Understanding Risk Management: Prioritization and Action

1. Risk Management – “A picture of understanding and prioritization” Mads Hembre Leading Advisor Risk Management in Projects

4. Summary Slide • Step by step… • Continuous improvement • Homepage Network • Presentations, tools, request, examples… • Risk module users • The Risk Management process • Users from different BU’s • From web to R3 • Risk module

5. Summary Slide (cont.) • Risk actions and quality control activities • Risk based monitoring • Functional Description - QRM • Stakeholder and risk management • Cost assessment • Cost impact • Ambition to Action - risks • Aggregation of Risk Management • Network and seminars with participation outside PRC • Participating in external boards, networks, seminars

6. Step by step… 2007 2008 2009 2010 2011 2012 2015 “Customers” PRO • UPN, TNE, INT, NG, GBS • Global Governing documents WR2365 WR2404 GLxx “Shall” WR2365 Aggregation One document Revision of WR2404 Risk strategy RM in FR05 GL DGSP GL Stakeholder Mgt

7. Step by step… 2007 2008 2009 2010 2011 2012 Development New Web New Scale Risk Lite Risk based Monitoring ”Reports across” ”aggregation” R3 Action calculation Risk profile Contingency vs Register ”Logical aggregation” Target Cost Available checklists “Total risk picture”

8. Continuous improvement 2007 2008 2009 2010 2011 2012 2015 Aligned – terms/process Project Managers agenda Risk based experience Risk based Monitoring Awareness “Standard” ”More quantitative” • Context • Description • Action strategy Aligned scales Aligned cause categories “Risk Mgt for Mgt” Risk based processes

9. Homepage Network

10. Presentations, tools, request, examples…

11. Risk module users

12. The Risk Management process

13. Users from different BU’s * Some few CFO users added to GBS

14. Risk module Reports Risks list Risk Matrixes Action list Action

15. Risk actions and quality control activities Disciplines Contracts Subprojects Project Risk Control Risk Identification Risk Assessment Risk Action Quality System Audit Contract/discipline Examination Assignment Notify Prepare Execute Report Observations Follow up Close-out

16. Risk based Monitoring Input A Risk Breakdown Structure / WBS Categories / Disciplines Risk Module • Monitoring Module • Quality • HSE

17. Risk based monitoring • Monitoring Activities are one of the tools we have to mitigate threats • Risk actions can be classefied as follow up or monitoring activity.

18. Stakeholder and risk management

19. Cost assessment Reserve 50% ? % Contingency • Cost • Progress • Both Deviation CCE

20. Cost impact

21. V&M X V&M A V&M C B&B Y B&B A B&B A PRO MOD PRO MOD PRO MOD Project A Project A Project A Aggregation Top 10 pr. MPPx ODV Top 10 pr. field1 Business Cluster MPPx Field Projects Oseberg Troll Gullfaks Other V&M X V&M Z Top 10 domene Projects B&B Y PRO MOD Project A

22. Network and seminars with participation outside PRC • Risk network meeting 2008 • Quality and risk network meetings with external participations • 2009 (8/10 score from participants) • 2010 (8/10 score from participants) • Risk day with UPN, training of risk mgt resources UPN • Training of Contractors in UPN (V&M) • Risk Management presentations (SINTEF, Forsvaret, Proactima, UiS, other internal departments, TNE, GBS, INT) • Understanding Statoil Way (internal participations)

23. Participating in external boards, networks, seminars • Prosjekt 2009 • Leading adv risk management : Speech • Energy Project Management 2009 • Leading adv. risk management : Speech • Lifecycle Risk Management For Offshore Renewable • Risk Management: Speech • Kvalitetsdagene 2010: Leading advisor risk management : Speech • Local seminars NFKR: Speeches (Stavanger) • Presentation of Risk Mgt for different students (Stavanger, Trondheim)

24. Supporting universities/academia/corporate trainees, courses MASTER STUDENTS • Several master students have had leading advisors as during the master thesis work • Camilla Knatten, Hanne Eng Sørlid, Valiander Shaila • These activities secure recruitment of young professionals into project control, provides good relations with academia and provide the leading advisor with new ideas. • PROJECT ACADEMY • Basic, Essential, Field Dev. • One day risk course (4 times a year) • Business Development – Risk Course • ½ day risk based monitoring • ½ day risk management GBS • PUS – Praktisk usikkerhetsstyring (Statoil, Telenor, Forsvaret, Vegvesnet, Jernbaneverket, Statsbygg) – research program 2006-2010 • Several master students, 1 doctor Hans Petter Krane • Several workshops, forum days with involved partners (Statoil arrange 1)

25. From web to R3 • Risk Management Module • Monitoring Module • Experience Transfer Module • Link supplier information Risk module Supplier info. EXperience TRAnsfer module Monitoring module

26. P1-25 P50-75 P75-100 P50-100 P1-5 P5-25 Adjustments…

27. PRO PRO ONO PRO ONO Bergen Oseberg Troll Gullfaks Other Project A Project A Project A Project A Project B Project B Project B Project B Project C Project C Project C Project C Aggregation of Risk Management PRO Top 10 Risk Register2 Top 10 pr. cluster2 PRO LED Business Cluster Top 10 pr. unit2 Business Unit Top 10 pr. field1 Field Projects Top 10 pr. project1 Projects

28. 41 MPPx MPPN MPPS MPPB Volve Statfjord Visund Veslefrikk Troll Tordis Oseberg Snorre Sleipner Heidrun Njord Norne Snøhvit Åsgard Kristin Kvitebjørn Grane Brage Glitne Gullfaks Huldra Heimdal Gimle Aker/ Reinertsen RS2010 Keppel Maersk AOP Seawell Deutag/KCA SNOREV Reinertsen AOP tampen Odfjell Aibel Ved aggregering fra ”underliggende” domener vil all relevant identifikasjons informasjon bli aggregert opp til overliggende domener

29. Distribute risks Sub Project level SDT Project A Project B Project C Project D

30. 47 • “the essence of project management is risk management” Thank you Risk Management – A picture of understanding and prioritization Mads Hembre Leading Advisor Risk Management in Projects madsh@statoil.com, tel: +47 51 99 00 00 www.statoil.com