Hsse

A 01 Finding Assessment and Evaluation Criteria

Each finding in section 7 above is assessed based on the risk level from the Risk Assessment Matrix (see Figure 1 below).

Figure 1: Excerpt from the Risk Assessment Matrix Shell Yellow Guide (2006)

Serious : The finding is likely to cause a high undesirable effect on the achievement of the entity’s (HSSE) objectives and / or is likely to have a notable impact on other Group entities, therefore warranting immediate reporting to senior management.

High: The finding is likely to cause a high undesirable effect on the achievement of one of the entity’s (HSSE) objectives.

Medium: The finding is likely to cause a measurable undesirable effect on the achievement of one of the entity’s (HSSE) objectives.

Low: The weakness is unlikely to have a measurable undesirable impact on the entity’s objectives, but its correction would enhance the risk based control framework or aid in the achievement of objectives.

Rating of the audit opinion was in accordance with the Shell internal Audit (SIA) Methodology (2006) - see Figure 2 below , HSE Auditing Guidelines (2001), and EP2005-0180 Specification SP-02, Findings Assessment and Evaluation Criteria.

| |IMPLICATIONS |SCOPE OF CONCERN |EVIDENCE |

|GOOD |There is no desire/need to take more or less |Confined to very few specific areas. A |The framework is designed to |

| |risk, therefore no additional actions or |fit-for-purpose risk based control |provide reasonable assurance of |

| |resources are needed to alter the framework. |framework is in place. |achieving business objectives. |

| |Continue to maintain and adapt the current | |The framework is resourced |

| |framework. No follow up is required by the | |appropriately and...