Managing Project Risks in the Oil and Gas Industry

Objectives

• To develop key risk management competencies such as developing an appropriate risk process for an organisation in the oil & gas Industry
• To understand the key roles, responsibilities and activities associated with project risk management
• To understand how best to apply appropriate tools and techniques to optimise risk management for your projects
• To deal with the changing nature of risk through a stage gated project process
• To understand the human side of risk in terms of risk perception
• To understand the crucial challenges and lessons learned associated with oil and gas project risk management

Programme Outline

Fundamental Project Risk Management Concepts

• What is risk?
• What is different about project risk in the Oil and Gas Industry?
• The dual nature of risk: – threats and opportunities
• Business, operational and project risk
• Introducing the risk management process
• Planning risk management

Roles and Responsibilities and Identifying Risks

• Key risk management roles and responsibilities
• Good practices adopted in oil and gas organisations
• Alternative approaches – which is right for your organisation?
• Risk identification
• Oil and Gas Industry specific techniques
• Overview of MAR, LOPA, HAZID HAZOP
• The ‘Bow Tie’ methodology
• Tools and techniques for project risk identification
• Alternative techniques based on team dynamic
• Sabotage teams
• Categorisation and the use of Risk Breakdown Structure (RBS)

Risk Analysis techniques

• Alternative Risk Analysis assessment formats and recommended practices in the oil and gas industry
• Qualitative /
• Semi-Quantitative
• Quantitative
• Assessing Impact
• Organisational / Business impact versus Safety / Environmental impact
• Tools and techniques for risk analysis
• Sensitivity Analysis
• Expected monetary value analysis
• Further factors to consider – the people side of risk
• Perception, past experience and mental outlook
• External factors – regulator activities & the effect of catastrophic incidents in the industry
• Modelling and Monte Carlo simulation
• Risk Analysis outputs

Planning Risk Responses and Implementing Risk Responses

• Risk prioritisation
• Risk response strategies
• Action plan formulation
• Action plan evaluation
• Analytical evaluation process
• Appropriate approval / endorsement of action plans
• Implementing and monitoring
• Variance and trend analysis
• Earned value management
• Implementing response plans – good practices

 Reporting and Communicating Risk, Extracting Lessons & Lessons Learned from the Industry

• Risk reporting
• Escalating risks
• Reserve analysis
• Embedding the process
• How to identify and feedback lessons learned
• Key risk management lessons from the oil and gas industry and megaprojects in particular
• Applying the lessons and how to implement in my organization