GRC aka Governance, Risk and Compliance is made so complicated in the marine oil & gas business, that we sometimes can wonder if the PhD’s, the MBA’s and the lawyers that seem to having a competion who is the best of them to make it complicated, as show-off of their competence and high level thinking, their corporate function of so ‘high’ cognitive level that it loose the intention of what it was meant to serve, risk control of the practical functions on the frontline of the activity in question.
How ‘high level’ is it if nobody in the front row understands what they mean or want?
We should utilize their expertise, but not let them run the show. Pratical people must run the show, not academics. That is the best risk control there is. This people in their ivory towers have completely lost focus of what is ijmportant or not. Seems like they believe the worekforce is there to serve them, and not opposite. After all it is always the workforce that is the primary source of income for any company, not the bureacrats.
Lawyers especially can not be thrusted to understand and relate to the marine business, if they do not have practical experience from the business they are useless. We have concrete case studies of 5-6 lawyers found no errors or crimes, when 11 – eleven – corruption indicators from UK Serious Fraud Office (SFO) was triggered, they could not even believe that according to the transparency requirements they should have an explanation of this 11 discrepancies. If you put a lawyer to investigate compliance in their own organisation, the result is almost 100% sure to be whitewash, that is their modus operandi. This is not a claim only. It is an experience from major international players in the marine, oil&gas industry. It can be documented.
By this reason alone it is better we do this kind of investigations, for executives and Boards that takes their responsibilities serious is the ones who will get the blame for the lawyers shortcomings if the shit hits the fan. It is them that will end up in trouble when the lawyers and the MBA’s is not able to do their job due to missing competency and practical experience in the field in what they operate and work in.
Everything have developed into a vacuum, where compliance and risk is an activity by those in their ivory towers, independant of the processes they are there to serve. They produce great acaemic papers, but most of what they do is of no real importance as long as it can not be implemented in the lowest levels of those who is doing the jobs, and therefore have no practical application. There is to many academics in the business with no practical experience, and than this issues will be only paper-exercises, as they do not know how to align it with the basic operations and tasks by the workforce that is actually doing the job.
We take our pride to be in compliance with all standards and laws, but interpreted in a way that is understood by all, and possible to have a practical application, and as real tools of the assorted risks involved, and have a real risk management.
By experience we have all witnessed how this have become a mere formal paper-exercise, to document compliance by generic application and adoption, but not actually as a living brainswashing tool to identify and assess the associated risks involved in any operation.
We will assist and see to it that the company’s risk management practise is fulfilling it’s purpose, and not only serve as an alibi as a tool for scapegoating, because if it is made so difficult that it is not possible to implement it, we have management failure if/when things goes wrong now and them. Words are only words, and show now competence OR compliance. Real competence is shown how successfull we are in implementing it, not just to academically theorize it and bureaucratic hazzle around it.
We focus on practises and solutions that is actually possible to implement effectively, by mariners for mariner.
In the next article in this series we document how it is against branch standard to place incompetent people in management positions, open up for negligence claims and even criminal litigations. Until now it have alway been the solution to sacrifice some in the front row, but as knowledge increase and science confirms than focus willl be shifted to the people in charge, and open up for a can of worms of negligence claims against the Company when things they have not anticipated and/or not implemented risk controls for due to lack of understanding and/or competence in our field. Things sometimes goes wrong, according to known science and rule of thumb is that 80% of incidents is by human errors, and 80% of this again is management errrors, the wise executives will of course seek our services in order that we minimalize the risk and chance for their company’s incompetent academics, the PhD’s, the MBA’s, and their inhouse lawyers, is leading them into severe problems by their lack of understanding of our business’ real challenges. Fogeting that the real risk involved is themselves, and their own incompetence, upen up for a series of negligence and misconduct claims.
We will highlight some case studies here in order to learn from some unfortunate lessons.