The purpose of any risk assessment process is to identify potential hazards and develop measures to control or reduce the risk to an acceptable level. Petro-Canada’s Total Loss Management (TLM) system integrates operational reliability with the reduction of risk to people, the environment, assets, production and reputation. The TLM standards and supporting processes, including assurance, are applied using a risk-based approach. A consistent application of risk criteria and assessment is a critical decision-making tool for leaders to assign the appropriate resources to prioritize and reduce risks to an acceptable level. Risk assessment is helpful and, in some cases, essential to effectively implement TLM processes.

In 2008, the Company’s standardized Corporate TLM Risk Matrix, developed in 2007, was rolled out across the organization and integrated into the TLM processes. Detailed guidelines and online training in the application of the Corporate TLM Risk Matrix are provided to the functional experts who support the business in the day-to-day assessment and mitigation of TLM risks.

The Corporate TLM Risk Matrix supports all employees in assessing the TLM hazards across the full business life cycle and provides guidance in their decisions on how best to mitigate the identified risks. Together, rigorous application of the Corporate TLM Risk Matrix and documentation of the outcomes of risk assessments provide enhanced due diligence by the business in effectively managing risks associated with its activities.

The scope of the Corporate TLM Risk Matrix includes consideration of impacts on:

• worker health and safety;
• community environment, health, safety and lifestyle (including Aboriginal and Indigenous peoples);
• air, water and land receptors;
• regulatory compliance;
• the integrity of assets and operations;
• business continuity; and 
• the Company’s reputation