Principles of Corporate Governance Assignment

Running head: PRINCIPLES OF CORPORATE GOVERNANCE
Case Study: Deepwater Horizon
Name of the Student
Name of the University
Author Note

PRINCIPLES OF CORPORATE GOVERNANCE
1
Table of Contents
Introduction................................................................................................................................2
Different types of risk that Deepwater Horizon rig might be facing.........................................2
Risk Register for Mark Williams for using at the Deepwater Horizon rig................................4
Application of the information of the risk register.....................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................8

PRINCIPLES OF CORPORATE GOVERNANCE
2
Introduction
Assuming as the Chief Risk Officer of British Petroleum (BP) America, the following
investigation, assessment and application of information shall be carried out in order to
determine the risks that Deepwater Horizon rig faces in the Gulf of Mexico along with
registering the risks of Mark Williams, the chief electronic technician for Transocean so that
he could use it at the Deepwater Horizon rig. The risks registered for Mark Williams shall be
used and applied by the Chief Risk Officer of BP in order to refrain from repeating the
mistakes done by Mark Williams at the Deepwater Horizon rig.
Different types of risk that Deepwater Horizon rig might be facing
Most experts are of the opinion that an oil spill disaster is a result of several risk
management failure of the company that is majorly responsible for the entire operation of an
oil rig. The major blame for the disaster is mostly put on the company controlling the major
operation of the rig, thereby they are held liable to maintain and run risk management
procedures on the rig in order to ensure safety (Ingersoll, Locke and Reavis 2012). The joint
report by the Bureau of Ocean Energy Management, Regulation and Enforcement along with
the U.S. Coast Guard usually gives the scenario and reason behind the wrong decisions
undertaken by the oil drilling company that aggravates the risk as well as their failure to take
necessary actions to mitigate such risk (King 2010). The oil spill disaster of Exxon Valdez in
1989 should be taken as an example for complying with the risk management procedures,
which every company dealing with the drilling of crude oil should follow, including
Deepwater Horizon Rig.
Risks
Drilling in deep water is a huge risk that oil drilling companies take up, not only for
making a huge amount of revenue but also for providing crude oil to the world. Although