Post on 30-Jan-2018
© 2013 Chevron U.S.A. Inc.
AIChE/SACHE 2013 Faculty Workshop
August 21, 2013, Richmond CA
Environmental Risk
Management
© 2013 Chevron U.S.A. Inc.
Areas of Discussion
2
Diversity of Environments
and Risks
Challenges and
Opportunities
Strategy to Understand & Manage Risk
© 2013 Chevron U.S.A. Inc.
Diversity of Receptors and Receiving Environments
3
© 2013 Chevron U.S.A. Inc.
Chemicals Products
Emissions
Discharges
Wastes
Inadvertent or undetected
releases
Diversity of Hazards
4
Resource Use /
Footprint Introduced species
Clearing
Dredging
Erosion
Water use
Environmental
Condition Noise
Light
Temperature
Global environmental
change
© 2013 Chevron U.S.A. Inc.
Managing Environmental Risk
Environmental Risk is
managed by 3 key
processes at Chevron
Environmental Stewardship
Environmental Aspects
Third Party Waste
Stewardship
Retirement of Assets
Environmental Performance
Standards
Environmental Health Social
Impact Assessment
HES Risk Management
5
© 2013 Chevron U.S.A. Inc.
Application of the Risk Matrix Environmental risks are evaluated at a high level during the IHAZID
6
1 Likely 6 5 4 3 2 1
2 Occasional 7 6 5 4 3 2
3 Seldom 8 7 6 5 4 3
4 Unlikely 9 8 7 6 5 4
5 Remote 10 9 8 7 6 5
6 Rare 10 10 9 8 7 6
6 5 4 3 2 1
Incidental Minor Moderate Major Severe Catastrophic
Consequence
Indices
Decreasing Consequence/Impact
Decre
asin
g L
ikeli
ho
od
Most routine environmental
practice. Requires diligence
to ensure safeguards remain
in place. Priorities
differentiated by ES.
Sensitive
environments increase
the risk of routine
practice and require
additional safeguards
Large spills can have
severe or catastrophic
impacts and must be
managed to very low
likelihood.
Smaller spills –
typically short
term
consequence,
relatively higher
likelihood.
Without verified
safeguards,
environmental practices
can result in elevated
risk
© 2013 Chevron U.S.A. Inc.
Managing Environmental Risk in Operations
HES Risk Management frames risks at an asset group and/or business unit level and provides
governance on risk criteria and mitigation. Environmental Stewardship is the detailed process that
identifies and prioritizes environmental risks (aspects) and mitigation actions.
7
Identifies potential spill scenarios as
environmental aspects and further refines
understanding of the risk
Defines certain standard practice via
Environmental Performance Standards
(EPSs)
Prioritizes environmental aspects based on
a variety of criteria, including reputation
Stewards long term mitigation of
environmental risks
Drives sustainable risk reduction through
ES plan
Identifies potential scenarios that could
result in loss of containment and
qualitatively estimates the risk
Requires verification that routine practices
(level 6 risks) are aligned with established
standards
Highlights reputation risks using
signposting
Provides governance on closure of
environmental risk mitigations
Focuses attention on near term closure of
elevated risks
Environmental Stewardship
(routine operations focused)
HES Risk Management
(event focused)
© 2013 Chevron U.S.A. Inc.
Managing Environmental Risk in Projects
Stakeholder Engagement is a critical
component of the ESHIA process. ESHIA
allows for consultation with internal and
external stakeholders on a range of project
issues, including health, safety and
environment risks. ESHIA is also the
mechanism to fully characterize
environmental and health impacts and identify
mitigation measures
Integration is the key strength of HES RM.
The IHAZID study enables a big picture look
at health, environment, safety and reputation.
This is particularly important for projects with
significant process hazard risks such as LNG,
sour gas development and deepwater drilling.
8
HES Risk Management
Screen-
Scope
ESHIA
Management
Plan
Assess
Impact
Stakeholder Engagement
Risk
Register IHAZID
Risk
Studies
Risk
Reduction
Plan
Environmental, Health, Social
Impact Assessment (ESHIA)
© 2013 Chevron U.S.A. Inc.
Key Challenges
9
Integrating risk
perception into
decision making
Assessing and
addressing delayed
impacts and
cumulative risk
Continuing to
understand the
integrated risk
picture
© 2013 Chevron U.S.A. Inc.
Unique Tool Set and Terminology
10
Decision making on risk
priorities occurs using inputs
from many sources – each
with unique tools and
terminology
EPA defines risk to be the chance of
harmful effects to human health or
to ecological systems resulting from
an environmental stressor
A stressor is any physical, chemical
or biological entity that can induce
an adverse response
© 2013 Chevron U.S.A. Inc.
Challenges to Understanding the Risk
Multiple receptors
Consequences often
– Have effects that are
delayed in time from the
exposure
– Are multi-causal or
cumulative
– Do not result in clear
causation even with
proven exposure
Typically greater
uncertainty and more
difficult to characterize
and bound the risk
(relative to safety risk)
11
© 2013 Chevron U.S.A. Inc.
Risk Assessment Informs Risk Management
12
Risk Assessment Output
Risk Management Decision
Risk Characterization
Exposure
Assessment
Dose-Response Assessment
Hazard Identification
Political Considerations
Risk Management
Options
Economic Factors
Policy Considerations
Statutory & Legal
Considerations
Social Factors