CONCEPTUAL MODEL OF INDUSTRY RISK MANAGEMENT FOR THE OIL AND GAS INDUSTRY IN A DIGITALIZATION ENVIRONMENT

2020 ◽  
Vol 13 (4) ◽  
pp. 191-198
Author(s):  
T.I. Lomachenko ◽  
Keyword(s):  
Risk Management ◽  
Conceptual Model ◽  
Management System ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Risk Groups ◽  
Energy Sector ◽  
Active Involvement ◽  
Risk Management System ◽  
Industry Risk

Improvement of the risk management system in the oil and gas complex is especially important in view of the ongoing changes in the global energy industry, as well as during the global spread of the COVID-19 pandemic, which has a direct impact on many areas of life. Risk assessment specialists have clearly underestimated the scale of risks and threats associated with this. Russia’s energy policy is presented in the Energy Strategy of Russia for the period until 2035, which sets out the main goals, objectives, quantitative benchmarks and mechanisms for their achievement. However, the problem of long-term risk management in the energy sector, namely, early identification, assessment and substantiation of risks, is one of the priorities in this area, which will ensure support for positive and strategically verified, including innovative solutions [1. P. 32; 2. P. 102]. The importance of these solutions makes the problem of risk management in the energy sector extremely important and urgent. The article reveals the specific features of the oil and gas complex at the current stage, describes the industry in a pandemic, defines the main risk groups of oil and gas companies, such as general and specific risks, as well as subjects of risk management system. Complex conditions of restrictions are considered, under which the need to preserve business requires optimization of the technological 198 Экономические системы. 2020. № 4 Economic Systems. 2020. No. 4 process, including by reviewing the functionality of employees, systematization of document flow in electronic format, the transfer of production processes to a digital platform. The scientific innovation of the research lies in the development of a conceptual model of industry risk management of the oil and gas complex enterprise, which allows the system to regulate strategic, design, operational and production relations and interactions between functional departments, departments, services of the company involved in risk management and their active involvement in the process of creating and maintaining the value of the business in conditions when the risks are becoming increasingly complex and interrelated, using digital and innovation.

scholarly journals Enterprise Risk Management In The Oil And Gas Industry: An Analysis Of Selected Fortune 500 Oil And Gas Companies’ Reaction In 2009 And 2010

2016 ◽  
Vol 9 (1) ◽  
pp. 23-30
Author(s):  
Violet C. Rogers ◽  
Jack R. Ethridge
Keyword(s):  
Risk Management ◽  
Management System ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fortune 500 ◽  
Enterprise Risk Management ◽  
Gas Industry ◽  
Risk Management System ◽  
Enterprise Risk ◽  
Oil And Gas Companies

In 2009, four of the top ten Fortune 500 companies were classified within the oil and gas industry.  Organizations of this size typically have an advanced Enterprise Risk Management system in place to mitigate risk and to achieve their corporations’ objectives.  The companies and the article utilize the Enterprise Risk Management Integrated Framework developed by the Committee of Sponsoring Organizations (COSO) as a guide to organize their risk management and reporting.  The authors used the framework to analyze reporting years 2009 and 2010 for Fortune 500 oil and gas companies.  After gathering and examining information from 2009 and 2010 annual reports, 10-K filings, and proxy statements, the article examines how the selected companies are implementing requirements identified in the previously mentioned publications. Each section examines the companies’ Enterprise Risk Management system, risk appetite, and any other notable information regarding risk management.  One observation was the existence or non-existence of a Chief Risk Officer or other Senior Level Manager in charge of risk management. Other observations included identified risks, such as changes in economic, regulatory, and political environments in the different countries where the corporations do business.  Still others identify risks, such as increases in certain costs that exceed natural inflation, volatility and instability of market conditions.  Fortune 500 oil and gas companies included in this analysis are ExxonMobil, Chevron, ConocoPhillips, Baker Hughes, Valero Energy, and Frontier Oil Corporation. An analysis revealed a sophisticated understanding and reporting of many types of risks, including those associated with increasing production capacity.  Specific risks identified by companies included start-up timing, operational outages, weather events, regulatory changes, geo-political and cyber security risks, among others.  Mitigation efforts included portfolio management and financial strength.  There is evidence that companies in later reports (2013) are more comprehensive in their risk management and reports as evidenced by their 10-K and Proxy Statements (Marathon Oil Corporation, 2013).

scholarly journals Enterprise Risk Management In The Oil And Gas Industry: An Analysis Of Selected Fortune 500 Oil And Gas Companies Reaction In 2009 And 2010

