Risk Workshop and Risk Register (Research Paper Sample)

Risk Workshop and Risk Register
Name:
Institution:
Risk Workshop and Risk Register
The British Petroleum (BP) operates a high-risk business that involves highly flammable products. Risk management is therefore of vital importance to the company than others that may require the same systems in place. Risk awareness and readiness is there an integral part of the company, which follows that the company is committed to avoiding past errors such as the March 23, 2005 explosion at the Texas City Refinery that left 15 workers dead (Hunter, 2008). It is therefore imperative that effective risk assessment and mitigation measures are put in place to deal with the overarching responsibility of the company to ensure the safety of both its employees and the public. The process of a risk workshop and development of a risk register are therefore important to BP in establishing the course of managing the company’s risks, in which these controls are provided below.
Pre-Workshop Activities
These include elements such as identification of stakeholders expected to be part of the workshop. Once this is done, it will be prudent to devise a communication and consultation plan that can be integrated into the development process. The other activity is to determine the number of workshops necessary for and dependent on the project. Following this, a discussion of the workshop organization to include details such as dates, venues, room setup, equipment required, and the invitations is important and finally the evaluation of the extent to which the pre-workshop meeting was effective in achieving its objectives (HSE, 2009).
Risk Workshop Agenda
DAY 1

Time (min)

Morning


1 Introduction to workshop

5

2 Confirmation of project objectives

15

3 Review of the scope of the risk process

30

4 Setting up of rules and guidelines to streamline workshop activities

30

5 Briefing of project members on risk management

15

6 Drafting expectations and outcomes

30

Afternoon


7 Risk analysis and review


* Reviewing current risks

20

* Analysing risks using the Risk Breakdown Structure

20

* Reviewing draft risks

20

* Analysing constraints and assumptions to determine more risks

15

* Identifying further risks using a Standard Risk Checklist

15

8 Justification of risks

10

9 Standardizing terms used to describe identified risks

20

DAY 2

Time (min)

Morning


10 Recapitulation of previous day’s activities using an assessment scheme

10

Assessment of risk probability and impact

20

Categorizing risks

20

Afternoon


Nomination of Risk Owners

15

Conclusion

5

Adopted from Practical Project Risk Management: The ATOM Methodology by Hillson and Simon
Relevance of Risk Workshop Agenda Activities
The significance setting up this pre-workshop activity table is to provide a clear map that guides the workshop participants to achieve the expected outcomes in a timely and resourceful manner. Each activity in the pre-workshop activities map is relevant to achieving set goals for varied reasons. The relevance of an introduction to the workshop is to provide the project members with an insight into the project goals, scope, and an acquaintance to other project members. Through this activity, the workshop can commence with every project member actively engaged. Confirmation of project objectives and the review of the scope of risks are important steps that provide project members with an overview of pressing matters in the workshop. In this case, the objective of the project is to develop tangible outcomes for the BP risk management needs.
Every workshop or seminar has the need of ground rules that define conduct and behaviour of members during the entire event. The importance of rules is to set standards for how discussions and opinions should be carried out and aired. The relevance of rules is to obtain and maintain orderliness, which helps in timely delivery of outcomes. Briefing of project members on risk management is intended to assist and automate the thought process, which leads to drafting of outcomes and expectations. The risk analysis and review process requires the most input and is quite important is setting up current and new risks that are considered to be the most pressing in the company. These are then justified and standardized as an indication of the agreed resolve requiring appropriate course of action and control measures. This step is quite consistent with those of risk probability and impact assessment as well as risk categorization. The objectives of these activities are to produce a list of risks to be considered for management and mitigation. Nomination of Risk owners is the final activity before closing of the workshop, which often helps in preparing a risk register.
Risk Register
Project Number:
Project Title:

Client:
Project Manager:

Risk Ref.

RBS Ref.

WBS Ref

Risk Owner:

Risk Type: (T/O)

Risk Status: Active/Closed/Deleted/Draft/Expired/Occurred)

Risk Title:

Risk Description:

Cause of Risk

Effect on Objectives


Objective

Impact Rating
Nil/VLO/LO/MED/HI/VHI

Impact Description

Employee safety under high-risk conditions (risk of explosions or suffocation)

Time

VHI

Severe impacts leading to more than six (6) months corrective and risk mitigation measures
Normal business operations are unable to resume because of large losses


Cost

VHI

Physical injuries and deaths of both employees and public resulting in more than $1m compensation settlement


Quality

VHI

Event or incident leading to the loss of lives or permanent incapacitation of employees or public
Includes impact causing large number of casualties and permanent psychological incapacitation

Probability Rating
Nil/VLO/LO/MED/HI/VHI

Other

VHI

The product type of the BP makes the risk of explosions causing death and injuries to employees and the public very high. Petroleum is highly flammable thus this risk remains the greatest faced by BP costing time and money

Date Risk Raised:

Date Risk Closed/Deleted/Expired/Occurred

Environmental effects

Time

VHI

More than six (6) months to contain leakage of petroleum from a plant to the public


Cost

VHI

Risk mitigation measures costing more than $1m


Quality

VHI

Extremely toxic leakage affecting off-site locations with adverse impacts to the environment requiring external intervention

Probability Rating
Nil/VLO/LO/MED/HI/VHI

Other

VHI

The risk of negative environmental impacts from release of toxic materials to the natural environment are very high because petroleum is highly toxic to living organism

Date Risk Raised:

Date Risk Closed/Deleted/Expired/Occurred

Customer Experience

Time

MED

Unsatisfactory customer service related to less than optimum treatment and/or inadequate information leading to short-term effects of less than 7 days


Cost

LO

Legal suit against BP resulting in compensation of $1k-$10k


Quality

LO

Unsatisfactory customer service related to less than optimum treatment and/or inadequate information, which includes treatment without dignity and respect and can be readily resolved

Probability Rating
Nil/VLO/LO/MED/HI/VHI

Other

LO

BP maintains high level of customer service delivery thus any risks associated with customer experience are low
Following employee training, the level of this risk is low supported by the history of BP’s commendable customer relations (BP, 2015)

Date Risk Raised:

Date Risk Closed/Deleted/Expired/Occurred

Adverse Publicity (Negative Publicity)

Time

HI