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Explorer Pipeline Services Company Risk Assessment Diagnostic Results
Explorer Pipeline Services Company Risk Assessment Diagnostic Results
Sectional Scores
Appendix
Velocity of Risk
5.45
4.67
Environmental Risk
5.29
5.93
4.87
5.51
Regulatory Risk
4.85
3.18
4.83
3.64
4.62
4.62
4.57
3.82
4.40
4.89
4.33
3.91
4.12
4.40
Aggregate Findings
Legend :
a Staff Bench Strength Risk
b Environmental Risk
c Catastrophic Loss Risk
d Regulatory Risk
e Succession Planning Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
5.54
1.15
5.00
1.69
4.86
1.80
Industry Risk
4.83
1.68
Commodity Risk
4.74
1.36
Impact Score
Likelihood
Score
Velocity Score
6.85
3.08
5.07
6.47
4.82
4.41
Industry Risk
6.11
3.94
2.55
5.95
4.36
2.75
5.87
3.67
4.23
5.68
2.62
4.88
5.38
2.90
3.20
5.29
2.39
3.61
Competition Risk
5.24
3.70
2.95
Regulatory Risk
5.09
4.13
2.42
Legend :
a Catastrophic Loss Risk
b Financial Health/Economic Uncertainty Risk
c Industry Risk
d Market Decline Risk
e Pipeline Product Capacity Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
6.85
2.07
6.47
1.59
Industry Risk
6.11
1.94
5.95
1.76
5.87
2.83
Impact Score
Likelihood
Score
Velocity Score
4.70
5.43
4.00
6.47
4.82
4.41
Commodity Risk
5.08
4.62
3.92
Compensation Risk
3.71
4.37
3.04
5.95
4.36
2.75
Regulatory Risk
5.09
4.13
2.42
Industry Risk
6.11
3.94
2.55
Leadership Risk
3.38
3.93
3.32
Competition Risk
5.24
3.70
2.95
5.87
3.67
4.23
Legend :
a Staff Bench Strength Risk
b Financial Health/Economic Uncertainty Risk
c Commodity Risk
d Compensation Risk
e Market Decline Risk
f Regulatory Risk
g Industry Risk
h Leadership Risk
i Competition Risk
j Pipeline Product Capacity Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
5.43
2.38
4.82
1.19
Commodity Risk
4.62
1.33
Compensation Risk
4.37
2.40
4.36
1.79
Likelihood
Velocity
Importance
Financial Health/Economic
Uncertainty Risk
Financial Health/Economic
Uncertainty Risk
Financial Health/Economic
Uncertainty Risk
Industry Risk
Commodity Risk
Compensation Risk
Financial Health/Economic
Uncertainty Risk
Industry Risk
Commodity Risk
Regulatory Risk
Industry Risk
Regulatory Risk
Leadership Risk
Competition Risk
Competition Risk
Competition Risk
Regulatory Risk
Commodity Risk
Compensation Risk
Overall Results
Sectional Scores
Appendix
Risks by Category
Impact of Risk
Likelihood of
Risk
Velocity of
Risk
Strategic Risks
4.91
3.48
3.15
Financial Risks
4.43
3.13
3.35
Operational Risks
3.86
2.96
3.29
Legal/Compliance Risks
4.01
2.27
3.24
3.69
2.42
3.59
Legend :
a Strategic Risk
b Financial Risk
c Operational Risk
d Legal/Compliance Risk
e IT & Systems Risk
Risk Velocity
Very Rapid
Rapid
Slow
Impact
Likelihood
Velocity
6.85
3.08
5.07
Competition Risk
5.24
3.70
2.95
Compensation Risk
3.71
4.37
3.04
5.29
2.39
3.61
Industry Risk
6.11
3.94
2.55
3.00
2.18
2.88
5.95
4.36
2.75
Pricing Risk
4.64
3.43
3.79
5.38
2.90
3.20
Regulatory Risk
5.09
4.13
2.42
Sovereign/Political Risk
3.88
2.00
2.00
4.70
5.43
4.00
4.05
3.27
2.71
16
Legend :
a Catastrophic Loss Risk
b Competition Risk
c Compensation Risk
d Customer Satisfaction Risk
e Industry Risk
f Investor Relations Risk
g Market Decline Risk
h Pricing Risk
Finance Leadership Exchange
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
5.00
1.69
4.86
1.80
Industry Risk