2013 ◽  
Vol 6 (6) ◽  
pp. 577-584 ◽  
Author(s):  
Violet C. Rogers ◽  
Jack R. Ethridge
Keyword(s):  
Risk Management ◽  
Management System ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fortune 500 ◽  
Enterprise Risk Management ◽  
Gas Industry ◽  
Risk Management System ◽  
Enterprise Risk ◽  
Oil And Gas Companies

In 2009, four of the top ten Fortune 500 companies were classified within the oil and gas industry. Organizations of this size typically have an advanced Enterprise Risk Management system in place to mitigate risk and to achieve their corporations objectives. The companies and the article utilize the Enterprise Risk Management Integrated Framework developed by the Committee of Sponsoring Organizations (COSO) as a guide to organize their risk management and reporting. The authors used the framework to analyze reporting years 2009 and 2010 for Fortune 500 oil and gas companies. After gathering and examining information from 2009 and 2010 annual reports, 10-K filings, and proxy statements, the article examines how the selected companies are implementing requirements identified in the previously mentioned publications.Each section examines the companies Enterprise Risk Management system, risk appetite, and any other notable information regarding risk management. One observation was the existence or non-existence of a Chief Risk Officer or other Senior Level Manager in charge of risk management. Other observations included identified risks, such as changes in economic, regulatory, and political environments in the different countries where the corporations do business. Still others identify risks, such as increases in certain costs that exceed natural inflation, volatility and instability of market conditions. Fortune 500 oil and gas companies included in this analysis are ExxonMobil, Chevron, ConocoPhillips, Baker Hughes, Valero Energy, and Frontier Oil Corporation.An analysis revealed a sophisticated understanding and reporting of many types of risks, including those associated with increasing production capacity. Specific risks identified by companies included start-up timing, operational outages, weather events, regulatory changes, geo-political and cyber security risks, among others. Mitigation efforts included portfolio management and financial strength. There is evidence that companies in later reports (2013) are more comprehensive in their risk management and reports as evidenced by their 10-K and Proxy Statements (Marathon Oil Corporation, 2013).

scholarly journals Risk management system model to improve the reputation of oil and gas companies in the Java island - Indonesia

2019 ◽  
Vol 276 ◽  
pp. 02014
Author(s):  
Nevila Rodhi Nova ◽  
I Putu Artama Wiguna ◽  
Anwar Nadjadji
Keyword(s):  
Sustainable Development ◽  
Risk Management ◽  
Management System ◽  
Oil And Gas ◽  
Negative Impact ◽  
Risk Management System ◽  
Preventive Method ◽  
Iso 31000 ◽  
Social Environmental ◽  
Oil And Gas Companies

Risk management has been widely studied and applied in oil and gas pipeline projects, but the reality is that the impacts still occur. This is due to the ineffectiveness of existing risk management applications, so of course in this case an effective risk management system is needed, in which risk management must pay attention to all aspects that exist, both internal aspects, external aspects, and other aspects that can affect and influenced by existing risks and risk management not only can be used as a preventive method. But it can also support sustainable development targets. This paper presents the application of risk management by oil and gas companies in Indonesia that has been adapted to ISO 31000:2009 as a framework that can integrate various other management processes, including the management of HSE (Health, Safety, and Environment) risk in the hope of that sustainable development can be achieved . But in the reality it can not be denied that the activities that continue to this day still cause negative impact, especially for the environment. International oil and gas companies nowadays place more emphasis on preventive measures than the methods of mitigation. Thus it shows that the concept of sustainable development has not been fully considered in risk management applications. The existence of a continuous negative impact would greatly affect the credibility of oil and gas companies. Based on the results of research conducted with the hybrid method and analyzed with the help of System Dynamics it can be concluded that there are 3 (three) factors that can affect reputation risk, these factors are social, environmental, and economic and the model built in this study shows that it will can help the oil and gas company players to predict and improve the company’s reputation.

Risk Management, JSC Achimgaz Project Experience

2017 ◽  
Vol 6 (4) ◽  
pp. 3-9
Author(s):  
Е. Усова ◽  
E. Usova ◽  
Валерий Фунтов ◽  
Valeriy Funtov ◽  
А. Бутов ◽  
...  
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Natural Gas ◽  
Management System ◽  
Business Processes ◽  
Oil And Gas ◽  
Risk Management System ◽  
Iso 31000 ◽  
Decision Making Processes ◽  
Oil And Gas Sector

The article is devoted to the introduction of risk management system in the activities of JSC Achimgaz, operating in the oil and gas sector and implementing the Project for the extraction of natural gas and condensate (hereinafter the Project). The analysis of implementation, its effectiveness within a system is discussed. According to the analysis the conclusion about the necessity of creating a unified system that integrates risk management into decision-making processes, key business processes and the culture of the organization, according to GOST ISO 31000-2010.

