OPERATIONAL RISK MANAGEMENT AND ITS INFLUENCE ON PRODUCTIVITY IN THE OIL AND GAS SECTOR

Abstract

This study examined the concept of operational risk practices and their impact on productivity within the framework of the oil and gas sector. Operational risk practices encompass strategies and measures aimed at identifying, assessing, and mitigating risks associated with day-to-day operations in the industry. Implementing comprehensive risk assessment processes is crucial for identifying potential risks such as equipment failures, supply chain disruptions, and safety hazards. By conducting thorough risk assessments, companies can proactively address vulnerabilities and reduce the likelihood of operational disruptions. Robust risk mitigation strategies, including investing in technology, adopting best safety practices, and improving emergency response procedures, are essential for enhancing resilience to potential threats and minimizing disruptions. Effective communication and collaboration among stakeholders, including employees, contractors, regulators, and communities, are vital for successful risk management. By fostering a culture of transparency and accountability, companies can proactively detect and address operational risks, leading to improved productivity and performance. Prioritizing operational risk management enables companies to enhance competitiveness, safeguard their reputation, and achieve long-term success in the dynamic oil and gas industry