Oil and Gas Risk Management
The oil and gas industry is an unstable and risk-prone industry and one of the risky ventures which has always been inundated by a number of risks. Oil and gas companies face a variety of risks in the process of their operations and Various uncertainties go along with these risks. These risks spread across all areas of business and range from worker safety to environmental concerns. In this industry, most of the risks carry elevated costs.
That is why risk management is becoming an integral part of most oil and gas companies. Since the oil and gas industry forms a vital and large part of the industry in our country, risk exposures to this industry can lead to risk exposure for the whole country. risk exposures to this industry lead to risk exposure for the whole country.
Most of the operational conditions, chemicals, and products that are associated with Oil and Gas production pose serious safety and health threats to the workers and the employees are widely exposed to danger.
Occurrence of accidents in such industries causes damage to resources including; Labor, machinery, natural resources, raw materials, equipment, the production process, and as a result the loss of a large portion of organizational and national capital.
That is why safety and health management is absolutely essential in the Oil and Gas industry activities and it is imperative that these companies be in an advanced stage in managing risks in terms of safety, health and also environmental factors. To effectively protect an organization against risk exposures and threats, it is important to understand the total risk exposure and to have a proactive management approach to prevent or minimize the potential effects of risk occurring.