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Corporate Risk Matrix EGPC English Final PDF

The document presents a risk matrix that evaluates terms on scales of frequency, probability, and likelihood. It ranges from rare and unlikely on the left, to very likely and almost certain on the right. The matrix also considers the severity of risks based on their potential human, social, and environmental impacts as well as their financial and non-financial business impacts.

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Ahmed Hassan
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0% found this document useful (0 votes)
386 views1 page

Corporate Risk Matrix EGPC English Final PDF

The document presents a risk matrix that evaluates terms on scales of frequency, probability, and likelihood. It ranges from rare and unlikely on the left, to very likely and almost certain on the right. The matrix also considers the severity of risks based on their potential human, social, and environmental impacts as well as their financial and non-financial business impacts.

Uploaded by

Ahmed Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Term Rare Unlikely Possible Likely Very Likely Almost Certain

Frequency -6
≥ 10 to < 10
-5 -5
≥ 10 to < 10
-4 -4
≥ 10 to < 10
-3 -3
≥ 10 to < 10
-2 -2
≥ 10 to < 10
-1 -1
≥ 10 to ≤ 1

Probability ≥ 0.0001% to < 0.001% ≥ 0.001% to < 0.01% ≥ 0.01% to < 0.1% ≥ 0.1% to < 1% ≥ 1% to < 10% ≥ 10% to ≤ 100%
CORPORATE RISK MATRIX Event has Event has occurred
A similar event has not A similar event has occurred at least once more than several The event likely to
A similar event has
yet occurred occurred somewhere in in ENTITIES or is likely times in ENTITIES or occur several times in
Likelihood somewhere in our our industry but not in
occurred at least Once
to occur within the has occurred once or the lifetime of the
in ENTITIES
industry ENTITIES lifetime of 10 similar twice in the lifetime of COMPANY
COMPANIES the COMPANY

HSE Impact Business Impact


Severity Financial Non-Financial # 1 2 3 4 5 6
Health and Safety Environmental
Financial Impact on Assets, Projects Reputation, Media, Key Stakeholder Reaction and
and Production Regulatory Enforcement

• International concern.
• Potential for multiple fatalities Onsite. • Environmental impact at the global level, e.g., the unintended release
• Extensive negative attention in international media.
• > 10 lost-time injuries requiring hospital of hydrocarbons with globally widespread environmental damage. • Catastrophic damage.
• Long-term national outrage.
treatment for more than 24 hours. • Future unsatisfactory impact for a period > 5 years. • Revamping necessary to resume the
• Substantial long-term damage to relationships with key
Disastrous • Single or more than 1 Public Fatality
• Multiple exposures to a hazardous substance
• Discharge of contaminants > 100,000L in the insensitive environment
and/or > 10,000L in the sensitive environment, e.g., coral reefs, nature
operations/business (> 50% of Annual
Production/Business/Profit Plan).
stakeholders.
• Action by a government resulting in a complete and
A 1A 2A 3A 4A 5A 6A
or condition causing an emergency health reserves, rivers, canals, waterways, and close to groundwater wells.
permanent loss of license to operate.
effects that may threaten the lives of more
• Potentially severe impact on access to new areas.
than one worker.

• Environmental impact at the national level, e.g., the unintended • International public attention.
• Potential single fatality Onsite.
release of hydrocarbons with nationally widespread environmental • National & global media coverage.
• 4 to 10 lost-time injuries requiring hospital
damage. • Extensive damage. • Medium-term national outrage.
treatment for more than 24 hours.
Catastrophic • Serious injury to the public.
• Single exposure to a hazardous substance or
• Future unsatisfactory impact for more than one and up to five years.
• Discharge of contaminants >10,000: ≤100,000 liters in the insensitive
• Major change to resume • Moderate long-term Damage to relationships with key
operations/business (> 35%: ≤ 50% of Annual stakeholders. B 1B 2B 3B 4B 5B 6B
environment and/or >1,000: ≤10,000 liters in the sensitive environment, Production/Business/Profit Plan). • Action by a government resulting in partial and/or
condition causing emergency health effects
e.g., coral reefs, nature reserves, rivers, canals, waterways, and close to temporary loss of license to operate.
that may threaten the life of one worker.
groundwater wells. • Substantial regulatory enforcement action by regulators.

• Environmental impact at the regional level, e.g., the unintended


• National public concern.
release of hydrocarbons with extensive environmental damage across
• 2 or 3 lost-time injuries cases. • Extensive negative attention in national media.
several governances. • Major damage.
• A total irreversible disability case. • Long-term local outrage.
• Future unsatisfactory impact for around one year. • Long time change to resume
Major • Multiple partial irreversible disabilities.
• Single or multiple exposures to a hazardous
• Discharge of contaminants >1,000: ≤10,000 liters in the insensitive
environment and/or >100: ≤1,000 liters in the sensitive environment,
operations/business (> 20%: ≤ 35% of Annual
Production/Business/Profit Plan).
• Partial Damage to relationships with key stakeholders.
• Moderate regulatory enforcement action by regulators. C 1C 2C 3C 4C 5C 6C
substance or condition causing a state of ill • Potentially restrictive measures and/or impact on the grant
e.g., coral reefs, nature reserves, rivers, canals, and waterways, and
health that extend for long periods. of licenses.
close to groundwater wells.

