This document outlines a visit by PELITA, a Malaysian state investment corporation, to Tanjung Langsat Port (TLP) to share experiences in risk management, safety, business development, and other areas. The agenda includes presentations and discussions on TLP's enterprise risk management framework, business strategies, governance structure, and key performance indicators. It also details TLP's risk management process based on ISO 31000 standards, including risk identification, analysis, evaluation, treatment, and monitoring. Site visits were conducted to TLP's liquid jetty, dry cargo wharf and port area.

1. RISK
MANAGEMENT &
COMPLIANCE
S A F E |
E F F I C I E N T |
R E L I A B L E |
_________________________________________________________
PELITA’s Visit
Sharing Experience with
TLP’s Risk Management & Compliance, SHE,
Business Development & Marine Departments
18 June 2013

2. Page 2
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E F F I C I E N T |
R E L I A B L E |
PELITA’s Visit Programme
_________________________________________________________
 Safety Briefing by En. Muzafar Abbas,
Senior Executive SHE
 Presentation by TLP’s Risk Management &
Compliance
 Discussion and Q&A
 Site Visits: Liquid Jetty, Dry Cargo Wharf &
Port Area
 Lunch
10:00 AM – 10:15 AM
10:15 AM – 11:00 AM
11:00 AM – 11:15 AM
11:15 AM – 12:00 PM
1
2
3
4
5
12:00 PM – 14:00 PM

3. Page 3
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E F F I C I E N T |
R E L I A B L E |
Agenda
_________________________________________________________
 Overview on TLP:
Transforming Tg Langsat Into
An Oil & Gas Hub In The Region
 TLP’s Enterprise Risk Management (“ERM”)
 Business Strategies
 KPI
 Governance Organisational Model
 Supervising Structure
 Risk by Definition
 Risk Event, Cause & Effect
 Risk Analysis
 Risk Evaluation & Treatment
 Lesson Learnt & PAGEMA-TLP Drill 3-Minute Video
1
2
3

4. Page 4
S A F E |
E F F I C I E N T |
R E L I A B L E |
ISO 31000: Risk Management Process
_________________________________________________________
Establishing the context
Risk Identification
Risk Analysis
Risk evaluation
Risk treatment
Communication
&
Consultation
Monitoring &
Review
Risk Assessment

5. Page 5
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E F F I C I E N T |
R E L I A B L E |
Establishing Context:
JCORP–TLPBusiness StrategiesAlignment
_________________________________________________________
• A state investment corporation contributing to
state and national economic growth through an
efficient and effective business entity while
upholding the community interest.
• Upholding position as a business entity that
spearheads and controls market, competitive,
profit‐motivated and recognized.
• A catalyst to sustainable business growth which
will further create success in fulfilling its
obligation as a state investment corporation.
• Contributing and adding values to the well‐being
of the community through business success as
well as Corporate Social Responsibility
undertakings.
• To be the premier specialised
port in the region
• To serve as the main gateway
for Tanjung Langsat Industrial
Complex
• TLP as a Catalyst of IRDA’s Oil
& Gas Industry gowth

6. Page 6
S A F E |
E F F I C I E N T |
R E L I A B L E |
Establishing Context:
TLP’s Key Performance Indicators
_________________________________________________________
NO
KPIs 2013’s KPIs
THRUST
2012 2013 TARGET REMARKS
1. EBITDA: RM10 million EBITDA: RM30 million
Port Activities
&
Land Sales
RM13.1
million in
2012.
FINANCIAL
(Sustainability /
Opportunity Loss)
2.
Handling of Liquid
Cargoes:
4 million m3 /year
Handling of Liquid
Cargoes :
10 million m³/year
Port Facilities
&
Vessel
Turnaround
7.87 million
m³ in 2012.
Increase of
27%.
OPERATION
(Efficiency: Berth
Utilisation Rate)
3.
Handling of Dry
Cargoes:
60,000 MT/year
Handling of Dry
Cargoes:
300,000 MT/year
Throughput
&
Outsourcing
240,000 MT
in 2012.
Increase of
25%.
OPERATION
(Efficiency: Berth
Utilisation Rate)
4.
Re-commissioning of
TLPOT
Re-commissioning/
disposal of Tanjung
Langsat Port Oil
Terminal (TLPOT)
July 2013 FINANCIAL/OPERATION/
RESOURCES DAMAGE
5.
To obtain Federal Govt
Grant for additional 2
jetties
Development of
Marine Supply Base
July 2013
Signing of JV
agreement.
STAKEHOLDERS’
RELATIONSHIPS

