Risk Management

Occidental's Health, Environment and Safety (HES) risk management program provides a consistent and rigorous methodology to help the company identify and assess safety, environmental, social and operational risks across all areas of business operations.

For decades, Occidental has required implementation of HES risk management policies, standards and procedures at all operating locations and levels of the organization to identify, prioritize and apply feasible risk mitigation options. The company's Risk Management Community of Practice leverages the collective expertise of the company's risk engineers to share opportunities for improvement. Higher-level risks are reported through the management chain of command, validated and acknowledged by business segment management and reviewed annually with members of the Board of Directors, assuring that HES Risk Management is among Occidental's highest priorities.

Facilities and operations covered by the risk management program:

  • Process (plants, fields and pipelines)

  • Drilling and well servicing

  • Transportation (ground, air and marine)

  • Security (threats with potential HES consequences)

Consequences evaluated:

  • Impacts to people inside and outside facilities and fields 

  • Environmental releases and habitat impacts

  • Property damage

  • Impacts to production that can lead to loss of revenue

Occidental strives to continuously enhance its risk program, including the design and implementation of:

  • Drilling and well servicing risk management program

  • Critical Mitigation Element (CME) methodology, which provides management with consistent and reliable risk evaluations

  • A quick and reliable risk screening and evaluation tool

  • A risk database for monitoring risk inventory, and risk mitigation plans at each organizational level

  • For oil and gas operations, a Specialized Field Risk Management Program