When Disaster Strikes Bp s Risk Management Failure Essay

When Disaster Strikes: BP’s Risk Management Failure Risk is a concept that many organizations deal with on an everyday basis. In fact, risk is an integral facet of operating an organization. Risk has negative connotations, but that is a misnomer, because many organizations make use of it for positive gain. One way of looking at risk is that it is what an organization lays on the line so that they can gain something in return. Risk is not inherently bad; it is how an organization manages it that matters. If an organization fails to manage risk properly then that is when problems ensue. In this paper, we will take a look at an example of a company that failed to manage risk properly and explain how it could have been averted. The company that we are going to focus on is British Petroleum (BP) and how their failure to manage risk has resulted in the largest marine oil spill in history. It is through examining and understanding what went wrong that we will be able to find out that risk is always present, it is managing it that matters. In the case of BP, the risks piled up without any safeguards. The disaster that would highlight BP’s failure to manage risk properly is the Deepwater Horizon oil spill. The disaster barely needs an introduction because it is known as one of the most devastating manmade disasters in history. The problem that is the culmination of failed risk management happened on April 20, 2010 in the BP operated Macondo Prospect in the Gulf of MexicoShow MoreRelatedDisaster Disasters Of The Gulf Of Mexico2711 Words   |  11 Pageshistory there have been many disasters that have plagued humanity. These disasters have caused an untold amount of damages and an untold number of lives lost. Each disaster is different from each other and each can leave their own impact on human civilization. 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