Enterprise Risk Management: Is the Oil and Gas Industry Adequately Handling Exposures to Extreme Risks?
Article from: OGEL 6 (2011), in Contract Management, International Petroleum Contracts
Introduction
Many oil and gas companies have over the past decade, in the wake of tougher corporate regulation, established or expanded risk management procedures and systems integrated with company-wide approaches, or Enterprise Risk Management (ERM). Do such systems necessarily make companies more aware of and better prepared to deal with low likelihood but high impact (extreme risk) events should they occur? The industry as a whole does not have a very good track record in managing or responding to unexpected risks and opportunities in an integrated and systematic manner. Indeed the ERM ...