October 2010

1. October 2010

2. Definitions This slide establishes definitions of key concepts pertaining to Risk Perception, Hazard Recognition and Risk Tolerance. The definitions for “hazard” and “risk” come from the current (2008) ExxonMobil Upstream Risk Assessment and Management (RAM) Guide. These definitions are consistent with those used by other ExxonMobil business streams. “Perception” is a complex process by which people acquire information for processing by the brain and. It is necessary to have a clear and commonly accepted definition of what the term means. The ultimate goal is to avoid hazards and prevent incidents and injuries. “Hazard Recognition” is a necessary pre-requisite for the perception of risk. This is the process by which people first become aware of the potential for harm. This initial information is routed to the cortex of the brain for processing and interpretation. It is at this juncture that we begin to understand the importance of the information. “Risk perception” in turn influences decision making related to avoiding hazards. The perception of risk allows people to make decisions regarding how much risk they are willing to tolerate based a variety of factors (“Risk Tolerance”). “Risk Tolerance” is thought to be a key component in determining which actions persons are willing to take in their daily lives. Examples of such actions may include how people drive, do their jobs, etc. High risk tolerance can lead people to choose courses of action that unnecessarily exposes them to hazards and an increased likelihood of accidents.This slide establishes definitions of key concepts pertaining to Risk Perception, Hazard Recognition and Risk Tolerance. The definitions for “hazard” and “risk” come from the current (2008) ExxonMobil Upstream Risk Assessment and Management (RAM) Guide. These definitions are consistent with those used by other ExxonMobil business streams. “Perception” is a complex process by which people acquire information for processing by the brain and. It is necessary to have a clear and commonly accepted definition of what the term means. The ultimate goal is to avoid hazards and prevent incidents and injuries. “Hazard Recognition” is a necessary pre-requisite for the perception of risk. This is the process by which people first become aware of the potential for harm. This initial information is routed to the cortex of the brain for processing and interpretation. It is at this juncture that we begin to understand the importance of the information. “Risk perception” in turn influences decision making related to avoiding hazards. The perception of risk allows people to make decisions regarding how much risk they are willing to tolerate based a variety of factors (“Risk Tolerance”). “Risk Tolerance” is thought to be a key component in determining which actions persons are willing to take in their daily lives. Examples of such actions may include how people drive, do their jobs, etc. High risk tolerance can lead people to choose courses of action that unnecessarily exposes them to hazards and an increased likelihood of accidents.

3. Risk Tolerance Model DISCUSS: The model is divided into three stages. Hazard Identification, Risk Perception, and Risk Tolerance. Hazard Recognition is the stage were the hazard is first identified by the sensory receptors and the information is transmitted to the brain for interpretation. Risk Perception is the stage where information pertaining to the hazard has been received and interpreted by the brain. At this stage, the significance of the hazardous situation becomes understood and a determination regarding the probability of harm (risk assessment) is completed. Risk Tolerance is the stage where one makes a decision about the perceived level of risk and forms a response plan based on his or her own knowledge, experiences and internal beliefs. The steps in this model must be performed sequentially. If there is interruption to the process, or if there is incomplete information upon which to form a plan the outcome will be less than desired. The model was developed to better understand the decision making process in order to influence safe decisions making practices in hazardous situations. The significance of the model lies in identifying tools that will enhance one’s ability to properly identify the hazards, understand the risks, and be able to project the future outcome based on the decision he or she makes before actually taking any action. DISCUSS: The model is divided into three stages. Hazard Identification, Risk Perception, and Risk Tolerance. Hazard Recognition is the stage were the hazard is first identified by the sensory receptors and the information is transmitted to the brain for interpretation. Risk Perception is the stage where information pertaining to the hazard has been received and interpreted by the brain. At this stage, the significance of the hazardous situation becomes understood and a determination regarding the probability of harm (risk assessment) is completed. Risk Tolerance is the stage where one makes a decision about the perceived level of risk and forms a response plan based on his or her own knowledge, experiences and internal beliefs. The steps in this model must be performed sequentially. If there is interruption to the process, or if there is incomplete information upon which to form a plan the outcome will be less than desired. The model was developed to better understand the decision making process in order to influence safe decisions making practices in hazardous situations. The significance of the model lies in identifying tools that will enhance one’s ability to properly identify the hazards, understand the risks, and be able to project the future outcome based on the decision he or she makes before actually taking any action.

