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Developments during 2012
•• Structure The Group Risk Officer (GRO), appointed in 2011, is now fully integrated and has recruited a completely new team tasked with strengthening the Risk and Opportunity Management processes. The GRO reports to the Chief Governance and Compliance Officer (CGCO). •• Risk Team The Risk Team’s primary responsibility is to sustain efforts in defining and implementing appropriate Risk and Opportunity policies across the Group. They will also ensure that risk processes and tools are adequately developed, understood, and utilised. This has been effectively implemented with a strong focus on proposal and project execution being at the core of the Group’s business and that teams share the cultural positive attitude towards risks promoted by the management.
•• Risk Network At Execution Centre level, risk delegates have been assigned to the Finance Manager. They will support the Managing Director in his/her responsibilities for the management of Risks and Opportunities in his/her Execution Centre. For fleet operation Execution Centre (SBM PC), a Risk Manager has been nominated to develop and support the risk and opportunity processes across the whole fleet. •• Sponsorship During 2012, SBM Offshore joined the Engineering and Construction Risk Institute (ECRI). This gives the Group access to similar types of industry best practices, training, and peers networking for risk management activities. Training sessions facilitated by ECRI have been organised for employees in Houston and Monaco. These sessions will subsequently be extended to all other Execution Centres.
Cyril Dupre, Group Risk Officer
•• Quantitative and Qualitative Risk Analysis During 2012, the Group Risk Management Department achieved the implementation of a risk assessment process, both quantitative and qualitative, which can be applied at proposal and project levels. The Group has developed a methodology to quantify the impact of risks which may be included in a cost estimate (proposal) or managed throughout the project execution. This is a statistical method, based on the Monte Carlo simulation programme. The forecasts resulting from these simulations help in quantifying areas of risk, reducing estimated uncertainties, and establishing, with the project control team, the appropriate contingency levels during project execution.
SBM Offshore – Company Overview 2012