The paper 'Business Risk Assessment for BP Company" is a great example of a management case study. Oil companies present a group of business entities that have major risks than most of the businesses. These companies process crude oils to produce fuels that are the source of the power of other businesses. Oil companies explore and produce fuel through refining as well as marketing petroleum products. On the other hand, this sector manufactures and markets gas, chemical, and generates power since it also manufactures Photovoltaic cells. The oil sector of the economy accounts for about 13.3% of FTSE and BP has been a major player in the UK’ s oil sector (BP Global 2014).
BP sits in the top three as a global gas and oil company and operates in areas like Europe, Asia, Africa, Americas. Oil companies have considered risks to the safety of the oil miners, the environment, and public health in general. Therefore, it is imperative to carry out an extensive corporate risk assessment on such companies for the benefit of their business operations (Wilson 2012, p. 2012).
For example, oil companies have been associated with gas leaks, oil spills, and industrial disasters that have destroyed the environment in some instances, claimed lives, and increases global warming. These risk situations escalate when appropriate measures are not taken to mitigate the risks. Briefly, this paper provides a comprehensive risk assessment on the UK’ s Bp oil company with the scope majorly on its headquarters in London. The industry has different sections and subsections that give this report the opportunity to assess the risk by looking at the risk-prone areas. For a proper organisation, the paper first gives an overview of the BP oil company and its global operations as well as looking at its business operations.
Thereafter, the report uses various tools or methodologies of business risk assessment to evaluate the risks of this company (Wold & Shriver 2014). For any risk assessment, it is vital to first look at the SWOT and PESTEL analysis that gives a background on the company’ s risks and opportunities (Ahmed Kayis & Amornsawadwatana 2007, p. 24). On the other hand, the paper also refers to historical risky events that BP oil has undergone that helps in classifying and ranking risk events using the F-N diagram that gives the potential of hazardous situations.
The report also gives a deeper risk assessment by using such tools like Fault tree, event tree, cost-benefit analysis, a tick list among others. Finally, the report ends with fixed budget allocation for mitigation each risk situation and concludes by comparing the effectiveness of the above tools used in risk assessment.
Ahmed A, Kayis B & Amornsawadwatana, S 2007, ‘A review of techniques for risk management in projects’, Benchmarking: an International Journal, vol. 14, no.1, pp.22 – 36.
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HSE 2014, five steps to risk assessment, viewed from
Mother Jones September 2010, BP’s Damage Control: A timeline. BP’s Deep Secrets, viewed from http://www.motherjones.com/environment/2010/08/bp-ocean-timeline-damage-control
BP Global 2014, viewed from
The guardian Thursday 22 July 2010, BP oil spillage timeline, viewed from
The Telegraph 15 Nov 2012, A history of BP’s US disasters, viewed from
Wilson, R 2012. The Development of Risk Analysis: A Personal Perspective. Risk Analysis: An International Journal, vol. 32, no. 12, 2010-2019.
Wold, G.H & Shriver, R 2014. F Risk analysis techniques, DISASTERS RECOVERY JOURNAL. Online, viewed from < http://www.drj.com/new2dr/w3_030.htm>