4.83
1.68
Regulatory Risk
4.50
1.56
4.37
1.24
Financial Risks
Impact
Likelihood
Velocity
3.64
2.55
2.67
Commodity Risk
5.08
4.62
3.92
Covenant Risk
4.79
2.64
3.64
Credit Risk
3.00
2.54
2.31
6.47
4.82
4.41
3.59
1.59
3.13
19
Legend :
a Budget & Planning Risk
b Commodity Risk
c Covenant Risk
d Credit Risk
e Financial Health/Economic Uncertainty Risk
f Segregation of Duties and Internal Control Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
5.54
1.15
Commodity Risk
4.74
1.36
Covenant Risk
3.36
1.30
2.88
1.83
Credit Risk
2.45
0.99
Impact
Likelihood
Velocity
Capacity Risk
3.36
2.91
2.73
4.00
3.61
3.52
Communications Risk
3.22
3.50
3.14
2.71
3.28
2.71
Efficiency Risk
4.00
2.36
2.79
2.90
2.19
3.35
Leadership Risk
3.38
3.93
3.32
Measurement Risk
3.06
2.35
2.50
3.82
3.43
4.16
4.00
2.65
3.05
4.75
2.87
4.29
Permitting Risk
3.56
2.94
2.64
5.87
3.67
4.23
4.78
2.22
4.11
4.18
2.47
3.27
4.11
3.00
2.88
22
Legend :
a Capacity Risk
b Change Readiness Risk
c Communications Risk
d Contract Information Risk
e Efficiency Risk
f Employee/Third Party Fraud Risk
g Leadership Risk
Finance Leadership Exchange
h Measurement Risk
i Outsource Provider Safety Risk
j Performance Gap Risk
k Physical Security Risk
l Permitting Risk
m Pipeline Product Capacity Risk
n Pipeline Reliability Risk
o Supply Chain Risk
p Team Satisfaction Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
4.53
2.10
3.59
1.44
3.53
1.45
3.41
1.66
3.33
1.56
Impact
Likelihood
Velocity
3.96
2.64
3.47
5.68
2.62
4.88
3.52
2.73
2.45
Governance Risk
3.63
2.50
2.72
3.71
1.22
2.50
3.54
1.64
2.90
4.06
2.39
3.73
3.96
2.39
3.30
25
Legend :
a Compliance (Regulatory & other) Risk
b Environment, Health & Safety Risk
c Failure to Act Risk
d Governance Risk
e Government Relations Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
3.77
1.60
3.00
1.38
2.94
1.73
Governance Risk
2.86
1.20
2.82
1.39
Impact
Likelihood
Velocity
5.04
2.75
5.05
2.95
2.47
3.31
Infrastructure Risk
2.93
2.65
2.50
3.85
1.79
3.50
28
Legend :
a Business Continuity Risk
b Information Access Risk
c Infrastructure Risk
d Network/System Failure Risk
Risk Velocity
Very Rapid
Rapid
Slow
Average Value
+ 1 Standard Deviation
Risks
Mean
Standard Deviation
3.53
1.31
Infrastructure Risk
2.73
1.28
2.50
0.79
2.44
0.79
Overall Results
Sectional Scores
Appendix
Approx. 1%- 5%
Approx. 6% - 10%
Approx.11% 15%
Likelihood of Occurrence
1-3
Low
Very Rare to Unlikely
4-6
Medium
Moderate
7-9
High
Possible to Likely
Velocity of Onset
1-3
4-6
7- 9
Low
Medium
High
Analysis Methodology
Ranking Calculation
To determine the ranking (for each category- Impact/Likelihood/Velocity) we calculate a simple average of the responses. For e.g., if we want to
calculate the Impact score for a Risk X and the number of responses are as follows : (total responses : 31)
In this case, the average impact score is as follows : ( 10*9 + 6*7 + 8*6 + 4*2 + 3*1 )/31 = 6.16
Importance Calculation
To determine the importance scores for each risk we calculate the square root of the product of the impact and likelihood scores of each
individual response, and then calculate a simple average of the responses.*
* The importance scores calculated as the square root of the average impact and likelihood scores may produce different results due to
difference in the methodology.