Importance Of Risk Management In British Petroleum

The term risk is employed in the description of the uncertainty or probability of the occurrence of an undesired and unforeseen event. The consequences, magnitude of the risk is specific to individuals and the activities they engage in. Risk management is defined as the identification, management and risk prioritization which is mostly preceded by the coordination and the application of monitoring economic resources, controlling of the probability of the occurrence of the hazard, which is all targeted towards the maximization of business opportunities. The source of risks is generally wide and it usually depends on the areas of operation and is mostly categorized as either external or internal. This paper will expand on assignment one which

British Petroleum was founded in 1908 as the Anglo-Persian Oil Company. From the humble beginning, the firm grew to be the largest petroleum firm in the United Kingdom and one of the largest in the world, employing over 100,000 people in the more than 100 countries. John Browne became the CEO since 1998 and was known for his willingness to a take risk and to pursue big deals. In reference to project size tool criteria, the $100,000 BP risk management project to be completed in three months will be categorized as medium risk management process. In addition, BP is a multi-million company with varied responsibilities; as such $100,000 project is standard activity in its business operation. We will use the standard ATOM process to help us determine the category of risk. The risk management process will include both qualitative and quantitative modeling. Quantitative risk analysis attempts to assign real and meaningful numbers to all the elements of the risk analysis process. These elements may include costs, asset value, business impact, threat frequency, safeguard effectiveness and exploit probabilities. When all of there are quantified, the process is said to be quantitative. In qualitative risk assessment the risk is measured against relative scales to determine the probability of a threat exploiting the vulnerability. British Petroleum medium risk process primary objective was to mitigate the risk for safety and security in the refineries as well as maintaining the company’s good