Financial value creation and protection of people, the environment and material assets generally pull in the same direction, where good safety contributes to positive economics. Good risk management is intended to equip companies to find such good solutions for both financial value creation and for protecting people, the environment and material assets, and to strike a sensible balance between conflicting objectives for these aspects.

The document covers the following main points:

  • Risk management can only function as intended when integrated in the other decision processes.
  • Before decisions are taken, issues relating to health, safety and the environment (HSE) must be adequately identified. Uncertainty has to be taken into account.
  • Robustness is a key requirement because changes and surprises can occur.
  • Knowledge of, involvement in, commitment to and engagement with safety must be a core value. This must shape decisions in every part of the organisation.

This memorandum raises key issues viewed from our perspective – based partly on contributions from the industry. It’s meant to contribute to an improvement in industry practice, within the framework of today’s regulations.We’d urge the parties to make active use of its content, both internally in the companies and between them. Managers and decision-makers, in particular, should use the memorandum as a contribution to their risk management work,

...stated Bjørnar Heide, who has headed work on the memorandum at the PSA.

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