Reacción de esterificación en reactor discontínuo tipo tanque agitado

The Company recognises that efficient and effective risk management throughout its business and support activities must be a prioritised strategic objective.

The Company has developed Governance Risk and Compliance systems following the general principles and recommendation of ISO 31000.

The Company also recognises the importance of regular review, and ongoing improvement, of its risk management processes.

Risk Management Policy

The Company’s risk management principles are defined in a Group Policy which is part of SBM Offshore’s Group Management System.

The pyramid below represents the different levels of the Company (Operational, Management and Supervisory Board) demonstrating how risk management is enforced across the Company, with clear accountability. All individuals within the Company are fully accountable for the management of Risks & Opportunities (R&O) within their respective areas of responsibility. At Project, Department, Business Area and Group Level, R&O is tracked and managed by the respective authority.

The Process Cycle Risk & Opportunity circle illustrates the complete process of risk management commencing with identification and spanning assessment, response, monitoring and reporting.

This process has been made applicable across every level of the business.

Developments during 2013 Structure

The reporting structure that was put in place in 2012 remains unchanged, with the Group Risk Officer reporting to the Chief Governance and Compliance officer (CGCO).

Risk Team

In 2013, the Group Risk Team focused on training and developing the methodologies that were previously put in place, to ensure uniform understanding and adoption across the business, with the objective of propagating the appropriate culture.

Risk Network

At Execution Centre level, risk management responsibilities have been assigned to the Finance Manager. He will support each Managing Director in their relevant execution centre in in the management of R&O. However, for the fleet operation execution centre (SBM Operations), a dedicated Risk Manager supports the R&O processes across the whole fleet. In addition, on some major projects, a full time dedicated Risk Delegate has been assigned to assist the Project Manager.

Procedures

The processes developed to ensure consistent and systematic application of risk and opportunity management activities across the Company have now been tested, formalised and progressively implemented within the framework of the Group Management System. Some outstanding procedures and work instructions are under finalisation and will be issued by the end of the first quarter of 2014.

Group Risk matrix

A standardised risk matrix has been developed and is now enforced within the Company across all disciplines and activities.

The purpose is to ensure a consistent and systematic approach to any risk assessment that is performed in the Company.

The matrix is divided into 3 different areas: green, orange and dark orange areas to translate the risk tolerance level onto the matrix:

- Green: Continuous improvement. Can require the implementation of risk response. - Orange: Reduce risk. Should require the implementation of risk response.

- Dark orange: Intolerable. Must require the implementation of risk response immediately.

Severity and likelihood thresholds have been defined for different activities (e.g. Health & Safety, Environment, Security, Reputation, Information Technology, CAPEX, Schedule, OPEX) and constitute general guidelines to allow a qualitative assessment rather than firm a prescriptive limit.

Risk Appetite

Execution Centre and Group Function Risk Review

Reviews of individual execution centre and group function reviews are now performed on a quarterly basis by the Group risk management team, together with the management teams.

They aim to identify, assess, address and monitor Risks and Opportunities (R&O) and their associated response strategies within each execution centre or Group function. The output of such review is a detailed risk register and matrix illustrating the top risks and opportunities.

Quantitative and Qualitative Risk Analysis

The Group risk management team has developed and implemented a methodology to quantify the impact of risks which shall be included in an estimate (at tender stage) and managed throughout a project execution. This is based on the statistical Monte Carlo method. The forecasts produced from these simulations help to quantify exposure to risk, reducing uncertainties, and establishing, with the proposal and project control team, the appropriate contingency levels to be maintained during project execution.

Risk Aggregation

All risks identified throughout the Group’s activities are aggregated and classified in terms of impact and probability in order to maintain a global overview of the Group Risk profile.

Risk registers are updated on a regular basis for each proposal and project, and major risks and opportunities are reported through the weekly and monthly reports and dashboard to the management team. Similar reports are generated for each of the fleet units.

Developments for 2014 Risk Appetite

The risk appetite will be revisited on an annual basis to align with the Group strategy but the actual status of the Group risk profile versus its appetite will continue to be reported on a quarterly basis.

Business Continuity

A plan to review, update, test and maintain the existing business continuity plans in a more comprehensive and integrated manner will be proposed to the Management Board and is to be implemented in 2014.

Finalise risk processes within Group Management System

Any outstanding work instructions will be finalised and issued and, where necessary, previous procedures will be updated to reflect continuous improvements changes and feedback.

Governance, Risk and Compliance (GRC)

The Group risk team is actively involved and aligned with Odyssey 24, SBM Offshore’s transformation

programme, particularly in relation to the governance risk and compliance work stream and will participate in the development of the associated framework and tools.

Communication

A regular series of risk road shows will continue to inform managers and leaders in the main construction sites, shore bases and selected units of the fleet.

Training

Risk related training of staff across the Company will continue in various forms, including through the Group’s membership of the ECRI, external training sessions in specialist areas such as schedule risk analysis and quantitative tools, and internal training.

ECRI Review / Audit

It is foreseen to use the services of ECRI to conduct an external audit of SBM risk management framework in order to identify areas of improvements.

Risk Profile

The risks inherent in the Company’s core business activities did not change substantially during 2013, although a number of new risks were identified and ranked as shown in qualitative assessment matrix below. These include:

1 The potential costs of environmental pollution following events in the Gulf of Mexico have resulted in a tendency for the Company’s clients to try to allocate more potential liabilities for pollution to the Company. In general, the trend towards tougher contractual requirements has continued during 2013.

2 The ongoing compliance investigation into potentially improper sales practices may expose the Company to the risk of penalties or fines.

3 The Company is exposed to the industry wide risk overall shortage of competencies in the total range of skills required in the Company’s activities.

4 A strong focus on asset integrity aims at improving long term overall fleet safety and performance.

5 Transforming the Company may create uncertainty for some employees and may lead to detract their attention from assisting in delivery of the Company’s objectives.

The general nature of the risk categories confronting the Company and the way in which these are managed are explained below.