon accident for our drillingoperations.Values and behaviorsOur refreshed values – safety, respect, excellence, courage and one team –reflect the qualities and behaviors that distinguish BP at its best. Our valuesare explicitly linked to our code of conduct, which reflects the behaviors thatare expected of everyone who works for BP.What’s next? We will track progress through line manager discussions andperformance reviews.Contractor managementWe have conducted a best-practice review of 21 organizations that usecontractors in potentially high-consequence activities. The findings areinforming our contractor management approach.What’s next? As a priority, we are reviewing contracts in our upstreamsupply chain that involve potentially high-consequence activities.
  5. 5. Individual performance and rewardWe have aligned employee performance and reward with our values andintroduced safety and taking a long-term perspective as key indicators ofindividual performance. In annual performance conversations, staff are nowasked to set priorities on their contribution to safety, compliance and riskmanagement.What’s next? We will include BP’s overall performance in determiningindividuals’ bonuses.TechnologyWe have established four new cross-business science networks within BP.This is one part of our push to use technology more strategically throughoutour organization, helping us to develop the sustainable capabilities we needto operate effectively and meet our long-term goals as a company.What’s next? We are rolling out new formal requirements to help ourbusinesses be more consistent in the way they manage technology and anew framework for technical career planning and training.
  6. 6. Non-operated joint venturesWe initiated a review into our approach to the management of ourrelationships with significant non-operated joint venture operators andpartners. This work includes safety and operational risk, as well as briberyand corruption risk.What’s next? We intend to enhance the consistency of focus on BP’sexposure to these risk areas in our processes for participating in new andexisting non-operated joint ventures.AttestationThe information on this page forms part of the information reviewed andreported on by Ernst & Young as part of BPs 2011 sustainability reporting.