Corporate Risk Management in BP Plc

CORPORATE RISK
MANAGEMENT 1

TABLE OF CONTENTS
1. INTRODUCTION...............................................................................................................................3
2. RISK REVIEW.......................................................................................................................................3
BP’s Risk assurance................................................................................................................................3
BP’s monitoring of Risk..........................................................................................................................4
3. RISK COMMUNICATION AND CULTURE........................................................................................5
4. CONCLUSION.......................................................................................................................................7
REFERENCES............................................................................................................................................9

1. INTRODUCTION
BP Plc is British petroleum is United Kingdom based organization which deals in oil and
gas sector. It is one of the listed company of London, Frankurt and New York Stock Exchange.
Its market capitalization and revenue has made it sixth largest organization in industry. British
Petroleum company has wide operations in almost 70 countries which is able to produce around
3.6 million barrel per day. Organization has become able to open its 19000 service station that
has enabled it to earn more revenue. There are various internal problems that has lead to
ineffective risk management and indulged in several legal as well political issues.
Risk Management (RM) is process of analyzing and mitigating in order to derive smooth
functioning. In current era it is essential for all company to develop an effectual pattern for
monitoring risk of business environment. BP Plc failed to respond more accurately due to its low
concentration on environmental as well employment laws. Firm has not given emphasis on
planning at initial stage regarding disposal of hazardous substances, pollution control tactics,
chemical reduction, identification and evaluation of employees’ safety to decline accidents &
violation rate.
2. RISK REVIEW
BP’s Risk assurance
Risk assurance refers to the company’s accounting practices in order to continue its
operational activities with confidence through identifying & measuring prevailing risk. BP as
being one of the largest multinational organizations of oil & gas industry maintain crucial
process for risk assurance (Willumsen and et.al., 2019). In addition to this, company pay
attention on day to day assurance through quality assessment, mitigating & action plans for
significant operational threats. Incident investigation, OMS implementation, critical safety &
operation risk through developing competencies, etc are some the actions organization has taken
to maintain balance.
Its related with role of flow assurance in offshore operations of BP involves
communicating with assets teams with changing conditions. From the evaluation it can be
interpreted that focus of BP is on maximum production that reduces its capability in minimizing