Issue of Risk Management in Oil Companies

Abstract

Risk management is a decision-making process whereby the results of the risk assessment are integrated with economic, technical, social and political principles for generating risk reduction strategies. One of the most important aspects of risk management is the integration and inclusion of public interests and values, the mediation of interest groups, local administration agencies, and other institutions responsible for setting the specified criteria for the evaluation of priority strategies. Such risks are also present in OMV Petrom and through this paper the main objective is to identify these risks and to find the right solutions in their management and reduction. OMV Petrom's risk management system is fully integrated into the company's business and all staff has overall responsibility to identify and report risks. The hazard from emissions of hazardous substances depends on their physicochemical and toxicological properties, the exposure time and the weather conditions, which determine their dispersion in the low atmosphere. Accidental risks that can cause very large losses depending on their proportion can reach the level of catastrophes, but financial risks play an important role in that they more precisely determine the evolution of society. Taking into account the continuous development process of the company, we aim to implement the risk management process in the new activities. That is why risk awareness, risk analysis, as well as their control are part of daily activity, thus supporting the company's strategy. The paper presents the conclusions of the study and the proposals that can help the company in the risk management of the industry in which it operates, namely that of oil and gas.