7. Page 7
S A F E |
E F F I C I E N T |
R E L I A B L E |
ISO 31000: Risk Management Process
_________________________________________________________
Establishing the context
Risk Identification
Risk Analysis
Risk evaluation
Risk treatment
Communication
&
Consultation
Monitoring &
Review
Risk Assessment

8. Page 8
S A F E |
E F F I C I E N T |
R E L I A B L E |
Communication & Consult:
Governance Organisational Model
_________________________________________________________
Executive Director
Risk Management & Compliance
(execution of Legal Risk Review Supports, Risk Management Process and Oversight,
Monitoring & Reporting)
AssetPeople Environment
Safety, Health &
Environment
(SHE) Risk
Ownership
Operations /
Marine Risk
Ownership
Commercial /
Financial Risk
Ownership Risk Support
Internal and Regulatory Reporting
(provide mandate and guidance for Risk Management & Governance)
Chief Financial Officer
Reputation
Strategic/
Reputational
Risk Ownership
Chief Operating Officer
JCORP
Stakeholder Engagement
Security Risk
Ownership
Technical & Project
Development Risk
Ownership
Board of Directors
Tanjung Langsat Port Sdn Bhd

9. Page 9
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E F F I C I E N T |
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Monitoring & Review:
Supervising Structure
_________________________________________________________
Risk Management
&
Compliance
Legal Risk Review
& Supports
Risk
Management
Process
Oversight
Monitoring &
Reporting
Licensing / Certification
Contract / Commitment /
Agreement / SLA
Policy / SOP / Operating
Procedure / Standard of Best
Practice
Legal Coordination
Risk Assessment
Risk Registers
Project Risk Assessment &
Register
JCIA (KRIS) Coordination
Verification Audit
Incident / Dashboard
Reporting
Programme Management
Stakeholders Compliance
Facilitation
Post
Contract
YieldEfficiency
Pre
Contract
Tanjung Langsat Port Sdn Bhd

10. Page 10
S A F E |
E F F I C I E N T |
R E L I A B L E |
ISO 31000: Risk Management Process
_________________________________________________________
Establishing the context
Risk Identification
Risk Analysis
Risk Evaluation
Risk Treatment
Communication
&
Consultation
Monitoring &
Review
Risk Assessment

11. Page 11
S A F E |
E F F I C I E N T |
R E L I A B L E |
_________________________________________________________
Term Objectives/Definitions
Risk
 Risk is best expressed in terms of three components: Event, Cause and Effect. This may be illustrated by a simple
example, a worm virus as follows:‐
Risk Event – a virus enters your computer;
Cause – the external cause is a hacker and the internal cause is a lack of current virus protection
software;
Effect – computer software fails, data is lost, with potential financial and non‐financial consequences.
 Risk is often characterised by two components namely, Likelihood (Frequency) and Impact (Consequences);
RISK = LIKELIHOOD X CONSEQUENCE
= Frequency Impact
with which an event is X of the event’s outcome to
anticipated occur
 In summary, risk is defined as;
The potential for loss, either directly through the loss of People, Environment, Asset and Reputation
and/or
Indirectly through the imposition of uncontrollable constraints on an organisation’s ability to meet its
business objectives;
Additionally, Risk is also the probability of harmful consequences, or expected losses (death, injuries,
property, livelihoods, economic activity disrupted or environment damaged) resulting from interactions
between natural or human‐induced hazards and vulnerable conditions;
RiskAssessment:
Risk Identification – Risk by Definition

12. Page 12
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E F F I C I E N T |
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RiskAssessment:
Risk Identification – Risk Event, Cause & Effect
_________________________________________________________
CAUSE
Tripped
(Fell)
RISK EVENT
Men
Overboard
EFFECT
Fatality
(Drowning)

13. Page 13
S A F E |
E F F I C I E N T |
R E L I A B L E |
ISO 31000: Risk Management Process
_________________________________________________________
Establishing the context
Risk Identification
Risk Analysis
Risk evaluation
Risk treatment
Communication
&
Consultation
Monitoring &
Review
Risk Assessment

