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FOCUS 17


EXPLORING NEW


MARKETS: Risky


Business by MICHAEL WILSON, Partner


With the increasing use of new technologies to reach natural resources in more hazardous and remote parts of the world comes an inherent increase in operational risk profi le.


R


esource-rich nations such as Africa are ever more aware of the value they are trading with international organisations. Labour relations are fraught with tension in some parts of the world and public opinion is often hostile to oil


and gas companies even in places that rely on natural resources for their livelihood. Recently in the industry we have seen incidents in Africa that are uncontrollable by companies operating in the region, but are faced by all – How do companies manage risk in order to better mitigate such events?


While there is no doubt that executives are aware of the need to manage risk, the overarching risk programmes at many organisations in the oil and gas industry have not kept pace with the complexities of their operations. Often, risk only becomes a priority when there is a major incident or event that impacts them or another in the sector. Given the fast-changing environment, it is essential that risk management is embedded in the business to identify emerging exposures, monitor known risks, and keep executives and the board updated to make risk-informed decisions and take advantage of opportunities in the market.


© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


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