Risk Management A picture of understanding and prioritization

Risk Management – “A picture of understanding and prioritization” Mads Hembre Leading Advisor Risk Management in Projects Classification: Internal 2010 -11 -26

Classification: Internal 2010 -11 -26

Classification: Internal 2010 -11 -26

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 R 3 • Risk module Classification: Internal 2010 -11 -26

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 Classification: Internal 2010 -11 -26

Step by step… 2007 2008 2009 2010 2011 2012 2015 “Customers” PRO UPN, TNE, INT, NG, GBS Global Governing documents WR 2365 WR 2404 GLxx RM in FR 05 GL DGSP Classification: Internal 2010 -11 -26 “Shall” WR 2365 Aggregation Revision of WR 2404 GL Stakeholder Mgt One document Risk strategy

Step by step… 2007 2008 2009 2010 2011 2012 Development New Web New Scale Risk Lite ”aggregation” Risk based Monitoring R 3 ”Reports across” Action calculation Contingency vs Register Target Cost Risk profile ”Logical aggregation” Available checklists “Total risk picture” Classification: Internal 2010 -11 -26

Continuous improvement 2007 2008 Aligned – terms/process 2009 2010 Project Managers agenda “Standard” Risk based experience ”More quantitative” • Context • Description • Action strategy “Risk Mgt for Mgt” 2010 -11 -26 2012 Risk based Monitoring Awareness Classification: Internal 2011 Aligned scales Aligned cause categories Risk based processes 2015

Homepage Network Classification: Internal 2010 -11 -26

Presentations, tools, request, examples… Classification: Internal 2010 -11 -26

Risk module users Classification: Internal 2010 -11 -26

The Risk Management process Classification: Internal 2010 -11 -26

Users from different BU’s * Some few CFO users added to GBS Classification: Internal 2010 -11 -26

Risk module Reports Risks list Risk Matrixes Action list Action Classification: Internal 2010 -11 -26

Risk actions and quality control activities Project Risk Identification Disciplines Contracts Subprojects Risk Assessment Risk Action Risk Control Quality System Contract/discipline Audit Examination Assignment No tify Observation s Classification: Internal 2010 -11 -26 Pr epar e Follow up Ex ecute R epor t Close-out

Risk based Monitoring 1. Target Input 2. Outcome 3. Objectives/ A strategy Risk Breakdown Structure / WBS Categories / Disciplines Risk Module Monitoring Module -Quality -HSE Classification: Internal 2010 -11 -26

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. Classification: Internal 2010 -11 -26

Stakeholder and risk management Classification: Internal 2010 -11 -26

Cost assessment Deviatio n • Cost • Progres s • Both 50% ? % CCE Classification: Internal 2010 -11 -26 C o n ti n g e n c y R e s e r v e

Cost impact Classification: Internal 2010 -11 -26

Aggregation Top 10 pr. MPPx ODV Business Cluster MPPx Field Projects Oseberg V&M X B&B Y PRO MOD Project A Projects Classification: Internal Top 10 pr. field 1 2010 -11 -26 Troll V&M X V&M Z B&B Y PRO MOD Project A Gullfaks V&M C B&B A PRO MOD Project A Other V&M A B&B A PRO MOD Project A Top 10 domene

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, Ui. S, other internal departments, TNE, GBS, INT) • Understanding Statoil Way (internal participations) Classification: Internal 2010 -11 -26

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) Classification: Internal 2010 -11 -26

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) Classification: Internal 2010 -11 -26

From web to R 3 • Risk Management Module • Monitoring Module • Experience Transfer Module • Link supplier information Risk module EXperience TRAnsfer module Classification: Internal 2010 -11 -26 Supplier info. Monitoring module

Adjustments… Classification: Internal P 1 -25 P 50 -75 P 75 -100 P 1 -5 P 5 -25 P 50 -100 2010 -11 -26

Aggregation of Risk Management PRO Top 10 Risk Register 2 Top 10 pr. cluster 2 PRO LED Business Cluster PRO ONO Top 10 pr. unit 2 PRO ONO Bergen Business Unit Field Projects Oseberg Project A Project B Project C Projects Classification: Internal 2010 -11 -26 Troll Project A Project B Project C Top 10 pr. field 1 Gullfaks Project A Project B Project C Other Project A Project B Project C Top 10 pr. project 1

41 MPPx MPPS Statfjord Snorre MPPN MPPB Sleipner Volve Brage Visund Veslefrikk Gimle Troll Grane Glitne Tordis Gullfaks Oseberg Heimdal Kvitebjørn Heidrun Kristin Njord Norne Snøhvit Åsgard Huldra Aker/ Reinertsen RS 2010 Keppel Maersk AOP Seawell AOP tampen Aibel Classification: Internal 2010 -11 -26 SNOREV Deutag/KCA Reinertsen Odfjell Ved aggregering fra ”underliggende” domener vil all relevant identifikasjons informasjon bli aggregert opp til overliggende domener

Distribute risks Sub Project level SDT Project A Project B Project C Project D Classification: Internal 2010 -11 -26

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 Classification: Internal 2010 -11 -26