1. Risk Tolerance in the Oilfield Disclaimer: These safety materials, resources and PowerPoint ® presentations are not intended to replace your company's health and safety policies or to substitute for specific state and federal standards. We do not guarantee the absolute accuracy of the material contained within these resources. Please refer to applicable state and federal standards for regulatory compliance. Note to trainer: This presentation includes speaker’s notes.

2. Agenda  Risk tolerance defined  Types of risk  Tips for minimizing risk

3. Risk Tolerance: What is it? The amount of risk we will take to achieve a goal

4. 3 Questions 1.Hazard identification  “Do I see it?” 2.Risk perception  “Do I understand it?” 3.Risk tolerance  “Do I accept it?”

5. Overestimating Our Ability Mitigation strategies:  Know yourself  Stay alert  Watch co-workers’ backs “Am I really the best driver on the road?”

6. Underestimating the Risk Mitigation strategies:  Communicate  Learn from the past  Get descriptive  Question yourself “How bad could it be… really, how bad?”

7. Personal Experience Mitigation strategies:  Talk about the past  Show evidence  Communicate “Does my experience with this task make me cautious or confident?”

8. Complacency Mitigation strategies:  Act like a rookie  Talk it through  Teach it “What could go wrong THIS time?”

9. False Sense of Control Mitigation strategies:  Stop/think “What is motivating me to take the risk?”  Test assumptions “If I’m in control, am I really safer?”

10. Cost of Non-Compliance Mitigation strategies:  Raise the stakes  Remove barriers  Increase reward “Would I be doing it this way if my supervisor or the safety officer were watching?”

11. Desire to Get Ahead Mitigation strategies:  Remove rewards for taking risk  Eliminate barriers to doing it the “right way” “Am I doing things right and doing right things?”

12. Overconfidence in Equipment Mitigation strategies Raise awareness of:  Tool and equipment rating limitations  Equipment and engineering design limitations (including “homemade” equipment) “Can I totally rely on this equipment?”

13. Overconfidence in PPE, Rescue Mitigation strategies:  Eliminate misconceptions  Define limitations  Think differently “What would I do differently if I didn’t have my PPE?”

14. Role Models, Peer Pressure Mitigation strategies:  Find good role models  Scrutinize standards  Ask questions “Does the ‘go-to’ leader in my group encourage risk-taking?”

15. Risk Tolerance Factors 1.Overestimating our ability 2.Underestimating the risk 3.Personal experience 4.Complacency 5.False sense of control

16. Risk Tolerance Factors 6. Cost of non-compliance 7. Desire to get ahead 8. Overconfidence in equipment 9. Overconfidence in PPE, rescue 10. Role models, peer pressure

17. The Roadway to Unsafe Behavior 1. I do not see the risk. 2. I see the risk, but I do not understand it. 3. I understand the risk, but I accept it. 4. I choose the unsafe path.

18. The Roadway to Safe Behavior 1. I see the risk. 2. I understand the risk. 3. I reject the risk. 4. I choose the safe path.

19. Stop  What could go wrong?  How bad could it be?  Has anything changed?

20. Think  Am I physically and mentally ready?  Do I clearly understand the task?  Do I have the right tools and equipment?

21. Act  Make it safe  Use the right tools  Follow safety procedures  Reduce risk Can’t do it safely…?

22. Act 1.Stop the operation 2.Talk to a supervisor

23. Recap  Ask yourself 3 questions: 1.Do I see the risk? 2.Do I understand the risk? 3.Do I accept the risk?

24. Recap  Stop, think, act  Can’t make the task safe? Stop the operation Talk to a supervisor

25. Recap Think about family and friends.

26. Resources The concept and content for this presentation was adapted courtesy of the ExxonMobil Corporation.  Strategies for Understanding and Addressing Risk Strategies for Understanding and Addressing Risk  Personal Risk Assessment : Over- estimating Personal Capabilities Personal Risk Assessment : Over- estimating Personal Capabilities