scholarly journals ORGANIZATION OF RISK-MANAGEMENT IN EQUINOR ASA

2021 ◽  
Vol 2 (7(71)) ◽  
pp. 56-60
Author(s):  
O. Degtyareva
Keyword(s):  
Risk Management ◽  
Oil And Gas ◽  
Price Volatility ◽  
Enterprise Risk Management ◽  
High Price ◽  
Special Importance ◽  
Analysis And Evaluation ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Oil And Gas Companies

The article reveals modern approaches to enterprise risk management based on the introduction of ERM (enterprise risk management) system, aimed at the integration of all types of risks in the company's strategy and the transition from protection from negative situations to the concept of risk appetite. The special importance of risk management for oil and gas companies in the conditions of global instability and high price volatility is emphasized. The author analyzes the experience of the Norwegian oil and gas company Equinor in the development and implementation of ERM, changes in the organization of risk management and methods of analysis and evaluation.

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 Evaluation of the Level of Enterprise Risk Management Adoption and Maturity of Insurance Companies in Kenya

2017 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Caroline Njagi ◽  
Dr. Amos Njuguna
Keyword(s):  
Risk Management ◽  
Risk Tolerance ◽  
Enterprise Risk Management ◽  
Strategic Decision ◽  
Insurance Companies ◽  
Top Management ◽  
Organizational Strategies ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
Risk Appetite

Purpose: The purpose of this study was to evaluate the extent to which insurance companies in Kenya have adopted ERM process, and then to assess the maturity, challenges and strategies in the implementation of this process.Materials and methods: The research design adopted for the study is descriptive research. The researcher conducted a survey on the 49 insurance companies of Kenya to encapsulate the factors that are relevant in articulating the extent of adoption of ERM and the level of maturity. A sample of 196 respondents was selected from a population of 245 respondents. The study used quantitative and qualitative methods of data analysis. Statistical Package for Social Sciences (SPSS) version 20 program was used for analysis. The results were presented using tables and pie charts. Similarly, qualitative data was summarized and categorized according to common themes and presentedin continuous prose form.Results: The study concluded that organizational related challenges hindered implementation of ERM programs. Results revealed that inadequate application of the risk management framework, ambiguity in roles and responsibilities in risk management, complexities in risk measurement, lack of embodiment of ERM in organizational culture, difficulty in risk quantification, linking risk information to strategic decision making, ensuring that all decisions remain within the organization’s risk tolerance, proactively identifying current and emerging risks, cost and budgetary constraints, misalignment of the risk and business operating models, risk management not seen as a priority by top management and inadequate information to make risk-based decisions hindered implementation of ERM frameworks among insurance firms in Kenya. The findings imply that organization related challenges have a significant effect on ERM implementation.Recommendations: The study recommends that there should be better organizational strategies to help improve implementation of ERM programs. It was found that building a strong risk culture, engaging consultants, building a dedicated ERM function, committed board of directors and top management, developing risk appetite statement, appointment of a Chief Risk Officer (CRO) and availing ERM budgets improved the implementation of ERM programs. Key words: enterprise risk management, adoption, maturity

The Role of Construal Alignment in Enterprise Risk Management

2021 ◽  
Author(s):  
Xin Liu ◽  
Bernard Wong-On-Wing
Keyword(s):  
Risk Management ◽  
Mental Representations ◽  
Construal Level Theory ◽  
Enterprise Risk Management ◽  
Risk Indicators ◽  
Management Philosophy ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Safety Case

According to the Committee of Sponsoring Organizations (COSO 2017), two important elements of an organization’s enterprise risk management (ERM) framework are its risk management philosophy, and its risk appetite and tolerance. Based on Construal Level Theory (CLT), we posit that the effectiveness of ERM depends on the extent of alignment (non-fit or fit) between mental representations (high versus low construal) of those two ERM elements. We test our hypothesis across two risk cases: safety and confidentiality. Results of our experiment suggest that employees are more proactive when there is a construal fit between the emphasis placed on a firm’s risk management philosophy and its expression of the key risk indicators (KRIs). This benefit is observed in the confidentiality case, but not in the safety case. Implications are discussed.

Adoption of enterprise risk management (ERM) in small and medium-sized enterprises: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Consilz Tan ◽  
Su Zy Lee
Keyword(s):  
Risk Management ◽  
Best Practices ◽  
Business Environment ◽  
Risk Tolerance ◽  
Enterprise Risk Management ◽  
Risk Governance ◽  
Success Factor ◽  
Content Type ◽  
Enterprise Risk ◽  
Risk Appetite

