RISK MANAGEMENT PLAN

Risk Management Plan for an Area of Work Environment

Risk Management Plan for an Area of Work Environment

Introduction

Risk management plans in organizations are created to cater the occurrence of potential risks that would cause harm and loss to the organization. In case of Saudi Aramco the main goal of the RMP is to provide a risk management system to be utilized by the staff as well as the management that are involved within Saudi Aramco and to provide necessary information regarding the risk management practices to the regulatory authorities which can be implemented by the organization in future aspects. Overall the Risk Management Plan is based over the following objectives (Van, 2011).

To show the mitigation measures that would be implemented in all phases of projects done by Saudi Aramco.

To identify the principles and policies are would be put to make sure that the mitigation measures that are proposed are applied and are efficient as well as necessary arrangements that would be implemented if unforeseen risks arise.

To show the risk management programs that would be applied to manage the predicted risks, validate the performance of the measures and to enhance the protection strategies.

To show the resources that would be made available to include the recommendation of necessary training and staffing requirements for Saudi Aramco

To explain the arrangements that will be put in place for consultation and participation of interested and affected parties during implementation of a project.

Discussion

Identification of risks

It is important to identify the risks in a comprehensive and consistent manner. A risk can simply be defined as something which can create a loss for Saudi Aramco. There are many hazards that can create harm in the organization that are mainly related to oil/ petroleum systems and workings. Until and unless a comprehensive approach would be used to know the risks then it would be impossible to control or manage them in a proper manner. Necessary information is also needed in order to record as a part of the risk identification process. One of the main risks that are vital for the loss of profits as well as health is oil spill. Oil spill is considered as the most effecting risks on which great about of brainstorming as well as costs have been done to avoid and reduce it (Lack, 2009).

The earliest efforts of Saudi Aramco were focused over the handling of oil spills as well as the creation of oil spill recovery, containment vessel and buying of the necessary material and equipment to fight oil spill (Tawfiq, 1993).

A team is to be designated along with a high level review committee to evaluate the capability of the organization and the recommendations that are to be implemented. Based over the recommendations an Oil spill Plan has been created.

An oil spill policy is to be created for the operations of Saudi Aramco. The policy would be able to direct the organization as the related affiliates to join major ...