RISK MANAGEMENT BP

Risk Management- BP

Risk Management- BP

Introduction

British Petroleum (BP) is an integrated oil and gas company, providing customers with fuel, energy, lubricants and petrochemicals and also investing in renewable energy sources. British Petroleum is an international organization, which is operating in the oil and energy sector. There are sixteen refineries, which are partially or wholly owned by British Petroleum Company. BP has employed nearly 80,000 employees to perform its operations around the world. BP is operating in six continents, and its products and services are available in more than 80 countries around the globe. The products and services are available on the road, gas and fuel cards, gas and petrol stations, motor oil and lubricants. The company is headquartered in London (BP Annual Report, 2011, pp. 10).

British Petroleum is one of the renowned and largest oil and gas companies that deal in petroleum and alternative energy, and serve more than 13 million customers in over 100 countries across the globe. The company has a good reputation across the countries in the world. British Petroleum was formed in 1908 and was formerly known as The Anglo-Persian Oil Company. In 1997, BR repositions its strategy and emphasized on the threats of global warming. The alternative energy market is not much profitable as well as well-developed; however has the potential along with increasing environmental issues. The company identified this opportunity and penetrated in the energy market in 1973 (www.bp.com).

During 1920, BP has started its business operation and has its head quarter in Cape Town. Today, BP is the third largest oil companies in South Africa. The company has 553 branded service stations and 26 depots in South Africa. BP hold 50% market share of Petroleum Refineries at Reunion, in addition, also has 50% stake in the SAMCO (South African Lubricants Manufacturing Company). Moreover, British Petroleum offers employment to about 1,300 people in South Africa from diverse cultural and racial backgrounds (www.bp.com).

The focus of this paper is on British Petroleum (BP), Risk factors that are being faced by the company. The objective is to assess and examine the current risk and challenges faced by BR. In order to so, the study gives a clear risk management technique which is being followed by BP, and provides those preventive measures which elaborate tools of mitigating those risks. However, the study also Undertake a stakeholder group analysis in respect of these risk exposures.

Aim and Objectives

The aim of this research study is to explore the effect that British Petroleum has over achieving its business and financial objectives. The below mentioned are the objectives have been formulated in order to meet this aim of this study.

1.To explore the risks faced by British Petroleum.

2.To assess and undertake the group analysis of the stakeholders in order to measure risk.

3.To explore the risk management techniques used by British Petroleum.

Business Model

The business model of British Petroleum is for creating the value across the entire value chain of hydrocarbons which initiates with exploration and ends with products and energy supply along ...