Introduction:
The scrutiny faced by the oil and gas industry has never been greater. While the industry still accounts for the majority of the world’s energy generation, opponents contest the use of such fossil fuels and such. Climate change and greenhouse gas emissions legislation, along with concern over the future of hydraulic fracturing, pose major problems to the oil and gas industry and with more households and businesses tightening their belts to make every penny count amidst an ongoing recession, oil and gas companies must address many of the same concerns.
Ultimately, the fact remains that without the industry, the lights would go out and our cars would stop running. That said, the industry is under incredible stress and the risk factors affecting it are complex. While many oil and gas companies have seen their own financials improve, the financial stability of partners, customers, vendors and suppliers remain top risk factors. This all means that the need to manage project risks effectively has never been of great importance to the industry as a whole.
This Project Risk Management training course provides a structured approach to managing project related risks that ensure value is protected, and most importantly, minimizes the chances of major events affecting not only the project but the organization to the benefit of all.
Course Objectives:
- Current issues within the Oil & Gas Industry that need to be tackled
- Typical risk responses used by the Oil & Gas Industry megaprojects
- Risk ownership as a critical part of risk management
- The importance of communication and escalation in Oil & Gas projects
- Key qualitative, semi-quantitative and quantitative risk responses
Who Should Attend?
This training course is suitable to a wide range of professionals but will greatly benefit anyone working on, interfacing with, or providing governance with respect to oil and gas projects:
- Project Risk Managers
- Project Managers
- Commercial Management
- Project Engineers
- Procurement & Logistics
- Planners
- Estimators / Cost-Controllers
Course Outlines:
Fundamental Project Risk Management Concepts:
- Establishing risk against organization 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
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)
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
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)
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