Glossary

ALARP: As low as Reasonably Practicable (ALARP). Reducing Risks to ALARP means reducing risks to a level at which the cost and
effort (time and trouble) of further Risk reduction are grossly disproportionate to the Risk reduction achieved.

Consequences: Effect on People, Assets, Community or Environment if a Hazard is released. The term Potential Consequences is
used when looking at what might happen or what might have happened.

Hazard: An agent with the potential to cause harm to people, damage to Assets, or an Impact on the environment or community.

Industry: In the context of the Risk Assessment Matrix the oil, gas and petrochemical industry. However in some instances another
industry may be referenced, based on the Hazard being assessed. For example, if a site is assessing the Risk associated with
electrical work on power lines, it is reasonable to consider Industry as the electrical distribution or power industry.

Likelihood: Chance that a specified Consequence will happen. Likelihood is expressed qualitatively in terms of events that have
happened in the particular industry, Organization, or Location. Likelihood is estimated on the basis of historical evidence or
experience.

Location: In the context of the Risk Assessment Matrix a large self-contained worksite or a cluster of small self-contained worksites
which carry out the same activity. Examples are an offshore production platform, or a flow station, drilling rig, seismic unit, gas
processing plant, pipeline network, refinery, distribution terminal, road transport depot network, bitumen plant, network of retail
stations or large marine vessel, or an LNG terminal.

Organization: In the context of the Risk Assessment Matrix denotes an organizational unit 5 to 10 times smaller than the larger
Group Businesses (currently Upstream and Downstream). An Organization is either a Group Business (in the case of smaller Group
Businesses) or an organizational unit smaller than a Group Business such as a Class of Business in Downstream or a Region in
Upstream. Organization is used in the description of Likelihood levels on the RAM. Business Leaders should provide detailed
guidance on what the term organization and Location means for each Business.

Risk: Risk is the likelihood that a specific undesired event will occur within a specified period. Risk is therefore a function of both the
Harm to People Damage to Assets Likelihood and the Consequence of a specific Hazard being released.
DEFINITION DEFINITION
0 No injury or health effect 0 No Damage Risk Assessment Matrix (RAM): A qualitative risk assessment tool to identify the risk potential associated with the consequence of a
1 Slight injury or health effect 1 Slight Damage particular hazard release scenario in order to understand what level of control and recovery analysis is required to manage the risk
Costs less than US
No Treatment Case or First Aid Case of the release of that hazard to ALARP.
$100,000
Illnesses that result in noticeable discomfort, minor irritation or transient effects that are
reversible after exposure stops
2 Minor injury or health effect 2 Minor Damage
RAM: Risk Assessment Matrix
• Costs between US
Medical Treatment Case
$100,000 and US
Lost Workday Case or Restricted Work Case, where either has a duration of up to and STEP 1. Identify Potential Consequences - Consider all worst-case consequences arising from credible hazard release scenarios.
$1,000,000
including 5 days
STEP 2. Estimate the Severity of each Potential Consequence - Consider impact on people, assets, environment, and community, and
Illnesses with reversible health effects such as food poisoning and dermatitis
rate severity of each from 0-5.
3 Major injury or health effect 3 Minor Damage
Costs between US STEP 3. Estimate the Likelihood - Based on historical evidence or experience that such consequences have occurred within the
Lost Workday Case or Restricted Work Case, where either has a duration exceeding 5 days
$1,000,000 and
Illnesses with irreversible health effects such as sensitisation, noise induced hearing loss, industry, the organization, or a location. Rating is based on the consequence under consideration, NOT the likelihood that the
US $10,000,000
chronic back disorders or repetitive strain injury hazard will be released.
Mental illness due to stress with reversible health effects
STEP 4. Estimate the Risk Rating - The product of the consequence severity and the likelihood determines the risk rating on the
4 Permanent total disability or up to three fatalities 4 Major Damage
matrix.
Costs between US
Illnesses with irreversible health effects such as corrosive burns, asbestosis and silicosis
$10,000,000 and
Cancer MODIFICATIONS TO THIS DOCUMENT, INCLUDING THE RISK
US $100,000,000
Mental illness due to stress with irreversible health effects
ASSESSMENT MATRIX, ARE NOT ALLOWED UNDER ANY CIRCUMSTANCES
5 More than three fatalities 5 Massive Damage
Costs in excess of US
Illnesses with irreversible health effects such as multiple asbestosis cases traced to a single
$100,000,000
exposure situation
Cancer in a large exposed population

