Management Systems

Management systems and processes are the means with which we monitor and control the implementation of our business strategies and policies. In the past two years we have strengthened fundamental systems, including risk management, operations, stakeholder engagement and environment, and health and safety (EHS) auditing, which will help ensure that we continue to operate our business safely and with integrity.

In 2009 we strengthened the following systems. These are discussed in more detail in the relevant sections of the report:

• Risk management. We use a risk-based approach throughout our management processes. By the end of 2009, we had essentially completed an 18-month project to analyze risk enterprise-wide. In addition, we expanded the use of a risk assessment matrix from our environmental health and safety system throughout the organization, including ethics and compliance and operations management.
• Operations management system integration. Our Operations Performance Assurance (OPA) framework enables the systematic management of operations performance by integrating and driving optimization of existing processes and by providing assurance to senior management and the board that compliance and risks are being managed.
• Stakeholder engagement. During 2009 we established corporate-wide principles for engaging with stakeholders, and we assessed and improved our engagement processes.
• EHS auditing. We implemented an environmental, health and safety audit program in 2008 that encompasses all asset types (e.g., transmission systems, compressor stations, gas processing facilities, gas storage, and distribution systems) and includes both business unit self-assessments and corporate audits.

We continue to focus on building out these systems and making them more robust, interconnected and consistently applied across Spectra Energy.