• Environmental impact at the local level, e.g., the unintended release


• A Lost Time Injury case. of hydrocarbons with localized environmental damage within one • Regional public concern.
• A partial irreversible disability case. governance. • Local damage. • Negative attention from national media.
• An injury that led to a reversible disability • Future unsatisfactory impact for months “less than one year). • The unit has been repaired/replaced to • Limited local outrage.
Serious (total or partial).
• Single or multiple exposures to a hazardous
• Discharge of contaminants >100: ≤1,000 liters in the insensitive
environment and/or >10: ≤100 liters in the sensitive environment, e.g.,
resume operations/business (> 1%: ≤ 20% of
Annual Production /Business /Profit Plan).
• Limited damage to relationships with local stakeholders.
• Limited regulatory enforcement action by regulators.
D 1D 2D 3D 4D 5D 6D
substance or condition causing a state of ill coral reefs, nature reserves, rivers, canals, waterways, and close to • Possibly negative stance of local government.
health requiring treatment > 24 hrs. groundwater wells.

• Environmental impact at the immediate level, e.g., the unintended


release of hydrocarbons with immediate area damage to the
• Some local public concern/media coverage.
• Medical Treatment Case. environment. • Minor damage.
• Limited damage to relationships with local stakeholders.
• Restricted Work Day Case. • Future unsatisfactory impact for less than six months. • Possible short disruption of
Minor • Single or multiple exposures to a hazardous
substance or condition causing minor health
• Discharge of contaminants >10: ≤100 liters in the insensitive
environment and/or ≤10 liters in the sensitive environment, e.g., coral
operations/business (> 0.1%: ≤ 1% of Annual
Production / Business / Profit Plan).
• Government reaction to non-compliance with legal and
regulatory requirements that do not result in consequences E 1E 2E 3E 4E 5E 6E
beyond simply restoring regulatory compliance.
effects requiring treatment < 24 hrs. reefs, nature reserves, rivers, canals, waterways, and close to
groundwater wells.

• The limited impact on the environment at the level of the polluted


area, e.g., the limited unintended release of hydrocarbons.
• No public concern/media coverage.
• First Aid Case. • Future unsatisfactory impact for days or weeks. • Slight damage.
• Negligible damage to relationships with local stakeholders.
Notable
• Single or multiple exposures to a hazardous
substance or condition causing a slight non-
• Discharge contaminants with no impact on the insensitive
environment, e.g., coral reefs, nature reserves, rivers, canals, and
• Disruption to operations/business (≤ 0.1%
of Annual Production / Business / Profit Plan).
• Non-compliance with regulatory requirements that do not
generate any government reaction.
F 1F 2F 3F 4F 5F 6F
prolonged health effect. waterways, and close to groundwater wells, and/or ≤ 10 liters in an
insensitive environment.

Risk Level Minimum Required Action Management Signoff Authority

Level 1 - High Long-term operation at high risk is not allowed. Immediately identify risk mitigation according to the hierarchy of controls and implement risk mitigation to reduce the risk to ALARP within 30 days. In case of an extension, approval from the relevant holding company shall be obtained. Include in Risk Register for tracking. Consider advanced Risk Analysis methodologies for further Signoff by Chairman / Managing Director(s) / VP's/CEO
(Intorelable) investigation. Reporting the risk to the relevant top management within 24hrs. Notify EGPC or the relevent Holding Companies about the risk within 7 Days. (Consultation with appropriate SME required)

Level 2 - Medium/High Signoff by Senior management, i.e., Operations GM,


Conduct an ALARP study to determine if the cost of implementing additional risk mitigation is appropriate. Include in Risk Register for tracking. Consider advanced Risk Analysis methodologies for further investigation. Reporting the risk to the relevant top management within 7 Days.
(Torelable if ALARP) Projects GM, Drilling GM, Financial GM, HSE GM …etc.
Level 3 - Medium Signoff by Function GM, i.e., District GM, Refinery Unit GM
Conduct an ALARP study to determine if the cost of implementing additional risk mitigation is appropriate. Monitor and improve the effectiveness of current controls. Include in Risk Register for tracking. Reporting the risk to the relevant top management within 30 Days.
(Torelable if ALARP) …etc.
Low Signoff by Area Authority, i.e., OIM, Production Manager,
Low Priority, monitor and improve the effectiveness of current controls. Include in Risk Register for tracking.
(Broadly acceptable) Maintenance Manager …etc.

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