DEFINITION
0 No Effect
1 Slight effect, indicated by:
 Infrequent slight nuisance. (Nuisance to include interference
with reasonable comforts and enjoyments of life, general
inconvenience relating to day to day activities or enjoyment
of land).
 No observable adverse or perceived effect on livelihood,
social and cultural assets, community security, community
health, vulnerable or Indigenous People.
 Local public awareness but no discernible concern.
2 Minor effect, indicated by:
 Limited short term nuisance
 Limited effects on livelihood and/or social or cultural assets,
community health.
 No observable adverse effect on community security,
vulnerable or Indigenous Peoples.
 Local public concern.
3 Moderate effect, indicated by:
 Persistent nuisance.
 Effects on livelihood and/or social and cultural assets,
community health.
 Limited observable effects on community security, vulnerable
or Indigenous Peoples.
 Local or Regional public concern.
 Local stakeholders, e.g. community, NGO, industry and
government, are aware.
4 Major effect, indicated by:
 Persistent effects on livelihood and/or social and cultural
assets, community health.
 Effects on community security, vulnerable or Indigenous
Peoples and/or human rights infringements, that are serious
and/or at a community level.
 Mitigation is complex or protracted.
 National public concern.
 Impact on local and national stakeholder relations.
 National government and/or NGO involvement with
potential for international NGO action.
5 Massive effect, indicated by:
 Persistent, severe impact on livelihood, social and cultural
assets, community security, community health, vulnerable or
Indigenous Peoples and/or human rights infringements.
 Impact may affect a large geographic area or population.
 Mitigation is complex or protracted, and of limited
effectiveness.
 International public concern.
 High level of concern and action(s) by governments and/or
by international NGOs.
Community Environment
EXAMPLES DEFINITION
0 No Impact
Slight Effect, examples: 1 Slight Effect
 Noisy onsite activities that are audible in the community but do not cause inconvenience and are within standards. Slight environmental damage contained within the premises.
 Unplanned event: small oil spill confined on-site that doesn’t affect community water resources (e.g. drinking water, fisheries),
Examples include but are not limited to:
and evaporates or dissipates naturally.
 Failure to engage early, leading to need to increased engagement later in the project.  A small spill in a process area or tank farm area that
readily evaporates.
Minor Effect, examples: 2 Minor Effect
 Unplanned: Oil spill with potential social impacts off-site that are easily addressed and have no lasting effects. Minor environmental damage, but no lasting effect.
 Short-term economic displacement (e.g. loss of access to grazing land, farming land or fishing sites), resulting in short-term, Examples include but are not limited to:
reversible effect on income that does not affect quality of life.
 Nuisance from traffic, dust, noise, vibration, odour, that is easily addressed.  A small on-site spill with potential to harm the
environment that has no off-site impact.
 Local content: failure to include clauses in EPC contract in relation to local content delivery means delay of 2 months for local
 On-site groundwater contamination with no potential for
community suppliers whilst contracts are amended.
 Community health: transient health anxiety derived from perceptions of health risks due to elevated levels of traffic (nuisance) off-site contamination.
that are known to be temporary.  A single exceedance of statutory or other prescribed
limit.
Moderate Effect, examples: 3 Moderate Effect
 Unplanned: oil spill that affects community water resources, requiring substantial company resources to remedy. Limited environmental damage that will persist or require
 Unplanned: interference or injury to livestock or loss of a significant proportion of subsistence farmers’ harvest (e.g. oil spill, cleaning up. Examples include but are not limited to:
truck damage).
 A spill with potential to harm the environment that
 Failure to manage noise associated with increasing helicopter and aircraft traffic in the vicinity of a remote onshore supply
requires removal and disposal of over 100 m3 of
base, for an offshore facility, noise levels are regularly 6-9 dBA over previous baseline levels at a number of houses in the
impacted soil/sand.
local community.