scholarly journals EFFECTIVE RISK MANAGEMENT AND ITS DETERMINING FACTORS

2021 ◽  
Author(s):  
Oksana Netrebskaya
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Control System ◽  
Management System ◽  
Risk Groups ◽  
Expert Assessment ◽  
Security Risks ◽  
Risk Management System ◽  
Determining Factors

The article deals with the risk factors in the forestry of the country. The functions of risk management, implemented in forestry as a control system and a subsystem of management, are presented. The system of minimization of managerial risks and their consequences operating at the level of the federal forestry agency is considered. The results of an expert assessment of complex risk groups, and the most significant of them, are presented. The most significant and entailing serious risk consequences are strategic (programmatic), financial, commercial risk factors, as well as security risks, climatic and personnel risks. The need to modernize the existing forestry risk management system in a direction that provides greater transparency of information required for management has been determined.

scholarly journals Strategic directions for the formation of an effective risk management system in agricultural organizations of the Republic of Belarus

2021 ◽  
Vol 1 (8) ◽  
pp. 46-69
Author(s):  
L. M. Pavlovich
Keyword(s):  
Risk Management ◽  
Conceptual Model ◽  
Management System ◽  
Agricultural Sector ◽  
Risk Management System ◽  
Agricultural Organizations ◽  
The Republic ◽  
Business Entities

The article substantiates the strategic directions for the formation of an effective risk management system by business entities in the agricultural sector of the Republic of Belarus. A conceptual model for the development of an effective risk management system in agriculture, a methodology for identifying and assessing risks in agricultural organizations have been developed. A set of organizational and economic measures to anticipate risks and minimize losses of agricultural organizations has been substantiated.

Considerations Regarding Environmental Aspects of Risk Management in the Oil and Gas Industry

2018 ◽  
Vol 27 ◽  
pp. 213-218 ◽  
Author(s):  
Mădălina Albu
Keyword(s):  
Risk Management ◽  
Natural Gas ◽  
Management System ◽  
Power Plants ◽  
Oil And Gas ◽  
Thermal Power ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Majority Population ◽  
System Risk

The current global industry depends to a large extent on oil, gas and products. Hydrocarbons form of oil and its derivatives have become the main source of energy for the majority population. Crude oil, through its many uses is very important because it is cleaner than coal and cheaper and easier to transport than natural gas. Sometimes it called "black gold" and provides nearly half of the energy used in the world. Without it, would block transportation and large industrial equipment or thermal power plants could not operate.All activities of an organization involve risks and risk management is the process of substantiating the decision, taking into account the effects of uncertainty on objectives materialize and the establishment of measures and actions needed. To have the expected effectiveness within the organization, risk management must become an integral part of the administration, politics and culture of the organization. Environmental risk management differs significantly from other types of risk management due to the fact that its particular characteristics reflecting the complexity of the environmentEnvironmental risk management is an integral part of the overall management system. Establishing detailed integration or interaction management system risk management system or environmental management systems implemented by the organization must not lead to increase resources needed for this process.Safety and environmental issues top the agenda remains in the oil and gas companies when it comes to risk management. Oil and natural gas, both extraction and transport, has a range of important risks both to workers from these activities by accidents at work are exposed to people from neighboring villages (major accident) and for the environment.This paper presents theoretical and practical considerations regarding the implementation of the concept of risk management in their activity in the oil and gas industry and emphasizes the aspects of the environmental risks of oil industry. In the first part of the paper theoretical considerations are made on risk management and risk management standard. In the second part also presents practical aspects of how risk management is implemented in the oil and gas industry.

scholarly journals Contract modeling of investment projects in the field of oil and gas construction

2021 ◽  
Vol 266 ◽  
pp. 06001
Author(s):  
A.S. Altemirova ◽  
I.V. Burenina
Keyword(s):  
Risk Management ◽  
Management System ◽  
Construction Projects ◽  
Oil And Gas ◽  
Optimal Contract ◽  
Preliminary Assessment ◽  
Investment Projects ◽  
Risk Management System

The purpose of this article is to select and justify the optimal contract model for one of the largest investment and construction projects of PJSC based on a preliminary assessment of the project under several alternative contracts. To achieve this goal, the following results were obtained: first, a classification of contracts for investment and construction projects (ICP) was developed, adapted to the specifics of the oil and gas business, second, the process steps for planning the contract model of oil and gas construction projects were formed, and third, a conclusion was made about the feasibility of using a particular contract model in terms of the project economy, its timing, the quality of decisions at each stage, and the risk management system.

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