Comprehensive Risk Management Report: Shell Inc. Firm

This report provides a comprehensive analysis of risk management within Shell Inc., examining both internal and external risks. It begins with an overview of the company, followed by a risk audit that categorizes and assesses various threats. The report then delves into a critical evaluation of these risks, including internal challenges like accounting and theft, and external threats such as cyber security and competition. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report details the mitigation measures implemented by Shell Inc., such as the use of digital marketing, website development, customer interaction tools, and wearable computing for cyber security. The report also touches on the implementation of a centralized system for risk oversight, providing a holistic view of the company's approach to risk management.

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Risk Management in Shell Inc. Firm
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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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Critical Analysis of the Internal and External Risks
The case study in the essay is on the customer's sector whereby the region has
made a great effort from the time in the memorial. From the previous report based on the
sector, it is clear that the region is the second-largest customers’ attraction firm and offers
great services to customers. From the research done, the region has the possibility of
becoming an attractive leading firm for the Netherland (Eccles & Krzus, 2017). The reason
behind such is that the sector has not been using the effective digital marketing strategy.
Based on this, the region has entirely depended on facebook gaming as the most common
strategy for attracting more customers within the firm. Due to the application of only the
mentioned strategy for attracting customers, it has ended up not standing a chance to
attract as much tourist as it is expected (Peruzzini, Pellicciari & Bil, 2018). Due to the
high competition imposed to the town by the other customer’s site, there are high chances
that the firm would lose its standing position in terms of attraction of customers (Epstein,
2018). Owing to such, there is a need for developing digital marketing Campaign in the
region based on the customer's segment. For the firm to retain its position as a second
leading firm in terms of the customer's attraction, there is a need of keenly analysing
communication channels as it is the key strategy in the promotion of the customers
market segment.
SWOT Analysis
Strengths
Quality of Shell is that it has a strong market position in different zones,
(Uzcategui, Mathison and Soto, 2015). It fills in as the critical nature of Shell Netherland
since it is helping the association to have vertically joined assignments which mean it is
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getting other little/medium-sized associations. Thus, Shell can achieve their
supportability destinations in imperativeness part through another strategy (Shaw &
Donovan, 2019). For example, Shell Inc starting late put assets into a couple of dares to
build charging stations for electric vehicles over Europe's interstates. The association's
pay is itself stunning ($29 billion out of Netherlands economy as evaluations and sways.
To the extent brand worth and market reach, Shell has been produced to keep up its
stature. It has one of the longest-running associations with Scuderia Ferrari which began
during the 1930s is so far faultless. Shell was moreover allowed as the best in
development and headway at 2018 Nigeria Petroleum Summit (Shell, 2018).
Weaknesses
Shell Dutch firm has been included by a couple of discussions related to human rights
and regular crisis (Abdelrehim, Linsley & Verma, 2017). Its ethical arrangement of
acknowledged standards has been prime stress in Netherland. These charges have done
simply a terrible memory to Shell's reputation. In the locale, Shell is gaining some hard
experiences keeping up a sound relationship with the regular society (Badri, Boudreau-
Trudel & Souissi, 2018). There have been a couple of complaints starting late over oil
spills and outrageous usage of typical resources. The association has been reprimanded
over their approach to managing deal with those discussions. Debasement among the
delegates and government body is another factor that has been upsetting Shell
consistently.
Opportunities
Shell in Netherland has reliably been strong and driven towards inventive work.
Its arrangement of cleaner essentialness future is joined by other related targets, for
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instance, building sensible urban networks, placing assets into vaporous oil and
reasonable imperativeness sources (Eccles and Krzus, 2017). The parent association Shell
Inc has essentially increasingly broad locales to serve rising world imperativeness
demand. In the hour of 2017, Shell has set up Cardamom oil and gas field in the
significant waters of the area.
Threats
The threats of an association are continually under minuscule appraisal of government
and basic culture. Shell firm has quite recently stood up to court primers under
encroachment of human rights which is making harmed its overall picture. Basically,
Netherland's erratic imperativeness market and its organisation's uncertainty and
nonattendance of straightforwardness over their high worth courses of action can
moreover drag Shell Netherland down (Lawrence, 2017). Change in approaches and
normal laws are another stress for Shell firm. Shell faces some money-related challenges
due to higher controlling costs for oil spills and ousting contamination (Gvenetadze,
2017).
On the other hand, the contention is reliably growing in the overall market as its top
opponents like Exxon and HP persistently want to expect power over oil and gas feature
from Shell in Netherland. At the same time, oil thievery has been an issue for Shell for a
long time (Iglesias, 2015). Neighbourhood lobbyist gathering is taking the oil anyway,
cutting the pipelines and illegally unloading the crude oil toward the ocean in an overall
market.