14. Page 14
S A F E |
E F F I C I E N T |
R E L I A B L E |
_________________________________________________________
Term Objectives/Definitions
Risk
 Risk is best expressed in terms of three components: Event, Cause and Effect. This may be illustrated by a simple
example, a worm virus as follows:‐
Risk Event – a virus enters your computer;
Cause – the external cause is a hacker and the internal cause is a lack of current virus protection
software;
Effect – computer software fails, data is lost, with potential financial and non‐financial consequences.
 Risk is often characterised by two components namely, Likelihood (Frequency) and Impact (Consequences);
RISK = LIKELIHOOD X CONSEQUENCE
= Frequency Impact
with which an event is X of the event’s outcome to
anticipated occur
 In summary, risk is defined as;
The potential for loss, either directly through the loss of People, Environment, Asset and Reputation
and/or
Indirectly through the imposition of uncontrollable constraints on an organisation’s ability to meet its
business objectives;
Additionally, Risk is also the probability of harmful consequences, or expected losses (death, injuries,
property, livelihoods, economic activity disrupted or environment damaged) resulting from interactions
between natural or human‐induced hazards and vulnerable conditions;
RiskAssessment:
RiskAnalysis – Risk by Definition

15. Page 15
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskAssessment:
RiskAnalysis – Risk Likelihood Rating Scale
_________________________________________________________
RATING DESCRIPTOR RATING DESCRIPTION
(1)
Almost Never / Rare
Probability – 10% or less probability of Risk Event happening; or
Risk Event happens Once (1) in 20 years; or
Risk Event might happen only in exceptional circumstances and has never happened in the industry
(2)
Unlikely
Probability – between 11% and 30% probability of Risk Event happening; or
Risk Event happens Once (1) in 10 years; or
Risk Event could happen in the ENTITY or has happened in the industry
(3)
Moderate / Possible
Probability – between 31% and 60% probability of Risk Event happening; or
Risk Event happens Once (1) in a year; or
Risk Event might occur at some time and has happened in ENTITY
(4)
Likely
Probability – between 61% and 80% probability of Risk Event happening; or
Risk Event happens 1 to 5 times a year; or
Probably happen in many circumstances and has happened several times in ENTITY
(5)
Almost Certain / Common
Probability – 81% - 100% probability of Risk Event happening; or
Risk Event happens more than 6 events a year; or
Risk Event expected to happen in most circumstances and has happened several times in ENTITY
Notes Description
A
 Matrix above offer guidelines on factors to be considered. An element of judgment based on relevant
knowledge and experience is critical in arriving at the final rating.
B
 Factors that need to be considered are:‐
Anticipated frequency / history of previous Risk Events against industry norm;
Effectiveness of existing preventive controls in place – policy, procedures, system & skills;
Working environment – staff commitment, morale & attitude

