Risk Management and Innovation in BP PLC

RUNNING HEAD: RISK MANAGEMENT AND INNOVATION 0
bp plc
Innovation and Risk Management
Risk management and innovation
7/3/2018

RISK MANAGEMENT AND INNOVATION 1
Executive summary
The significance of the Mass Mutual and its increasing market is stated in this study. The
analysis also covers the Pinwheel rotation procedure and its applicability on the BP PLC,
which is a leading Oil, and Gas Company. The study also shows applicability of action
framework of Pinwheel risk management on BP PLC. The risk management framework is
studied by using Pinwheel framework in general and in the context of BP PLC. It also helps
in assessing the performance by monitoring it. The role of strategic risk management is
explained in the implementation of the innovation successfully. This helps in analysis of the
risk and then selecting the best measure to mitigate the risk. This follows a process to
mitigate the risk, which is explained in the below study.

RISK MANAGEMENT AND INNOVATION 2
Contents
1. Introduction.......................................................................................................................................3
1.1 Introduction of Mass-Mutual...........................................................................................................3
1.2 Introduction of BP plc......................................................................................................................3
2. Pinwheel rotation procedure.............................................................................................................4
3. Risk management Pinwheel action framework to BP plc...................................................................7
4. Systematic risk management’s role in the implementation of successful innovation.......................9
5. Conclusion.......................................................................................................................................11
6. References.......................................................................................................................................12

RISK MANAGEMENT AND INNOVATION 3
1. Introduction
1.1 Introduction of Mass-Mutual
Mass mutual was founded in Springfield Massachusetts, in 1851. It runs its operations for the
benefit of its policy owners and members. With over $600 billion of asset under management,
it is a member of health provider and owned life of global scale in Fortune 100. During the
financial crisis of 2008/2009, Maas Mutual came stronger than many competitors and peers.
The employee strength of Mass Mutual is 10,614. However, the new CEO was convinced
with the experience and board decided to introduce more formal governance strategies
around, including improvement in alignment and greater transparency. It developed between
process of strategic planning process and financial planning. The introduction of BP plc a UK
based Oil and Gas Company, rotation of Pinwheel and the applicability of Pinwheel rotation
on BP plc is described (CGMA, 2014).
1.2 Introduction of BP plc
BP plc previously a British Petroleum company, is a multinational company of Oil and Gas
headquartered in London. Earlier it was world’s seventh largest oil and gas company, but it’s
performance in the year 2012 made it sixth largest Company in the world by its market
capitalization (BP, 2013). It ranked 12th with its revenue and is integrating in all areas of Oil
and Gas industry vertically. It includes refining, exploration, distribution, production, and
marketing. By the end of 31st December 2017, the operation of BP were running worldwide
in 70 countries, and barrels of around 3.6 million produced per day equivalent of oil. It had
18.441 billion barrels in total of reserves equivalent to oil. The company owns around 18,300
service stations (Kerzner and Kerzner, 2017). The largest division of the company is BP
America in United States. In Rosneft, BP owns 19.75% stakes; the world’s largest trading