Managing Project Risks
in the Oil & Gas Industry

Day One: Fundamental Project Risk Management Concepts

Competency Description: We aim to provide an understanding of the impact that you can have to ensure full understanding of how objectives and requirements are captured and risks identified against them in order for the project to be delivered.

Key behaviours

• Establishing risk against organisation vision and initiatives
• Key leading and collaboration principles in relation to risk
• Determining the risk managing process to be used

Topics to be covered

• 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

Day Two: Roles & Responsibilities and Identifying Risks

Competency Description: As a leader or member of an oil & gas project team, you hold a key operational role in the project delivery.  Understanding key roles and responsibilities are crucial.   We also focus on the various identification methods that can be used to recognise risks and prepare for analysis.

Key behaviours

• Establishing key roles & responsibilities
• Key accountability or responsibility principles
• Developing the risk owner
• Risk Identification methods – recognition and exercises

Topics to be covered

• 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
• Alternative techniques based on team dynamic
  • Sabotage teams
• Categorisation and the use of Risk Breakdown Structure (RBS)

Day Three: Risk Analysis Techniques

Competency Description: As we identify risks via the various identification methods – we need to recognise appropriate ways to analyse using qualitative, semi quantitative and quantitative methods.   We must recognise the risk levels in order to appropriately prepare for responses.

Key behaviours

• Establishing appropriate level of risks via analysis
• Testing of various risk analysis tools
• Developing qualitative and quantitative skills

Topics to be covered

• Alternative Risk Analysis assessment formats & recommended practices in the oil & gas industry
  • Differences between Qualitative, Semi-Quantitative and 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
• An overview of Modelling and Monte Carlo simulations
• Risk Analysis outputs

Day Four: Planning Risk Responses and Implementing Risk Responses

Competency Description: We need to appropriately prepare for risk responses.  Oftentimes, our responses add greater risk or burden of cost than the original risk and we need to recognise where to focus our time, our resources and value to in order to deliver our projects successfully.

Key behaviours

• Establishing prioritisation of risks
• Developing risk action plans around agreed and approved risk response strategies
• Developing a risk monitoring plan

Topics to be covered

• Risk prioritisation
• Risk response strategies
• Action plan formulation / evaluation
• Appropriate approval / endorsement of action plans
• Implementing and monitoring
• Earned value management
• Reserve Analysis
• Implementing response plans – good practices)

Day Five: Reporting and Communicating Risk, Extracting Lessons & Lessons Learned

Competency Description: As we execute our project we need to ensure that we are continuously monitoring and prepared for deviation from plans, appropriateness of responses and the status against any identified or new risks.

Key behaviours

• Establishing appropriate risk reporting methods
• Understanding why and when we escalate risks
• Developing risk management skills through experience and application of methods.

Topics to be covered

• Risk reporting
• Escalating risks
• Embedding the risk management 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 an organization