16. Page 16
S A F E |
E F F I C I E N T |
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RiskAssessment:
RiskAnalysis–RiskConsequences/ImpactRatingScale
_________________________________________________________
CONSEQUENCES /
IMPACT
FACTOR
(1)
INSIGNIFICANT
(2)
MINOR
(3)
MODERATE
(4)
MAJOR
(5)
CATASTROPHIC / EXTREME
People
(HEALTH & SAFETY)
Possible very minor injuries with
minimal treatment (e.g. bruise); OR
Injuries but requiring first aid
treatment; OR
Near-misses;
Single slight injuries with first
aid/medical treatment; OR
No effects to work performance; OR
No disability
Multiple minor or single major injury
(requiring more than first aid); OR
Extensive medical treatment required;
OR
Affecting work performance; OR
Limited health effects that are curable;
OR
Loss-Time-Injury (LTI);
Severe injury and/or multiple major injuries
(requiring hospitalisation) and/or single
fatality; OR
Permanent partial disability; OR
Extensive injuries that effect productivity; OR
Long-term effects on work performance; OR
Incurable health damage without fatality
Multiple accidental fatalities; OR
Permanent occupational illnesses
Environment
No or negligible environment impact;
OR
Tier 1 may be declared but criteria not
necessarily met*
Small spill or contamination with no
significant impact; OR
Tier 1 to Tier 2 breaches (small
operational spill or contamination)*;
OR
Single complaint or violation of
statutory or prescribed limits
Some environmental damage and spill
can be limited within the immediate
incident area; OR
Limited loss of discharge of known
toxicity; OR
Tier 2 spill criteria breached, capable
of being limited to immediate area
within harbour or port zone; OR
Affecting/Encroaching neighbourhood
area
Major environmental impacts with releases of
hazardous or polluting substances with the
potential of spreading outside port boundary;
OR
Chemical spillage or gas release; OR
Low Tier 3 criteria breached, with pollution
outside harbour or port zone expected*; OR
Potential loss of environmental amenity; OR
Extensive measures required to restore
contaminated environment; OR
Extended violation of statutory or prescribed
limits
Extreme environmental impact with
major releases of hazardous or
polluting substances with significant
threat to environmental amenity; OR
Persistent severe environmental
damage; OR
Nuisance over a large area; OR
Would inhibit the business operation
from functioning for medium or long
term period; OR
Major economic loss for the company
in terms of commercial or recreational
use or nature conservancy
Asset
RESOURCES
DAMAGE
Repair on asset at no cost; OR
Equipment can be back online without
disruptions to operations; OR
Insignificant damage to
vessel/wharf/jetty and no missed
voyages;
Minor repair on the asset with minor
cost; OR
Individual equipment needs to be
brought down; OR
Brief disruptions to singular/multiple
process/system unit; OR
Minor damage to vessel/wharf/jetty
and operational disruption and no
missed voyages;
Damage on asset has to be repaired
with high cost; OR
Collateral damage incurred by
surrounding equipment; OR
Shutdown of single process/system
unit; OR
Damage to vessel/wharf/jetty with
longer operational disruption and
financial loss;
Major repair required on the asset with very
high cost; OR
Extensive collateral damage incurred by
surrounding equipment; OR
Shutdown of all process/ system units in
facility; OR
Major damage to vessel/wharf/jetty with major
operational disruption and missed voyages;
Huge repair with huge cost required;
OR
Collateral damage extending beyond
facility boundaries; OR
Loss of vessel, total damage to
wharf/jetty with potential port
closure/navigational disruption over an
extended period;
FINANCIAL/
OPPORTUNITY
LOSS
Low financial loss – Less than
RM50,000; OR
2% of company sales; OR
Whichever is the lower amount
Medium financial loss – between
RM50,000 and RM250,000; OR
>2% - 5% of company sales; OR
Whichever is the lower amount
High financial loss – between
RM250,001 and RM1mil; OR
>5% - 15% of company sales; OR
Whichever is the lower amount
Major financial loss – between RM1mil to
RM2.5mil; OR
>15% - 25% of company sales; OR
Whichever is the lower amount
Huge financial loss – More than
RM2.5mil; OR
More than 25% of company sales; OR
Whichever is the lower amount
OPERATION
It would have little or no impact on
business operation; OR
No disruptions to operations
It would have minor impact on
business operation and can be
managed; OR
Brief disruptions to operations
Will affect the business operation.
Significant management time and cost
is required to manage or avoid it; OR
Partial shutdown (restart possible)
The business operation seriously affected for
short or medium term period; OR
Partial loss of operations (2weeks shutdown)
Would inhibit the business operation
from functioning for medium or long
term period; OR
Substantial or total loss of operation
Reputation SECURITY
Detrimental to customer/port
community confidence
Detrimental to assets, infrastructure,
utility and cargo security; AND/OR
Likely to cause limited disruption to an
individual asset, infrastructure or
organisation
Detrimental to the environment and/or
economic function of the port;
AND/OR
Likely to cause sustained port-wide &
facility disruption; AND/OR
Significant economic loss; AND/OR
Damage to state AND national
prestige
Detrimental to public safety and/or national
prestige; AND/OR
Serious injuries; AND/OR
Likely to cause significant environmental
damage and/or localised public health and
safety
Detrimental to security and safety;
AND/OR
Likely to cause loss of life; AND/OR
Create widespread danger to public
health and safety

17. Page 17
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskAssessment:
RiskAnalysis – Risk Level Rating Scale
_________________________________________________________
Level Descriptor Action
5 Severe
Risk Level resulted in management effort that is unable to prevent collapse
(e.g. BOARD)
16 – 25
Must be managed by top management with detail action plan
4 Major
Risk Level require extraordinary management effort
(e.g. CEO)
5 – 15
Senior management input or attention is required
3 Significant
Risk Level require additional management effort
(e.g. COO, CFO)
4 – 12
The risk must be managed and monitored by management
2 Minor
Risk Level can be absorbed with some management effort
(e.g. Manager, Senior Manager)
3 – 8
Managed by routine procedures or the risk may be worth accepting with
monitoring
1 Trivial
Risk Level can be absorbed at operating level
(e.g. Supervisor)
1 – 4
Unlikely to need specific application of resources or may accept risk

