Risk Tolerance in the Oilfield

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Risk Tolerance in the Oilfield
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Agenda

• Risk tolerance defined
• Types of risk
• Tips for minimizing risk

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Risk Tolerance What is it?

• The amount of risk we
• will take to achieve a goal

4
3 Questions

• Hazard identification
• Do I see it?
• Risk perception
• Do I understand it?
• Risk tolerance
• Do I accept it?

5
Overestimating Our Ability

• Mitigation strategies
• Know yourself
• Stay alert
• Watch co-workers backs
• Am I really the best driver on the road?

6
Underestimating the Risk

• Mitigation strategies
• Communicate
• Learn from the past
• Get descriptive
• Question yourself
• How bad could it be really, how bad?

7
Personal Experience

• Mitigation strategies
• Talk about the past
• Show evidence
• Communicate
• Does my experience with this task make me
  cautious or confident?

8
Complacency

• Mitigation strategies
• Act like a rookie
• Talk it through
• Teach it
• What could go wrong THIS time?

9
False Sense of Control

• Mitigation strategies
• Stop/think
• What is motivating me to take the risk?
• Test assumptions
• If Im in control, am I really safer?

10
Cost of Non-Compliance

• Mitigation strategies
• Raise the stakes
• Remove barriers
• Increase reward
• Would I be doing it this way if my supervisor or
  the safety officer were watching?

11
Desire to Get Ahead

• Mitigation strategies
• Remove rewards for taking risk
• Eliminate barriers to doing it the right way
• Am I doing things right and doing right things?

12
Overconfidence in Equipment

• Mitigation strategies
• Raise awareness of
• Tool and equipment rating limitations
• Equipment and engineering design limitations
  (including homemade equipment)
• Can I totally rely on this equipment?

13
Overconfidence in PPE, Rescue

• Mitigation strategies
• Eliminate misconceptions
• Define limitations
• Think differently
• What would I do differently if I didnt have my
  PPE?

14
Role Models, Peer Pressure

• Mitigation strategies
• Find good role models
• Scrutinize standards
• Ask questions
• Does the go-to leader in my group encourage
  risk-taking?

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Risk Tolerance Factors

1. Overestimating our ability
2. Underestimating the risk
3. Personal experience
4. Complacency
5. False sense of control

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Risk Tolerance Factors

1. Cost of non-compliance
2. Desire to get ahead
3. Overconfidence in equipment
4. Overconfidence in PPE, rescue
5. Role models, peer pressure

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The Roadway to Unsafe Behavior

• I do not see the risk.
• I see the risk, but I do not understand it.
• I understand the risk, but I accept it.
• I choose the unsafe path.

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The Roadway to Safe Behavior

• I see the risk.
• I understand the risk.
• I reject the risk.
• I choose the safe path.

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Stop

• What could go wrong?
• How bad could it be?
• Has anything changed?

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Think

• Am I physically andmentally ready?
• Do I clearly understandthe task?
• Do I have the right toolsand equipment?

21
Act

• Make it safe
• Use the right tools
• Follow safety procedures
• Reduce risk
• Cant do it safely?

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Act

1. Stop the operation
2. Talk to a supervisor

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Recap

• Ask yourself 3 questions
• Do I see the risk?
• Do I understand the risk?
• Do I accept the risk?

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Recap

• Stop, think, act
• Cant make the task safe?
• Stop the operation
• Talk to a supervisor

25
Recap
Think about family and friends.
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Resources

• Strategies for Understanding and Addressing Risk
• Personal Risk Assessment Over-estimating
  Personal Capabilities

The concept and content for this presentation
was adapted courtesy of the ExxonMobil
Corporation.