Project Risk Control

Doug OffOjai Oil Company

Golden State StorageMay 02, 2012

Lake View Oil #103/14/1910 – 02/15/1955

8.25 million barrels produced4.3 million barrels saved

The rest an ecological disaster

Dry Hole - $3,685,000

Risk consists of two things:◦ The probability that something will go

wrong◦ The negative consequences that will occur

if something does go wrong. Risk control allows you to identify and

manage potential problems that could undermine key business initiatives or projects.

What is Risk Control?

1. Identify threats before you start the project.

2. Assess the likelihood of the risk happening and possible impact

3. Manage the risk4. Continue conducting regular

reviews – don’t lose track of the balance sheet!

Steps for preparing a Risk Control Analysis…

Risk is less acceptable at a higher level of management - desire to not be the person responsible for failure

Moral equivalence – using a small risk as a justification for performing a larger risk◦Guilt or shame vs. risk◦Risk is happiness◦Jyn – the Moroccan spirit of good and

bad

Social Science’s Place in Business Decisions

Risk vs. Reward: Upgrades to Santa Fe Springs Storage Facility

Before (August 2011) After (April 2012)

Removal of Old Landscaping

Trench Dug For New Power

Office – One Month Progress

Second Floor Removed(Joists Too Short)

New Apartment Being Framed

Scaffolding Used to Finish Outside of Office Building

HVAC Unit Being Installed

New Awning Being Installed on Office Building

New Monument Sign

Night Shot of Main Office

Inside Upgraded Office

Inside Resident Manager’s Upgraded Apartment

Happiness is knowing you have a ride back…..maybe