Measures Taken to mitigate risks
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Concerning measures taken, it has been found that digital marketing is the mode
through which the firm has attained popularity in nature. In the process, it has hired IT
information that has enabled it to come up with a platform that allows it to reach as many
customers as possible (Hennchen, 2015). In this connection, it has come up with the
website where it advertises the products and the services it offers to the clients
(Lawrence, 2017). The additional services it offers are also included in the website.
Moreover, there has been an added customer-clients' interaction slot at the Conner of the
website. In this chat slot, the customers, as well as the visitors, clearly interact with the
firms' attendants. Due to such, customers and visitors freely interact with the customers'
attendants.
Following such, the customers are attended at a faster rate an issue that has made
several individuals be a potential customer of the firm (Vermeulen, 2015). At the same
time, their queries are attended timely, and thus they end up feeling appreciated in
general. In the view of the cyber insecurity, there has been an integrated system within
the firm whereby an application of the current technological advancement has been
looked into. The current technological system deployed involves an application of
wearable computing. The managerial team is equipped with wearable devices such as
wristwatches and phones that connect directly to the system (Lawrence, 2017). Any form
of intrusion to the system sends a form of the signal to the wearable devices leading to
taking necessary action to prevent the attack.
On top of such, it has also been noted that the system within the organisation is
centralised. The top managerial team usually oversees all that is happening in the other
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sectors within the region. The supervision of all what is happening in different
departments is easily noted from the top office.
In order to be successful in such, the firm has ended up facilitating the process
through hiring IT managers who are task with the integration of the system. Meanwhile,
the managers are expected to be taken to seminars where they would learn new ways of
identifying any change in the technology (Gaudenzi, Confente & Christopher, 2015). The
reason behind such is that technological advancement has greatly affected business, and
all the businesses are supposed to be keenly observant of technological changes. In cases
where the business does not take keen caution of the technological changes, there is a
high chance of not retain its position in the current market share (Lawrence, 2017).
Nevertheless, there is an issue regarding observation of the market trends whereby the
managers in the organisation are supposed to have knowledge concerning the
identification of the current market trend. Looking at the firm discussed in the paper, it is
clear that the managers especially the sales manager is on the toes to the identification of
the market trends.
Appropriate Risk Management Concepts and Models
Risks can be dynamic and complex, making it necessary for Shell to assess every
possible aspect of the risk using result oriented concepts. The concept of integration of
risk into decision making is essential. Safety hazards constitute a risk that puts the lives
and physical health of the employees at risk. The risk assessment informs the strategy for
mitigating the risk since it is used as the basis for developing a comprehensive risk
mitigation plan. Shell should research comprehensively on the safety vulnerabilities in its
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workplaces. It could also have in place a wellness and safety plan which covers all levels
of employee health and safety.
Risk mapping in shell should ensure that proper categorization of the risks are
addressed (Gaudenzi, Confente, & Christopher, 2015). At the employee placement stage,
Shell could carry out pre-placement physicals and ensure that each employee is posted in
areas that match their physical abilities. Routinely monitoring safety measures is also a
critical practice, and this includes providing physical protection equipment which Bechtel
is already practicing. Therefore, mitigating the risk of safety hazards requires a
multifaceted approach, and this is something that Shell needs to consider going forward..
It is crucial to conduct a proper quantity survey to ensure that the quantity stated for each
raw material for the project is right, as well as to track the changes in the prices of
materials from time to time.
Summary and Conclusion
Based on the above information, it is clear that Shell Inc. is one of the firms that
are geared towards the success of the firm. The changes that have been made in the firm
has attributed to its fast growth rate within the entire firm. It has resulted in the firm
attaining all forms of popularity in the region and individuals have stood a chance to offer
satisfactory services to the clients. Customers, in turn, have ended up becoming potential
customers and loyal to the firm. The reason behind such is that the customers' attendant
uses an appropriate strategy to communicate to the customers until customers are fully
satisfied in terms of their needs. On the other side, the customers are required to rate the
attendants in the chatbox regarding the services offered to them by each and every
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customer attendants. This is one of the modes through which the top managerial team to
examine the services offered to the clients.
In conclusion, the management system of the risks in the firm is effective enough.
Various organisations are following the footstep of the firm as it is one of the firms that is
leading in the region in terms of the innovations. It is therefore important for the firms to
be key determinants in terms of the innovation in general so as to survive in the current
market.
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References
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Badri, A., Boudreau-Trudel, B., & Souissi, A. S. (2018). Occupational health and safety
in the industry 4.0 era: A cause for major concern?. Safety Science, 109, 403-411.
Eccles, R. G., & Krzus, M. P. (2017). An analysis of oil & gas company disclosures from
the perspective of the task force on climate-related financial
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Epstein, M. J. (2018). Making sustainability work: Best practices in managing and
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Gaudenzi, B., Confente, I., & Christopher, M. (2015). Managing reputational risk:
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Gupta, I., Raiz, M., Bhattacharya, S., Bhargava, S., & Daga, S. (2015). Comparative
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