Risk management Literature review Example | Topics and Well Written Essays - 6500 words

Risk management - Literature review Example A probabilistic incident like oil spill event or oil spill contact to an environmentally responsive area cannot be forecasted; only an approximation of its likelihood can be quantified (Scarlett, Linkov and Kousky, 2011, p.20). Before applying the risk management practices; risk assessment should be done in order to know that what can go wrong at a definite time period and what the outcome will be if it does. Therefore, it is necessary to find out the probable occurrences that could lead to an oil spill, together with the feasible resulting impacts. (Imo, 2010, p.3). This paper will focus on the methodology and structure, purposes of risk management, application of risk management in oil exploration programs, identification of spillage risks, risk assessment of oil spillage risks, risk response planning for oil spillage risks and risk monitoring and control for oil spillage risks. 1.1. Aims and Objectives Aims: The aim of this paper is to develop a framework that will help the compan ies in order to control their oil spillage risks in oil exploration programs. Objectives: The objectives will be to investigate the nature of oil spillage risks; identify and summarize the existing understanding about oil spillage risk management; discover good practices in managing oil spillage risks and to provide a new framework that summarizes the findings and can be used further for managing oil spillage risks. Besides this, the paper has also focused on different methods used to manage the risk of oil spillage. 1.2. Background 1.2.1. The nature of oil spillage risk in oil exploration program The oil industry is concerned with a long history of spills on the North Slope and the probability of future spills is high. Indeed, there has been an oil spillage once a day, on... From this research it is clear that the oil industry is concerned with a long history of spills on the North Slope and the probability of future spills is high. Indeed, there has been an oil spillage once a day, on average, from the time when gas and oil development began on the North Slope. In order to make the subject worse, ocean currents move the chemicals and oil hundreds of miles. Further, in the Arctic Ocean, cleaning up oil spills would lead to enormous challenges. Suppression and recovery at sea hardly ever leads to the removal of more than a comparatively small fraction of a large oil spill, i.e. only 10-15% and often significantly less. Till date, no technology subsists in order to clean up oil in the sea ice circumstances and late-season spills would stay behind until the following year. Furthermore, cold water splits down oil much more slowly than the warm water. Climate change has considerably weakened the basis on which Arctic ecosystems function. Species mainly at ris k include polar bear, walruses, ringed seals, beluga and bowhead whales and coastal birds. So, it is found that the environmental risk is associated with the oil exploration programs. Oil spillage refers to an unintentional release of oil in a water body due to human activity and is regarded as form of pollution. Oil spillage occurs due to release of crude oil from underwater wells and pipeline, or offshore drilling rig, or a tanker, frequently presenting a danger to marine life and environment.