18. Page 18
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskAssessment:
RiskAnalysis – Risk Level Rating Matrix
_________________________________________________________
Consequences
→
Likelihood
↓
Insignificant
1
Minor
2
Moderate
3
Major
4
Catastrophic /
Extreme
5
Almost Certain
/ Common
5
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
5
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
10
Major
Risk Level require
extraordinary management
effort (e.g. CEO)
15
Severe
Risk Level resulted in
management effort that is
unable to prevent collapse
(e.g. BOARD)
20
Severe
Risk Level resulted in
management effort that is
unable to prevent collapse
(e.g. BOARD)
25
Likely
4
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
4
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
8
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
12
Severe
Risk Level resulted in
management effort that is
unable to prevent collapse
(e.g. BOARD)
16
Severe
Risk Level resulted in
management effort that is
unable to prevent collapse
(e.g. BOARD)
20
Moderate
/ Possible
3
Trivial
Risk Level can be absorbed at
operating level (e.g.
Supervisor)
3
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
6
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
9
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
12
Major
Risk Level require
extraordinary management
effort (e.g. CEO)
15
Unlikely
2
Trivial
Risk Level can be absorbed at
operating level (e.g.
Supervisor)
2
Trivial
Risk Level can be absorbed at
operating level (e.g.
Supervisor)
4
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
6
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
8
Major
Risk Level require
extraordinary management
effort (e.g. CEO)
10
Almost Never
/ Rare
1
Trivial
Risk Level can be absorbed at
operating level (e.g.
Supervisor)
1
Trivial
Risk Level can be absorbed at
operating level (e.g.
Supervisor)
2
Minor
Risk Level can be absorbed
with some management effort
(e.g. Manager, Senior
Manager)
3
Significant
Risk Level require additional
management effort (e.g. COO,
CFO)
4
Major
Risk Level require
extraordinary management
effort (e.g. CEO)
5

19. Page 19
S A F E |
E F F I C I E N T |
R E L I A B L E |
ISO 31000: Risk Management Process
_________________________________________________________
Establishing the context
Risk Identification
Risk Analysis
Risk Evaluation
Risk Treatment
Communication
&
Consultation
Monitoring &
Review
Risk Assessment

20. Page 20
S A F E |
E F F I C I E N T |
R E L I A B L E |
_________________________________________________________
Term Objectives/Definitions
Risk
 Risk is best expressed in terms of three components: Event, Cause and Effect. This may be illustrated by a simple
example, a worm virus as follows:‐
Risk Event – a virus enters your computer;
Cause – the external cause is a hacker and the internal cause is a lack of current virus protection
software;
Effect – computer software fails, data is lost, with potential financial and non‐financial consequences.
 Risk is often characterised by two components namely, Likelihood (Frequency) and Impact (Consequences);
RISK = LIKELIHOOD X CONSEQUENCE
= Frequency Impact
with which an event is X of the event’s outcome to
anticipated occur
 In summary, risk is defined as;
The potential for loss, either directly through the loss of People, Environment, Asset and Reputation
and/or
Indirectly through the imposition of uncontrollable constraints on an organisation’s ability to meet its
business objectives;
Additionally, Risk is also the probability of harmful consequences, or expected losses (death, injuries,
property, livelihoods, economic activity disrupted or environment damaged) resulting from interactions
between natural or human‐induced hazards and vulnerable conditions;
RiskAssessment:
Risk Evaluation &Treatment – Risk by Definition

21. Page 21
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskAssessment:
Risk Evaluation – Absolute Risk Level Rating Matrix
_________________________________________________________

22. Page 22
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskAssessment:
Risk Evaluation & (Treatment) – Current Risk Level Rating
Matrix_________________________________________________________

23. Page 23
S A F E |
E F F I C I E N T |
R E L I A B L E |
RiskTreatment:
Residual Risk Level Rating Matrix
_________________________________________________________

24. Page 24
S A F E |
E F F I C I E N T |
R E L I A B L E |
Lesson Learnt & PAGEMA-TLPDrill 2012
_________________________________________________________
Lesson Learnt
Lesson Learnt
Men
Overboard
PAGEMA‐TLP
Drill 2012
Corporate
Video

25. RISK
MANAGEMENT &
COMPLIANCE
S A F E |
E F F I C I E N T |
R E L I A B L E |
_________________________________________________________
End of Programme
PELITA’s VISIT
Enterprise Risk Management (“ERM”)