Mark Bly Executive Vice President, Safety and Operational Risk. Managing safety and operational risk in BP
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1 Mark Bly Executive Vice President, Safety and Operational Risk Managing safety and operational risk in BP
2 A safer, stronger BP BP s approach to safety and operational risk management integrates our Operating Management System (OMS) and our values. It is based on three principles that guide our efforts. They are to strive for: Deep capability and a safe operating culture across all levels of BP Embedding OMS as the way BP operates Self and independent assurance that confirms conduct of operating
3 Systematic operating through OMS OMS is our method for further reducing risk and systematically improving operating quality. Our operations conduct annual assessments of potential risks, controls and robustness of OMS conformance This drives prioritization of risk management actions and sets OMS improvement goals It is the first step in the annual planning process and takes first call on resources Risk reduction actions are rigorously tracked and performance managed
4 Leadership of safe, compliant, reliable operations Operating leaders must lead through our values and bring OMS to life. This is being reinforced by: Tone from the top: Safety and operational risk at the heart of the company Company-wide roll-out and engagement on new values and behaviours New individual performance management tool explicitly emphasizes safety, risk management and values Specific actions for risk reduction and OMS conformance in operating leaders plans
5 S&OR capability and competence Targeted capability programmes are reinforcing values and building leadership capacity to bring OMS to life and achieve consistently safe, compliant, reliable operations.
6 Progress on safety and operational risk management A standardized risk process has significantly enhanced risk understanding and risk management. Consistent, systematic approach for describing potential risks and protective measures Annual process, down to facility level, provides granularity and reinforces specific accountability for management Risks are reviewed and preventative measures endorsed by appropriate level of management (executive team for some risks), action closure is monitored Risk reductions are achieved by elimination, engineering improvements, and procedural improvement
7 Progress on learning from incidents Enhanced reporting, investigation and learning practices are improving our ability to learn from incidents. Investigations of higher severity incidents are reviewed by line management and independently tested for quality by S&OR Central investigation team is training and assessing investigators as well as leading select investigations High value learnings are being shared in a systematic way and include preventive actions for the operating line
8 Strengthening checks and balances at multiple levels A strong three tier approach to safety and operational risk assurance is in place and improving. Operating organizations are expected to perform self-assessment, self audit to confirm OMS conformance Deployed S&OR works side by side with operating organization to provide on-going assurance checks S&OR Audit Provide a periodic and independent view of selected entities conformance with BP and selected external requirements. S&OR Deployed Provide a risk-based, independent view of BP Entity safety and operational risk performance. Audit Assurance and input Robust, independent S&OR auditing provides periodic checks on system health and compliance Further layers provided by internal audit, GORC and SEEAC Line Continuous effort to verify conformance with requirements to drive safe, compliant and reliable operations. Self Verification
9 Results Source: API RP-754 9
10 Summary BP continues its rigour to drive safety and operational risk to the heart of the company. Tone from the top, aligned values and individual performance management are setting clear expectations of leaders Consistent risk assessment and management is driving focus and risk reduction Multiple layers of assurance are in place and strengthening Still more to do
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