4. Everyone perceives and tolerates risk differently Risk perception is identification Do you see it Do you understand the risk? Risk tolerance is acceptance Do you tolerate and accept it? EMPHASIZE: The ability to recognize hazards involves three components: You must be capable of identifying or recognizing the hazard. You must be capable of comprehending the risk if exposed to the hazard. You must determine whether the level of risk is acceptable. EMPHASIZE: The ability to recognize hazards involves three components: You must be capable of identifying or recognizing the hazard. You must be capable of comprehending the risk if exposed to the hazard. You must determine whether the level of risk is acceptable.

5. Factors that influence Risk Tolerance… This list identifies factors that, according to the literature, most significantly impact Risk Tolerance. Once again, it is important that we adopt a shared definition for describing factors that influence Hazard Recognition, Risk Perception and Risk Tolerance. Having common models and definitions of key terms helps to enhance understanding and expedite the pace of improvement . As shown in prior slides, Hazard Recognition, Risk Perception and Risk Tolerance can be influenced through existing tools - both already employed within ExxonMobil, or described in the literature - to reduce the number of unsafe decisions and unsafe actions. Understanding how the factors stated on this slide interact with the various models described in this paper and how they impact Risk Tolerance is an important element for improvement planning. This list identifies factors that, according to the literature, most significantly impact Risk Tolerance. Once again, it is important that we adopt a shared definition for describing factors that influence Hazard Recognition, Risk Perception and Risk Tolerance. Having common models and definitions of key terms helps to enhance understanding and expedite the pace of improvement . As shown in prior slides, Hazard Recognition, Risk Perception and Risk Tolerance can be influenced through existing tools - both already employed within ExxonMobil, or described in the literature - to reduce the number of unsafe decisions and unsafe actions. Understanding how the factors stated on this slide interact with the various models described in this paper and how they impact Risk Tolerance is an important element for improvement planning.

6. What factors influence our decision to take chances? How can we influence others to make safe choices? How can improved hazard recognition capability result in better safety performance? EMPHASIZE: EMPHASIZE:

7. The following tools have been identified to be the most effective in reducing risk tolerance INTERVENTION COACHING LOSS PREVENTION SYSTEM (LPS) Safe Performance Self-Assessment (SPSA) Loss Prevention Observation (LPO) Job Safety Analysis (JSA) EMPHASIZE: The intervention, coaching and LPS tools were determined to be the most influential in addressing the topics of hazard recognition, risk perception and risk tolerance within ExxonMobil. The working groups from the workshop decided that these tools, along with training, and communication methods would make the most immediate impact in changing unsafe and risk tolerant behavior. The risk tolerance working group has deemed that the tools listed above and which are already broadly employed within the corporation, address issues of hazard recognition, risk perception and risk tolerance. However, continued focus on execution and enhancement of existing methods of training and communication is needed. Further, continued enhancement of other tools listed on the previous slides and development of new approaches incorporating the information reviewed during the workshop and presented in this summary, including in the back-up section, is recommended. EMPHASIZE: This slide depicts a list of common practices and tools currently used within ExxonMobil. The list is based on input from various SSH&E leadership teams and upon direct input from meeting participants. The list is an effort to assemble a list of those tools which may be effective and to (A) determine whether any of the tools seem to be most effective and (B) see whether any can be enhanced based on information arising from the workshop.EMPHASIZE: The intervention, coaching and LPS tools were determined to be the most influential in addressing the topics of hazard recognition, risk perception and risk tolerance within ExxonMobil. The working groups from the workshop decided that these tools, along with training, and communication methods would make the most immediate impact in changing unsafe and risk tolerant behavior. The risk tolerance working group has deemed that the tools listed above and which are already broadly employed within the corporation, address issues of hazard recognition, risk perception and risk tolerance. However, continued focus on execution and enhancement of existing methods of training and communication is needed. Further, continued enhancement of other tools listed on the previous slides and development of new approaches incorporating the information reviewed during the workshop and presented in this summary, including in the back-up section, is recommended. EMPHASIZE: This slide depicts a list of common practices and tools currently used within ExxonMobil. The list is based on input from various SSH&E leadership teams and upon direct input from meeting participants. The list is an effort to assemble a list of those tools which may be effective and to (A) determine whether any of the tools seem to be most effective and (B) see whether any can be enhanced based on information arising from the workshop.

8. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior.

9. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior.

10. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior. EMPHASIZE: Briefly review the content of this slide relative to the three risk tolerance reduction tools, the difficulties associated with implementation and recommendations for addressing and removing at-risk behavior. Where do you see these tools applied in your role as a Safety Leader? What are the difficulties associated with implementing or applying these tools? What are your barriers? How can these barriers be overcome to permanently remove at-risk behavior? ASK: Ask participants to identify other barriers to implementing these behavior change tools. Ask participants to identify other corrective actions for successfully addressing at-risk behavior.

11. Back Up's

12. Visual Perception and Hazard Recognition… Of the virtually unlimited information available in the world around us, the equivalent of 10 billion bits per second arrives on the retina at the back of the eye. Because the optic nerve attached to the retina has only a million output connections, just six million bits per second can leave the retina, and only 10,000 bits per second make it to the visual cortex. After further processing, visual information feeds into the brain regions responsible for forming our conscious perception. Surprisingly, the amount of information constituting that conscious perception is less than 100 bits per second. This finding suggests that the brain probably makes constant predictions about the outside environment in anticipation of the “paltry” sensory inputs reaching it. (M.E. Raichle, Scientific American, March 2010). The slide shows that the probability of recognizing, comprehending and responding to every single hazard is remote. If the hazard is not recognized, then usually the risk is never perceived. If the risk is not perceived, then the worker will not formulate actions to intervene. Of the virtually unlimited information available in the world around us, the equivalent of 10 billion bits per second arrives on the retina at the back of the eye. Because the optic nerve attached to the retina has only a million output connections, just six million bits per second can leave the retina, and only 10,000 bits per second make it to the visual cortex. After further processing, visual information feeds into the brain regions responsible for forming our conscious perception. Surprisingly, the amount of information constituting that conscious perception is less than 100 bits per second. This finding suggests that the brain probably makes constant predictions about the outside environment in anticipation of the “paltry” sensory inputs reaching it. (M.E. Raichle, Scientific American, March 2010). The slide shows that the probability of recognizing, comprehending and responding to every single hazard is remote. If the hazard is not recognized, then usually the risk is never perceived. If the risk is not perceived, then the worker will not formulate actions to intervene.

13. Risk Tolerance Model The model is divided into three stages. Hazard Identification, Risk Perception, and Risk Tolerance. Hazard Recognition is the stage were the hazard is first identified by the sensory receptors and the information is transmitted to the brain for interpretation. Risk Perception is the stage where information pertaining to the hazard has been received and interpreted by the brain. At this stage, the significance of the hazardous situation becomes understood and a determination regarding the probability of harm (risk assessment) is completed. Risk Tolerance is the stage where one makes a decision about the perceived level of risk and forms a response plan based on his or her own knowledge, experiences and internal beliefs. The steps in this model are performed sequentially. If there is interruption to the process, or if there is incomplete information upon which to form a plan the outcome will be less than desired. The model was developed to better explain the decision making process used to influence decision making practices in hazardous situations. The significance of the model lies in identifying tools that will enhance one’s ability to properly identify the hazards, understand the risks, and be able to project the future outcome based on the decision he or she makes before actually taking any action. The model is divided into three stages. Hazard Identification, Risk Perception, and Risk Tolerance. Hazard Recognition is the stage were the hazard is first identified by the sensory receptors and the information is transmitted to the brain for interpretation. Risk Perception is the stage where information pertaining to the hazard has been received and interpreted by the brain. At this stage, the significance of the hazardous situation becomes understood and a determination regarding the probability of harm (risk assessment) is completed. Risk Tolerance is the stage where one makes a decision about the perceived level of risk and forms a response plan based on his or her own knowledge, experiences and internal beliefs. The steps in this model are performed sequentially. If there is interruption to the process, or if there is incomplete information upon which to form a plan the outcome will be less than desired. The model was developed to better explain the decision making process used to influence decision making practices in hazardous situations. The significance of the model lies in identifying tools that will enhance one’s ability to properly identify the hazards, understand the risks, and be able to project the future outcome based on the decision he or she makes before actually taking any action.