Gap between the importance of key risks and how well they are managed, finds survey
See also:The WEF's Global Risks 2008
Limited oil and gas resources, the recruitment and retention of a qualified workforce, and energy price volatility are the key risks facing oil and gas companies, said Marsh.
In a survey, the broker asked national oil and gas companies to rate the relevance of risks identified by the World Economic Forum and how effectively they were managed.
The report identified a gap between the importance of these risks and how well they are managed.
“It is vital that these companies develop strategies that deal effectively with most important risks facing their business.
Andrew George, Marsh's Energy Practice Leader for Europe, the Middle East and Africa
Participants ranked the top five risks as: Availability of oil and gas resources; recruitment and retention of a qualified workforce; energy price volatility; environmental impact of operations; and political/regulatory risk issues
The survey found that the overall level of risk facing the industry had increased from 2007.
Andrew George, Marsh’s Energy Practice Leader for Europe, the Middle East and Africa, said: “As the custodians of 90% of the world’s oil reserves, it is vital that these companies develop strategies that deal effectively with most important risks facing their business.
He added: “While the relationship between the importance of the risks and management’s effectiveness in tackling them has remained relatively stable between 2007 and 2008, this gap is increasing in some instances, most notably among those risks identified as the most critical.”