Why oil and gas pays special attention to risk
High capital intensity, long projects, hazardous operations and strict regulation make the cost of a mistake enormous. That is why risk management in the industry is part of the operating culture and is never treated as a formality. The best practices of BP, ExxonMobil and major Russian companies are built around quantitative risk assessment and built-in controls.
Key risk groups
- Operational and HSE risks: accidents, spills, fires, injuries. Managed through the barrier safety model and an HSE culture.
- Project risks: delays and budget overruns on major projects, contractor risks, equipment supply risks, commissioning risks.
- Environmental risks: pollution, fines, reputational damage; growing ESG requirements.
- Market risks: oil price volatility, currency risks.
- Geopolitical and sanctions risks: restrictions on technology, logistics and payments (see the lesson of the Strait of Hormuz).
- Cyber and IT risks: attacks on industrial control systems (ICS) and corporate systems.
How risks are managed: practices
- Quantitative assessment of top risks and their impact on schedule, budget and cash flow.
- Barrier model (bow-tie): causes → event → consequences → barriers.
- Risk-based project decision-making (stage-gate).
- Continuity of critical operations: BIA and continuity plans for production, logistics and sales.
Risk in oil and gas is closely linked to business continuity: even with strong risk management, you need a plan in case a major disruption happens.
Frequently asked questions
Which risks in oil and gas are the most critical?
Operational and HSE risks (accidents, spills) and project risks (delays and budget overruns on major projects). They carry the largest potential damage and need both prevention and recovery plans.
How does business continuity fit in?
Risk management reduces the likelihood and severity of events. Business continuity (BCM) ensures a quick return to work if an event does happen. An industry with stakes this high needs both.
Business continuity for the needs of your industry
Start with the assessment: it takes into account critical processes and recovery times. Then we will choose a format, from a programme for your team to a turnkey system.
