Managing risk to maximize profit

Unmanaged risk costs money and negatively impacts profitability, Ingatius Ifelayo, manager of deepwater operational excellence for ChevronTexaco, told participants at the Offshore West Africa conference in Abuja, Nigeria. Ifelayo says his company is, "using risk management to ensure a worldclass project on Agbami."

Unmanaged risk costs money and negatively impacts profitability, Ingatius Ifelayo, manager of deepwater operational excellence for ChevronTexaco, told participants at the Offshore West Africa conference in Abuja, Nigeria. Ifelayo says his company is, "using risk management to ensure a worldclass project on Agbami."

According to Ifelayo, Chevron is using a planned and systematic process to identify, assess, monitor, and control risk on Agbami. He explained the risk program in simple terms:
A ascertain risk
G generate risk ranking
B build a mitigation plan
A action plan
M monitor plan
I improvement

In evaluating Agbami development, Chevron identified over 400 risks and managed to reduce or eliminate all of them, Ifelayo said. One significant result of the intense evaluation of Agbami is that the information generated can be applied to other ChevronTexaco projects, he said.

"Risk management is essential to eliminating project surprises," Ifelayo said.

03-17-04

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