"I was involved in the first USA Refining Issues Forum and have continued to participate in it to this day because I find them very valuable. The ability for the leader of each company's refinery EHS organization to have a discussion about the various EHS issues, problems, practices and performance topics that we want to talk about is extremely valuable. The agenda is our agenda and not driven by an industry organization. I also participate regularly in E.Vironment's Chemical Global Issues Forum for the same reasons."
Michael P. Gallagher
H&S and Management
Shell Oil Products USA
Every operating company is concerned with protecting itself against catastrophic EHS losses that could jeopardize the company's future or competitive position. Some companies, because of their size and financial strength, are in a position to take very large risks and in many cases to self insure. Smaller companies need to adopt a different risk management strategy that reflects the company's size, capital position, products and assets. Self insurance is not generally an option for smaller companies.
Risk management is a continuous process of identifying loss exposures, measuring them against the firm's ability to withstand the exposures, and then handling them with the appropriate control, transfer, and financing techniques. There are five phases of an effective risk management process: 1) risk identification, 2) risk analysis, 3) risk control, 4) risk financing and 5) risk administration.
Developing an EHS risk management strategy must be a cooperative effort between EHS, OPCO's, businesses, risk management and engineering, and it must follow risk tolerance guidelines established by senior management.
The EHS function often takes the lead in the first three phases of the risk management process (risk identification, analysis and control), and supports the Risk Manager and others as needed in risk financing and administration.
Typically Business Risk Profiles are developed for each business, and BU's develop control strategies for identified risks. EHS and OPCO's conduct risk audits and self assessments and report results to senior management and key stakeholders.
The collapse of Enron and the subsequent passage of Sarbanes-Oxley (SOX) has dramatically & permanently changed the meaning of corporate governance in public companies. Senior Executives and Directors are held to a higher level of diligence individually and collectively. E.Vironment has assisted many clients with understanding the implications and requirements of SOX and related issues such as FASB 143 and SOP 96-1. Services we provide to clients include:
- Conducting audits to assure compliance and consistency with requirements and guidelines
- Identifying and evaluating existing company and business unit SOX-related policies, procedures and practices
- Developing plans for implementing an initial SOX strategy
- Defining the respective roles of accounting, legal, business, manufacturing and environmental