Impact Of British Petroleum’s Project Under John Browne’s Culture Of Risk Beyond Petroleum

Analysis Of The Impact Of Various Events On The Project

Planning provides different direction to the project and on the other hand when the project is being initiated and is being worked upon changes in the project occurs. It is required that proper analysis of all the aspects should be done which should cover various changes which have occurred in the project of British Petroleum (PLC) and John Browne: A Culture of Risk beyond Petroleum. For a petroleum company most important aspect which is attached is risk management. It is necessary that the risk factors which could occur at the workplace should be worked upon and a relevant set of support should be provided to the organizations so that the risk which could occur in near future could be mitigated. Managing the risk should be kept on the priority so as to manage the organization and proper support could be provided to the organizations. There were certain set of plans which were developed previously so as to manage the risk and to provide support to British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum. Working on every single aspect which could help in mitigating the risk, it is required that regular check on all the aspects of the risk factors should be kept by the organization and changes should be applied whenever required so as to ensure that the organizations could work effectively in the market.

Passing time brings many of the changes and it is required that the work should be processed in the manner with the effect of which risk aspects could be mitigated by the organization. In the project processes there are various set of aspects which keeps on changing and so the market also keeps on changing according to the situation and the economy (Rozenes, et. al., 2013). In such cases it becomes necessary that risk should be evaluated as when the things changes the work process also changes and so the requirements of the workplace changes. In such situations it is required that proper focus should rely upon the previous measures which were taken by the organization to mitigate the risk and all the aspects should be evaluated so as to manage the work and provide support system for the organization.

In the report it is being analyzed that John is retiring from the organization and the new CEO is being appointed so as to manage the work. It is a crucial time for the company in this situation it could be possible that the new CEO might not be able to manage the work and provide relevant set of support to the company (Snyder, 2013). This will have a great impact on the process as well as progress of the company. A proper time is required for a new CEO to understand the people as well as process of the organization and according to the current state of the workplace it is required that proper and relevant support should be provided from the side of CEO. Hence, it could be possible that retirement of the John could have a great impact on the work process of British petroleum.

Analysis Of Threats

Another risk factor which was analyzed was that on retirement of John company will have to make a huge payment, in this situation British Petroleum will have to make a huge payment on the occasion of retirement (Chan, et. al., 2016). This payment will have a great impact on the profit and loss account of the company. In this case it is required that company should try to manage all the aspects and should try to minimize the unnecessary expenses which could have a great impact on the work process and on the progress of the company.

Leakage in the oil tanks and spilling of the petroleum will affect the progress of the organization. It is required that British Petroleum should work towards to reduce the oil spill and should try to maintain the oil tanks. Oil spill will also have a great impact on the environment and so will have a huge impact on society which is attached with the British Petroleum (Creswell, 2013).

Spill of oil is also increasing the risk of fire as it could be possible that the tanks could catch fire in high temperature and could lead cause huge loss to the society as well as to the company. It is necessary that such type of aspects should be worked upon by the organization.

There are various mitigation activities which were being determined which could help in mitigating the expenses and providing support to the same so as to manage all the processes and reducing chances of occurrence of the risk factors. Understanding the opportunities and evaluating the aspects which could help in managing the risk factors which could affect the progress of the company. It is required that all the opportunities should be focused upon by the organization with the effect of which British Petroleum could work upon the threats and could manage the risk aspects in a proper was well as effective way (Fermont, et. al., 2015).

Working upon the project management aspects and planning the things in a proper way will help in mitigating the risk. Adopting the most appropriate project management techniques and methods will help in mitigating all the risk factors and will provide a better as well as effective set of support to the British Petroleum.

Another aspect is reducing the unnecessary expenses, it is required that all the expenses which are not necessary should be worked upon and organization should try to reduce them. Forecasting and prioritizing the things and activities will help in mitigating the risk which could affect British Petroleum in the long run (Gunawan, 2015).

Working towards to the maintenance of the tanks and removing the issue of oil spill will help in managing the loss. It is required that the tanks should be maintained and a tender should be given to a project management company so that tanks could be maintained and spilling of the oil could be stopped by the company so as to manage the progress of the organization.

These are some of the strategies which could be adopted by the organization so as to mitigate the risk factors which could have an impact on the progress of the project. It is required that project management team should be focused upon with the help of which company could move forward towards to manage the risk and ensure to progress in the competitive market (Integrating Process and Work Breakdown Structure with Design Structure Matrix, 2010).