 Measurable effects of local price inflation/deflation.  A spill with potential to harm the environment which
 Physical damage to a site, object or amenity of local cultural importance. reaches surface water off-site.
 Land acquisition and/or involuntary resettlement in which mitigation is poorly executed (e.g. delays in compensation), with  Off-site groundwater contamination.
potential health consequences (quality of housing, access to medical facilities etc.).  Off-site habitat and/or ecology effects or damage, e.g.
 Local content: Failure to deliver contracts to local suppliers due to onerous and complex contracting procedures, and, unable to fish kill or damaged vegetation.
rectify due to short construction period (e.g. insufficient broadband capacity to enable online applications).  Repeated exceedance of statutory or other prescribed
 Community health: health anxiety derived from perceptions of health risks due to effects of long term operations (e.g. Health emission limit for longer than 3 months and/or, with
Impact Assessment of long term effects of fracking in NY State) (note, can result in lost permits, capture under “Asset” and potential long-term effect.
“Community”).
 Community health: more difficult access to specialists (longer waiting times, inflated prices, etc.).
Major Effect, examples: 4 Major Effect
 Oil spill affecting community water resources requiring extensive company resources (e.g. large scale clean up and Severe environmental damage that will require extensive
compensation), complex and protracted to manage. measures to restore beneficial uses of the environment.
 Measurable effects of local price inflation/deflation, resulting in limited secondary negative effects, e.g. food shortage. Examples include but are not limited to:
 Recorded increase in crime and disorder attributable to company/contractor staff/presence.
 Allegations of human rights abuses resulting in multiple police investigations but no charges  A spill to water with potential to reach a shore and
cause harm to the environment. Off-site contamination of
 Damage to site, object or amenity of national cultural importance.
 Land acquisition and/or involuntary resettlement (dwellings or livelihoods) without appropriate compensation e.g. cash instead surface or groundwater over an extensive area.
of in-kind compensation for land based livelihoods in developing countries.  Requirement for Tier 2 oil spill emergency response.
 Local content: inconsistent delivery of benefits with regard to jobs and contracts in local community with high unemployment,  Off-site habitat and/or ecology effects or damage for
low incomes and political instabilities greater than 1 year.
 Community health: overwhelmed local health infrastructure, e.g. ambulances unable to meet demand.  Extended exceedances of statutory or other prescribed
 Community health: community wide perceived health risk due to land contamination, requiring significant mitigation, i.e. emission limits for greater than 1 year and/or with
company provision of life long healthcare (“Asset” and “Community” implications). potential long-term effect.
Massive Effect, examples: 5 Massive Effect
 Oil spill affecting regional water resources, with some significant, long lasting and extensive impacts (e.g. Loss of regional fishery Persistent severe environmental damage that will lead to loss
or loss through contamination of drinking water source). of natural resources over a wide area. Examples include but
 Destruction to site, object or amenity of national/international cultural importance. are not limited to:
 Land acquisition and/or involuntary resettlement (dwellings or livelihoods) without any compensation or livelihood restoration.
 Local content: failure to deliver sufficient local content benefits to comply with national legislation or to meet local community  A spill resulting in pollution of a large tract of wetlands,
ocean, part of a river estuary or beach/coastal habitat
expectations, leads to local conflict and a break down in social cohesion.
 Recorded increase in crime and disorder directly attributable to company/contractor staff/presence resulting in breakdown in  Requirement for Tier 3 oil spill emergency response.
social cohesion.  Persistent off-site habitat and/or ecology effects or
 Allegations of human rights abuses resulting in police investigations and criminal prosecution. damage with proven long-term effect.
 Community health: multiple fatalities and serious exposures due to leak of methyl-isocyanate, e.g. Bhopal.