ESSO AUSTRALIA LTD'S APPROACH TO RISK ASSESSMENT AND MANAGEMENT

Abstract

Management of operational risk has become critical in the hydrocarbon process industry. The Esso Australia Ltd Risk Assessment and Management System comprises three defined levels, covering field and management risk control through to formal structured risk assessment. The process steps within each level are common and include planning, hazard identification and assessment, reporting, follow-up and risk closure. Methodologies and degree of detail differ depending on the level and application. The core philosophies underlying the system are:

clearly defined responsibilities and approvals for risk ownership, stewardship, follow-up and closure;

risks identified and assessed at the lowest appropriate level in the organisation;

a common process for risk evaluation and ranking.

emphasis on risk reduction follow-up action; and

appropriate competency and training.

The system also specifies the risk assessment requirements for major facilities and activities. For the offshore platforms these are integrated with the Safety Case requirements.

Since its development, the Esso system has played a significant role in improving Esso's overall safety by providing a formal, integrated and consistent process for identifying and controlling risks and hazards at all levels and through each phase of production operations and support activities.