RISK What’s In It For ME!

HOW TO ESTABLISH A RISK BASED CULTURE Risk Overview Definition What Determines Risk Risk Tolerance Pay Attention to Thinking Recognize Risk Choices and Consequences Activity Conclusion

Risk Defined The potential of gaining or losing something of value. Values (physical health, social status, emotional well being, or financial wealth) can be gained or lost when taking risk from a given action or inaction, foreseen or unforeseen Risk can also be defined as the intentional interaction with uncertainty

What Determines Risk aversion or acceptance? Age Gender Previous Experience Education Health Factors Physical Conditioning Time Constraints Extracurricular Activities

What does risk look like?

….More risk

Tolerance The ability or willingness to tolerate something The capacity to endure continued subjection to something The allowable amount of variation of a specified quantity

Risk Tolerance Some rules cant be ignored: Gravity “Do this, don’t do that…if you do you will be safe! Rely on the employee to: Perceive Recognize Understand the consequence(s) Make a decision based on the risk Not tolerate high risk behavior

risk tolerance Study by Dave Fennell; Imperial Oil Seven Factors that increase employees tolerance of risk: Overestimating capability/experience Familiarity with the task Voluntary actions and being in control Confidence in equipment Confidence in protection and rescue Potential gain or profit from action Role models accepting risk

What is acceptable risk? Individuals Companies Where are we as individuals and as a corporation knowingly or even unknowingly acting outside the world of expectations? Perception vs Reality

Perception vs Reality

Risk components The two components of risk: Severity – How bad can it be? Probability – How likely is it to happen to me? Every choice at work that carries risk involves your past experiences and present motivations How much risk will you tolerate? How bad can it be?

1 3 5 6 4 2

Pay attention to our thinking Internalize thoughts during the decision making process: Describe the situation List your thoughts List your feelings Evaluate your attitudes and beliefs Be objective; don’t blame, make excuses, true or false Control thinking to gain power and influence over any situation

Pay attention to our thinking Answer the question: WHO DETERMINES FEELINGS AND THOUGHTS IN ANY GIVEN SITUATION? The most important part of the thinking exercise: Evaluate your thoughts before a behavior or action takes place Because you know what’s coming don’t you! WHAT WERE YOU THINKING? Normally won’t ask that question until “post incident”

Recognize risk HIGH RISK – The likelihood of an action having great potential for harm; or LOW RISK – Most likely to “get away’ with the action with little to no personal consequence Important to consider both due to physical and emotional reactions and perceptions

Recognize risk

Recognize Risk STOP IMMEDIATELY Get Assistance Assumptions: You are familiar with the task You have the cognitive ability to recognize most, if not all the risks associated with the task. If either one of these assumptions is incorrect, or you are not sure… STOP IMMEDIATELY Get Assistance

Recognize risk For routine tasks with little to no risk…not asking to over analyze your feelings and perceptions… Recognize that even routine task carry a degree of risk that at least should be momentarily considered! Pay Attention to Your Thinking Recognize the Risk

Choices and consequences Situation Response based on the following How familiar Time pressure What’s my reward Others

Choices and consequences The goal: Generate multiple possibilities Identify possible consequences to response Chose the appropriate action based on the goal and the potential consequence Obviously the one with the least risk! Be confident in the decision and act based on choice

Choices and consequences

Exercise Scenario: It’s 5’oclock and you are the gang pusher for XYZ Roustabout Company. You are called to a location to replace a in-line check valve on a grasshopper pumping unit that has a 5 foot cellar. Pushing this gang for 5 years and the least experienced hand in the gang has 2 years What’s the risk? Oh yes, I forgot to mention the well has 30,000 ppm h2s

conclusion Hazard recognition Root cause investigations Prevention of injury, illness and fatality Reduced costs Everyone engaged in safety