Risk management in projects; monitoring of performance indicators as element in the risk management process

Abstract

Throughout this master thesis a tool that has been developed and implemented in the risk module Statoil use will be presented. This tool is based on the use of KPIs, Key Performance Indicators. The tool has been developed for Quality & Risk Managers (QRMs) and other personnel that handle risk in Statoil on a daily basis. From the tool they get a good overview of how the risk picture in their project looks like compared to the performance indicators. Further, the KPIs give the QRMs information whether the requirements set to the risk management process are met or not. The KPIs are based on the parameters you find in the risk module. Some theory of why a tool based on Key Performance Indicators could be valuable for the risk management process will be presented. This theory is based on standards and governing document Statoil uses. We will look into how the tool allows the managers in having better control over a project and how they can use the tool for monitoring the risk management process, making it more efficient and concise. To get a good understanding of how the risk management process in Statoil works, it is beneficial to present theory on this process. This, together with some requirements for the risk management and the process, is presented in Statoil’s own governing documents. A selection of projects has been chosen to participate in a pilot project of the KPI tool. The participants have tested the tool over a 2 month period and given constructive feedback on their usage of the tool. Results from the pilot are presented and discussed in the master thesis.