Risk Management: BP’s Failure
Most risks in organizations lead to financial loss or gains depending on how well organizations identify risks and reduce as many risks as possible. Not managing possible risks within an organization effectively can result in consequences or possibly worse. Therefore, managing risks within an organization should be vital for the organizations to be successful and should not be overlooked. Operational risk arises from three key areas of an organization: people, processes, and technology. To prevent operational risks from arising, organizations needs to consider operational considerations. They need to look at plans and processes to identify any potential risks and to reduce and prevent potential risks and to make sure that the workplace is safe. The failure to implement risk management plans and reduce risks can be a possible result such as the case similar to the BP oil company. …show more content…
The oil leak also damaged hundreds of coastline before it was capped 3 months after the blowout. The federal invested the gulf spill and reported that “no risk assessment [was] done before blowout” (Zolkos and Bradford, 2011). There were multiple causes to the disaster and involved multiple companies, driller Transocean Ltd. and cement specialist Halliburton Co (BBC News, 2011).
The causes that lead to the disaster included the failure to consider possible risk, a flawed design for the cement used to seal the bottom of the well, failure to properly test if the cement would seal properly, failure to exercise proper caution over the job of sealing the well with cement, making bad decisions which increased the risk and led to the explosion (BBC News,
Most risks in organizations lead to financial loss or gains depending on how well organizations identify risks and reduce as many risks as possible. Not managing possible risks within an organization effectively can result in consequences or possibly worse. Therefore, managing risks within an organization should be vital for the organizations to be successful and should not be overlooked. Operational risk arises from three key areas of an organization: people, processes, and technology. To prevent operational risks from arising, organizations needs to consider operational considerations. They need to look at plans and processes to identify any potential risks and to reduce and prevent potential risks and to make sure that the workplace is safe. The failure to implement risk management plans and reduce risks can be a possible result such as the case similar to the BP oil company. …show more content…
The oil leak also damaged hundreds of coastline before it was capped 3 months after the blowout. The federal invested the gulf spill and reported that “no risk assessment [was] done before blowout” (Zolkos and Bradford, 2011). There were multiple causes to the disaster and involved multiple companies, driller Transocean Ltd. and cement specialist Halliburton Co (BBC News, 2011).
The causes that lead to the disaster included the failure to consider possible risk, a flawed design for the cement used to seal the bottom of the well, failure to properly test if the cement would seal properly, failure to exercise proper caution over the job of sealing the well with cement, making bad decisions which increased the risk and led to the explosion (BBC News,