Risk Management in Shell Inc. Firm | Study

Running head: RISK MANAGEMENT IN SHELL INC. FIRM 1
Risk Management in Shell Inc. Firm
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RISK MANAGEMENT IN SHELL INC. FIRM 2
Introduction
Risk analysis mainly refers to the identification of any incoming factors that
hinder the progression of the firm. In a firm, the process is very useful as it attributes to
making of a necessary decision on the activities of the association. Managers mainly use
the report regarding risks noted and make a viable decision concerning the process of the
organisation. At the same time, the business managers and the stakeholders look for a
means of minimising or even eliminating the risks in order to be successful. In this essay,
the major emphasis is based on risk identification as well as ways of mitigating the risks
(Hansen & Uldam, 2015). To be effective in analysis of the risks, the essay entirely looks
into the risk analysis and evaluation of both internal and external risks and offers the
mitigation measures taken by one of the famous firm known as Shell Inc. firm.
Looking at the structure of the paper, it is clear that the sections are clearly and
systematically arranged. In this connection, there is a brief overview of the firm, risk
audit, critical evaluation of both the internal as well as external form of risks, risk
mitigation measures while citing various risk management models together with
associated concepts (Horner & Wilmshurst, 2016). Finally, the essay summary, together
with the recommendations, is outlined. All the section mentioned in the above section is
very useful for the essay and offer clean details for the paper in general. They usually
help other organisations learn several ways through which they risks can be controlled in
any given firm.
A brief overview of Shell Inc. firm
The Royal Dutch Shell Group was made in 1907 April through the merger of two
rival associations: the Royal Dutch Petroleum Company of the Netherlands and the Shell
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Transport and Trading Company Limited of the United Kingdom. It was once a
transition, as it were, pushed via the need to conflict all around with Standard Oil Gupta,
I., Raiz, M., Bhattacharya, S., (Bhargava & Daga, 2015). The "Shell" Transport and
Trading Company (the statements have been a bit of the felony name) used to be a British
association, built up in 1897 by means of Marcus Samuel, first Viscount Bearsted, and
his kinfolk Samuel.
Shell has been facing some challenges in the operation as there is a big change
that occurs in the world. Further, the firm has been faced with the internal theft from the
workers. To solve the mentioned challenges, there has been the installation of CCTV
cameras that tends to observe all that is happening within the organisation. Shell faces
some money-related challenges due to higher controlling costs for oil spills and ousting
contamination (Gvenetadze, 2017).
For a variety of reasons, the new company functioned as a twofold recorded
association, whereby the mixing associations saved up their criminal nearness, but stuffed
in as a single unit relationship for commercial enterprise purposes. The factors of activity
of the merger gave 60 per cent responsibility involving new assembling to the Dutch arm
and 40 percentages to the British (Zhang et al., 2018).
Risk Audit
The firm has been facing some challenges in the operation as there is a big change
that occurs in the world. The risks within the firm can be categorised as either internal or
external risks. The internal risks are the risks that emanate from the firm whereas the
external risks are the risks that affect the business but usually originate outside the firm.
In Royal Dutch Shell Company, the two forms of the risks are witnessed and are going to
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critically be addressed in the section below. Meanwhile, it is important noting that the
risks are controlled within the firm using various measures. In accounting, there has been
a challenge with the coming up with the effective records an issue that has attributed to
the firm managers with the help of IT managers come up with the automated system for
keeping and analysing records (Niehaus, 2017). The above serves as the internal risk of
the firm in terms of audit. Meanwhile, the firm has been faced with the internal theft from
the workers. To solve the mentioned challenges, there has been the installation of CCTV
cameras that tends to observe all that is happening within the organisation.
With the External form of risks, there are some risks that are associated with the
firm. The external forms of risks that are witnessed involve malware activities based on
the fact that the firm is popular and operates within a large region (Markman & Krause,
2016). From the research, it has been noted that the firm has been attacked several times
and due to such, the managerial team, IT managers and the stakeholders have taken an
initiative of integrating the operating system so as to free itself from any form of the
cyber insecurity. At the same time, it has faced great competition from other firms that
offers a similar product and services as it offers. Due to such, the firm has ended up
coming up with the digital marketing campaign whereby there has been an increased
form of strategies so as to capture a large number of customers. The above has resulted in
an increased number of customers in the system leading to a faster growth rate of the
firm.
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