This is a key step in driving decision making and where risk management comes into play. There are opportunities to be taken, mitigation actions that need to be done, actions that affect growth and actions that reduce risk. All encompassed in the real world of funding. Context is important so that the playing field of all these points of view can be smoothed and effective decision making developed.
“We prioritise actions by integrating growth and vulnerability…Making growth sustainable and making investments timely”
There are two axis’s to work on when it comes to context and prioritisation. How much value is being created by the action and how the level of risk is being reduced by the same action?
Value creation – value capture. Through support of the controlling department we can establish the action value and the KPI needed to show EBITDA Impact. These values are aggregated to show overall impact to the bottom line.
For the risk mitigation actions we align with the onepager to reduce the burning cost and leakage of the asset base today. Stabilizing production
Coordinated, knowledge capture and innovation enables growth targets to be established and stretched targets to be achieved.
The value driver trees again become important is establishing which actions impact frequency of incidents the most. Which barriers are strong hard barriers, like computer controlled interlocks, as opposed to weak soft barriers such as procedures and single event focused actions.
Collaboration with you enables us to fine tune the approach to investment management to your appetite, high burning cost (EBITDA Leakage) reduction or high impact (severity) scenarios first.
The decisions being made, and supported by HERA, at this stage are to go deeper into the project portfolio defined by the scope we have set. Establish a company strategy to reduce the level of vulnerability, create stability and induce growth.
A wave of actions is now being defined and valued and will be measured by setting company targets and initialising investment protocols.