Risk management is applied from initial project planning to operations and decommissioning. Often we describe the risk by its potential effects and their corresponding likelihoods. We apply the precautionary principle in our assessment of HSE risk and associated impacts - with regard to HSE, that is, we do not take a calculated chance in order to achieve other goals.

To respond to the diverse challenges and opportunities that result from our activities we take a holistic approach to risk management, including risks in the areas of HSE, social responsibility, ethics and anti-corruption.

We take a multi-disciplinary approach to risk management, drawing on tools and expertise from our HSE, social responsibility, and ethics and anti-corruption disciplines to respond to the diverse challenges and opportunities that result from our activities.

Managing HSE risk

Risk management is a continuous process, and the cornerstone of HSE management. HSE risk comprises the possibilities for harmful effects of both unintentional incidents and planned operations. As part of the decision-making process, relevant HSE risk factors are identified and assessed and relevant measures to control risks are implemented.

  • HSE risk must be identified and documented for all activities.
  • Risk tolerance criteria must be established and documented at the relevant level of activity. The format must be adapted to the use and decisions to be taken. The criteria must specify minimum requirements based on; authority and Statoil minimum requirements and the HSE level in relevant similar facilities, industry, activity. area or country.
  • Identified HSE risk factors must be assessed against established tolerance criteria.
  • Necessary risk-reducing measures must be implemented in order to meet the criterias, and further to reduce the risk of harm so that it is as low as reasonably practicable (ALARP).
  • Impact assessments will be performed for all relevant projects to assess environmental, social and health impacts, and to define measures to reduce or avoid negative impacts and enhance benefits.
  • Risk analyses (quantitative/qualitative) will be used actively to obtain a balanced picture of probability and consequences of incidents. Risk analyses will be used to identify and assess functions and

defects that are critical to health, safety and the environment, and as a basis for design and improvements.

  • The performance and status of measures to reduce HSE risk will be established and followed up.
  • Identified HSE risk factors will be included in the basis for the selection and planning of supervisory activities.

With respect to the management of environmental impacts, the overall management system of the Statoil group and the management systems of our operational entities are in line with the principles described in the ISO 14001 standard for environmental management systems (EMS).

Issue management

Our issue management process is designed to monitor issues that arises in countries where we operate. From a sustainability perspective, the process is useful because it captures the concern of stakeholders - frequently concerns that touch upon product responsibility, ethical behavior, environmental concerns and a variety of sustainability issues that require our attention.

Information on other relevant risk processes

We assess risks systematically in countries that are relevant to our operations in order to better understand local conditions, the business culture and external factors - including political, social, environmental, security and ethical dimensions. These assessments also aim to identify measures to mitigate risk.The procedure is elaborated in a separate article on country risk assessments.

We carry out risk and due diligence assessments - including our business relationships - in order to make informed investment decisions.  The procedure is elaborated in a separate article on integrity due diligience.

We conduct integrated impact assessments that cover all activities throughout the project life cycle. The procedure is outlined in a separate article on integrated impact assessments.

We engage and consult with our employees, host communities and other stakeholders to ensure continued support for our presence and our operations. The procedure is elaborated in our article on how we are engaging communities.