Managing Risk From Site To Board, BP Holdings barcelona

Pim Fortuyn
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BP’s risk management process is designed to help ensure that risks are identified, understood and managed so that we can deliver safe and strong operations
We initiated a review of our risk management system in 2011 to identify what might be done to enhance the clarity, simplicity and consistency of our system, and have begun implementing enhancements. Our system is designed to generate consistent reporting of risks and prioritization of risk mitigation plans by our businesses, including for low-probability, potentially high-consequence scenarios.
Our enhanced risk management system focuses on three levels of activity:
Day-to-day risk identification and management occurs in the group operations and functions, with the approach varying according to the types of risk we face. We assess and manage these day-to-day risks with reference to our operating management system (OMS) and agreed action plans.
Periodic collation and review of risks and risk management plans happens at the business and functional level, including major accident risk and other potentially high-consequence risks.
Oversight and governance occurs at board, executive and function levels to help foster effective group-wide oversight, business planning and resource allocation, intervention and knowledge sharing.
Restructuring to reduce our operational risk
We have made significant structural changes to the way we run our business since the tragic accident in the Gulf of Mexico.
The upstream business has been reorganized into three divisions (exploration, developments and production). This creates greater clarity and accountability, as well as bringing specialists together into teams where they can build their capability.
For example, we have changed the way that our wells across the world are run, bringing them all under the management of one global organization. We have adopted a similar management strategy for all our global upstream projects.

In addition, we have introduced an independent safety and operational risk function. It issues company-wide safety and operational risk standards, through our operating management system. It provides an independent view of risk and, it can escalate or intervene as necessary to promote the operating businesses’ application of global standards on safety and operational risk.

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