Mitigation Activities Required

The budget schedule was prepared in the previous plans for the British Petroleum and it is being analyzed that the budget has been changed with the change in the requirements. It is being evaluated that the budget of the company is exhausted because of the requirement of the market as well company due to the risk factors. Exhausting the budget is a matter of concern for the company because it has a huge impact on the progress as well as profit and loss account of the company. It is necessary that the work should be done focusing upon the expenses which are incurring in the business processes (John, 2016). Evaluations are made that the organization is working towards mitigating the unnecessary expenses and is working towards to reduce the risk of uncertainties and to manage the financial position of the company. Hence, a revised budget is being prepared so as to provide a proper set of direction to the company with the help of which work could be managed and company could be helped so as to progress in the market.

Particulars	Estimated Cost
Project Head	$2,208.00
Planning Manager	$2,040.00
Construction Engineers	$632.00
Risk Management Team	$1200.00
Technicians	$448.00
Team Leaders	$648.00
Contractor	$1,064.00
Staff Members	$1,760.00
Government	$0.00
Total Expenses	$10,000

Above is the estimated budget for the project, there are certain set of things which are being exhausted due to the requirement as well as change in time. It is required that the organization should work towards to maintain the budget and should work towards to mitigate the risk in the budget planned by the organization. It is required that the organization should ensure that the budget should be reviewed again so as to manage the work according to the planned aspects indulged in the budget (Joslin, et. al., 2016).

The risk register is being updated in which an opportunity and a threat are being registered so as to provide a support to The British Petroleum company. It is required that proper set of support should be delivered to the company so that it could manage the risk aspects and could develop the strategies which could help in mitigating the same.

Risk Category	Risk Details	Impact	Probability	Impact x Probability	Risk Owner	Risk Mitigation
Opportunity	Reducing unnecessary expenses and managing finances of the organization	3	3	9	Finance Department	Reduction in the unnecessary expenses will help in providing direction to the organization with the help of which it will be able to ensure that all the finances could be managed. It is being evaluated that the budget prepared by the company has already being exhausted so to ensure that the organization could progress it is required that all the finances could be managed and unnecessary expenses should be reduced.
Threat	BP might lose its sight and vision with introduction of new CEO after John.	3	3	9	Board of Directors	John has set the clear vision for the organization and this need to be handed over to new CEO well before John leaves.
Threat	Oil spill is the new risk factor which will have a huge impact on the progress of the company. It is necessary that British Petroleum should work towards to maintain the tanks and should try ensuring that spilling of the oil could be stopped.	5	5	25	Project Management Team	It is necessary that the tender should be given to the project management team so that the risk could be mitigated. Contract should be signed so that the work could get completed within the deadlines and spilling of the tanks could be stopped

(Levine, et. al., 2012)

Changes are the necessity for every organization and it is required that the change which is being implemented should be justified and should meet the requirement of the company (Nakayachi, 2014). I the situation of British Petroleum the change have occurred due to the time as well as requirement of the workplace. With the passing time it was being evaluated that the condition of the tanks was getting affected day by day due to which leakage in the same started. Due to leakage in the tanks oil spill was taking place. Oil spill was affecting the environment and was causing huge loss to the company. In this situation it has become important for the organization to initiate the changes in the project management aspects and to mitigate the risk factors which could occur in near future.

Hence, it could be said that the changes which are being introduced in the project are justified and it requires that organization should focus upon same so that things could get managed in a better as well as effective way. Working on the risk register and adopting the appropriate techniques so as to reduce the same will help in reducing the risk of uncertainties and will help in providing the support system for the company (Rozenes, et. al., 2013).

It could also be justified that company should work upon reducing the cost and manage the expenses. Working towards to reduce the expenses and reducing the wastage and unnecessary cost will help in reducing the risk of uncertainties and will help in maintaining the financial position of the company in an effective as well as in an appropriate way (Snyder, 2013).

References

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Creswell, W. J. (2013). Planning and Implementation. Upper Side of Business , 8-12.

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Gunawan, I. (2015). Analysis of education and practical relevance of project management topics in New Zealand. International Journal Of Project Organisation And Management, 7(2), Pp. 174.

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Snyder, C. S., 2013. Project Managers Book of Forms. In: Project Managers Book of Forms. s.l.:WILEY, p. Risk Register.