Risk management is an integral part of day-to-day business activities
in the energy industry. Oil and gas companies face risks ranging from
volatile commodity prices, which are less linked to basic supply and
demand but more to global socioeconomic factors, to increased health,
safety, and environmental pressures resulting from past and recent
major accidents negatively impacting the environment, industry image,
and its social lease. However, risks related to asset damage, business
interruption, pollution, injuries to people, and damage to properties are
intrinsic in normal oil and gas activities. Then there are the additional
risks of non-compliance and of major cost overruns for large
construction projects so common in today's industry. Consider also the
Stuxnet virus and the more recent cyber threats targeting oil and gas
companies in the Middle East. These are just a few examples of the
serious risks and threats that can impact oil and gas companies.
Technology can help mitigate these risks