AAOM Handbook

SS.03 Identify Critical Areas

Context

The purpose of a Service Strategy is to identify the most cost effective way to manage risks related to a process. The objective is to deliver the safe, cost effective Functional Life required from processes that the Business is accountable for, or relies upon. Achieving this entails; • protecting people from harm, • protecting the environment from harm, • maintaining stakeholder support (investors, communities and regulators), • preserving the Effectiveness of the process, • preserving the Efficiency of the process, and • preserving the operational life of the process. It is not possible to produce a zero risk situation, hence, setting a Service Strategy must start with defining the level of risk that the stakeholders in any situation consider acceptable. The acceptable level of risk is shaped by many factors, and it is not equal for all people in every situation, and will change over time. Since it is not practical to eliminate all hazards, and produce a zero risk situation, it is sensible to be proactive in managing the most probable, and high consequence risks. Ranking processes, based on the likelihood, consequences and exposure of risks, will allow the set of critical processes (those where the risk posed is not acceptable) to be identified. This will allow service work to be focused on those areas where it will produce the greatest return.

Purpose

To rank the criticality of processes and operational risk for which a proactive Service Strategy should be applied.

Quantity

• One list of the critical processes.

• One set of data used to evaluate the Criticality Rating for each process.

• One number representing the Criticality Rating for each process.

• A list of significant operational risks and related priority unwanted events in terms of the Operational Risk Management (ORM) Baseline Risk Management process.

Quality

Two Pareto diagrams shall be produced showing the ranking of the Criticality Rating (described below) for all processes entries in the Business Structure