Risk in transit: a case study of the introduction of a new risk definition for risk management in the Norwegian petroleum industry

Abstract

In 2015, a new risk definition was presented by the Norwegian Petroleum Safety Authority (PSA-N) as a petroleum regulation update and ‘rolled out’ in the PSA-N organisation and the oil and gas industry as a regulatory guideline, changing the definition of risk from ‘the combination of probabilities and consequences’ to ‘the consequences of an activity, with associated uncertainties’. This article reports on research that explores the industrial effects of this change. We have conducted qualitative interviews with both operator employees and consultants, and we have undertaken a qualitative cross-sectional analysis, where we explored how the implementation of the new risk definition is experienced by different actors in the industry. The analysis draws on translation perspectives from institutional theory and focuses on the developments of theory and practice influenced by the interaction between the industry and consultancies, academia and the regulator. We find that the new risk definition has had some practical influence on risk management, particularly exemplified through a generally raised awareness about uncertainty, in addition to some direct effects on risk analysis tools. The study also demonstrates pros et cons with a functional regulatory regime. On one hand it gives the companies significant leeway for them to tailor their treatment and evaluation of uncertainty to the context. On the other hand, with different understandings of uncertainty among the companies, it is more challenging for the regulator to perform audits in a structured manner. Furthermore, the study sheds light on different power aspects that are at play, influencing the interplay between standardised definitions, legislative instruments, practice, experience, and expertise.