Purpose The critical success factor of enterprises is the ability to identify risks and subsequently adapt to the ever-changing technology, as well as the business environment. This paper aims to investigate the top risks faced by small and medium-sized enterprises (SMEs). In the meantime, this paper outlines the perspectives on enterprise risk management (ERM)-based best practices and the adoption level of ERM practices in SMEs. Design/methodology/approach A mixed methodology was used to collect a comprehensive understanding of the adoption of ERM, especially in SMEs. The research is based on cross-sectional questionnaires and collected from risk practitioners in Malaysia. Detailed analysis of the top risks and best practices presented in this paper to identify the developments of risk management in changing organizations. This study used chi-square tests to examine the distribution of the adoption of the ERM programme using risk and insurance management society risk maturity model attributes. Logit regression was used to test the association of ERM efforts with the probability of adopting/considering ERM practices. Findings The findings indicated that business interruption risk and economic slowdown risk are the major concern for companies in Malaysia. A business continuity plan was found to be the most common risk management practice. Efforts such as the establishment of a risk management team and the development of risk appetite and/or risk tolerance statements in an organization are associated with the probability of adopting/considering ERM practices. Research limitations/implications This paper helps to identify challenges of implementing risk governance and management in SMEs that shed light on the regulatory setting which we rather know a little about its impacts. Originality/value There are limited studies conducted in emerging countries on ERM and the application of the ERM framework in SMEs. Prior research studies are mostly generalized and lack details of risk management strategies applying to specific risks. This paper successfully examined the low maturity level of ERM practices and how SMEs in Malaysia managed those risks that emerged in their organizations.

scholarly journals Implementation of Enterprise Risk Management (ERM) Framework in Enhancing Business Performances in Oil and Gas Sector

Economies ◽  
2018 ◽  
Vol 6 (1) ◽  
pp. 4 ◽  
Author(s):  
Sanmugam Annamalah ◽  
Murali Raman ◽  
Govindan Marthandan ◽  
Aravindan Logeswaran
Keyword(s):  
Risk Management ◽  
Oil And Gas ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
Oil And Gas Sector

scholarly journals Enterprise Risk Management (ERM) Practices to Achieve Long Term and Sustainable Organization’s Goals: Case of Institut Teknologi Bandung (ITB)

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Johan Candra ◽  
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Management Practice ◽  
Global Scale ◽  
Enterprise Risk Management ◽  
Trade Offs ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Iso 31000

Every choice made in the pursuit of objectives has its risks. From day-to-day operational decisions to the fundamental trade-offs in the boardroom, dealing with uncertainty in these choices is a part of the organizational lives. A strategy is nothing more than a commitment to a set of coherent, mutually reinforcing policies or behaviours aimed at achieving a specific competitive goal. In order to ensure the implementation of efforts and the allocation of resources to achieve strategic goals, top management should conduct integrated risk management practices to all activities/initiatives of the organization’s management, both individually and collectively. Risk management is an intrinsic part of business planning and decision making. No direction is taken without looking at the potential risks and comparing them against the organization’s risk appetite. This paper aims to research in general the practice of enterprise risk management within Institut Teknologi Bandung (ITB) as a well-known and public-state-owned university in Indonesia. This research concludes that the enterprise risk management implementation is not fully implemented yet within ITB as an enterprise. Almost all respondents agree that the implementation of enterprise risk management has a positive and significant influence on the organization’s objectives achievement. Improving university performance overall will require an effective enterprise risk management practice. Author highly recommends ITB to adopt risk management practice based on ISO-31000 standard, and it can be combined with other risk management standards available nowadays if necessary. ITB needs to start the implementation at the soonest as possible, in order to maintain its strategic position as a top university in Indonesia, increase its competitive advantages to compete in the global scale, and at the same time achieving its vision and mission in a long-term and sustainable manner.

scholarly journals The Role of Risk Culture in Enterprise Risk Management Implementation

2020 ◽  
Vol 15 (11) ◽  
pp. 13
Author(s):  
Mohamed Santigie Kanu
Keyword(s):  
Risk Management ◽  
Organizational Performance ◽  
Empirical Evidence ◽  
Business Environment ◽  
Enterprise Risk Management ◽  
Study Objective ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Study Results ◽  
Risk Culture

Enterprise Risk Management (ERM) and risk culture academics and practitioners have argued that they are inherently related without empirical evidence. They continue to advocate for their implementation by firms to face the dynamic business environment with certainty. The lack of empirical evidence to underpin this relationship partly contributes to their fragmented implementation and the lack of proper attention to risk culture in ERM implementation. The challenge in measuring these two abstract concepts contributes to their dichotomous measures in the literature, with most studies concentrated in the developed economies. The study objective is to provide a comprehensive measurement of the two constructs and empirically determine their relationship in the less-researched context of Africa. The study results empirically confirm risk culture and ERM to have a significant positive relationship. A firm's size and financial leverage were found to be significant determinants for ERM implementation, whereas capital opacity, financial slack, and board composition are not. Organizational leaders are advised by the study not to treat risk culture and ERM as substitutes but as complements. A sound risk culture provides a solid base for ERM implementation. Risk culture should be managed and developed in full alignment with the risk appetite and the ERM framework to improve organizational performance. These shall enable the promotion of a risk-aware culture and ingraining risk-related measures into performance management that help drive the organization forward. The constructs measures presented in the study can be used by academics and risk practitioners to determine the level of risk culture and ERM implementation in organizations.

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