Systemic management failures results from a gap in communication effectiveness, goals, and behaviour between the “field operators” and “corporate office”. Operations focus on a specific list of criteria addressing operational issues perceived through past and offset experiences; meanwhile, corporate is focused towards commercial risk.  The tension between these groups are complex, as are the diversity of their goals, but time and budget dominate in all cases. 

Sophisticated models are used to define resource value where operational risk due to geological complexity tends to be resolved with “group think” and “probability”. Moreover, the interrelation of operating parties incorporate regulations, mixture of leadership styles, ego driven personalities, self-sufficiency perceptions, and a range of political ideals; generating a culture that causes loss of definition on best practices in the decision making process. This cultural issue in the front end of business decision making must be addressed to prevent and avoid catastrophes.

The presentation will be illustrated with examples of the author experience and public information
related to the BP Macond disaster, and to a lesser degree, Montara where geological hazards are similar.