Although ANSI approved ANSI / AIHA Z10-2005 – Occupational Health & Safety Management Systems in July 20051, the United States still does not have a National Risk Management Standard.

Risk management is not just something for corporations or public organisations, but for the life cycle of any E&P activity whether short or long term2. The benefits and opportunities should be viewed not just in the context of the E&P activity itself but in relation to the many and varied stakeholders who can be affected. By meeting the various component parts of this standard, our industry will not only be in compliance but can also measure itself against a new standard which represents best global practice.3 

Risk management should be a continuous and developing process which runs throughout the organisation's strategy and the implementation of that strategy. It should address all the risks surrounding the organisation's E&P activities past, present and in particular, future. It must be integrated into the culture of the organisation with an effective policy and a programme led by the most senior management. It must translate the strategy into tactical and operational objectives, assigning responsibility throughout the organisation with each manager and employee responsible for the management of risk as part of their job description. It supports accountability, performance measurement and reward, thus promoting operational efficiency at all levels.

The focus of good risk management is the identification and treatment of these risks. Its objective is to add maximum sustainable value to all E&P activities of the organisation. It marshals the understanding of the potential upside and downside of all those factors which can affect the organisation. It increases the probability of success, and reduces both the probability of failure and the uncertainty of achieving the organisation's overall objectives.

Risk management is central to any organisation's strategic management. It is the process whereby organisations methodically address the risks attaching to their E&P activities with the goal of achieving sustained benefit in the form of delivering superior environmental and safety performance within each E&P activity and across the portfolio of all E&P activities.

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