Is enterprise risk management (ERM) an effective form of risk Dissertation

Is enterprise risk management (ERM) an effective form of risk management and value creation in the oil and gas industry and to w - Dissertation Example In effect, the major strengths and weaknesses that have been associated with BP Oil’s risk management policies shall be outlined and compared to risk management practices at Tullow Oil Ghana. This comparison will be done so that in later chapters, particularly the discussion chapter, the researcher will draw inferences on how Tullow Oil Ghana can learn from the strengths and weaknesses of risk management policies from BP Oil perspective. In relation to the general aim of the study, particular attention shall be paid to how BP Oil have both benefited and failed to benefit from the use of Enterprise Risk Management practices at different times of risk situations that the company faced. In order to follow the qualitative philosophies of the research, the researcher is going to dwell on the analysis of secondary data instead of the use of primary data. This will be done because of the impact that secondary data has on qualitative data, making it more subjective, but backed by empi rical evidence from related literature (PSA, 2007). 4.1 Analysis of Secondary Data on Risk Management Practices at BP 4.11 Risk Management Options at BP As far as risk management practices are concerned, there are a number of options that can be found throughout of existing data for oil and gas companies, of which BP Oil is one. Generally, BP Oil has been identified to have used three major risk management practices at different times of its operations. These options have been avoidance, knowledge and research, and controlling. Avoidance has been used in very high risk situations to ensure that there exist alternative approaches that do not bear any risks at all (Vinnem et al, 2007). The effectiveness of avoidance has however been found to be vested in a risk management environment where risk managers can be proactive enough to identify alternative options (Bly, 2011). Knowledge and research has been pointed out in some existing research data as not being an independent risk managem ent option but an effective tool for equipping the functionality of other risk management options. At BP Oil therefore, knowledge and research is not used in dealing with initial risks but is used as mop up risk management option to consolidate the efficacy of other options on practice. Commonly, research and knowledge is used in relation to the final risk management option at BP, which is controlling. Controlling has been found to be the commonest risk management option at BP for day to day risk situations (PSA, 2007). It has been found to involve the creations of a risk reduction plan made up of parallel development programmes (Vinnem et al, 2007). From the graph above, it can be observed that BP Oil chooses different risk management options depending on the level of risk that the company is presented with at any point in time. Where there is high risk, the company employs the use of avoidance; where there is medium risk, the company employs the use of controlling; and where there is low risk, the company employs the use of knowledge and research (K & R). 4.12 Risk management failures in the Gulf of Mexico Oil Spill In several sectors of risk management application, BP Oil was sharply criticised in the academic and professional cycles for some levels of inefficiencies that accompanied the handling of the Gulf of Mexic

Foreign Policy Forum Simulation Essay Example | Topics and Well Written Essays - 1000 words

Foreign Policy Forum Simulation - Essay Example The country appears split on its part at the global stage. This is seen through the various arguments that have been presented by members of government, through their political parties. In one simulation, Prime Minister Steven Harper presents the case for Canada to maintain its stature as a warrior nation. He argues that going back to the peacekeeping days hinder security efforts that the country has carried out through interventions such as Afghanistan. Similarly, peacekeeping efforts would be a hindrance to Canadian national interests. Harper presents his Conservative Party’s position that the primary role of government is to protect national sovereignty. Avoidance of peacekeeping efforts would allow the country to assert its own agenda at the global stage. Similarly, it would allow Canada to reassert its glorious military history (Beeksma 45). However, the New Democratic Party differs with the Prime Minister’s positioning of the country. They feel that peacekeeping e fforts should serve as the foundation of Canadian foreign policy. The opposition has presented the argument that avoidance of peacekeeping and humanitarian efforts has sunk the country’s importance at the global stage. Dewar explains that, the country has sunk from first to fifty-second in the global rank for peacekeeping nations (Raycraft 78). ... A country’s values are often ingrained in the views of its people. In that regard, Dorn states that peacekeeping operations have now become part of the Canadian national identity. Similarly, they have been celebrated as ‘part of what Canada is as a nation, and Canadians are as people’ (Dorn 7--32). Harper has also explained the same. He states that Canada advocates for right and good for the world. Harper portrays the nation as a confident partner, courageous warrior and a compassionate neighbor. These values are ingrained into its agenda on global peacekeeping efforts. The UN secretary general has also presented Canadian values as part of its image. He has presented the country as ‘the champion of the responsibility to protect’. From the simulations and other literature, it appears that an overwhelmingly partisan view has developed on the Canadian image. Most views hold that the country should be present in all peacekeeping efforts. This is seen from the citizenry to people from other nations. The NDP views that the nation should be committed to humanitarian and peacekeeping efforts as has happened in the past. In his presentations, Ban Ki moon has commended Canadian contributions in the past. In that respect, he has advocated a renewal to these past efforts. Similarly, Dewar has advocated continued participation by Canadian personnel in peacekeeping and humanitarian efforts, in troubled areas. It is, therefore, seen that most of the world has developed a partisan image on the Canadian position on peacekeeping efforts. It has been presented that peacekeeping efforts are part of Canadian values. This image has slowly become part of the national worldview. The representation has,