There are risks associated with every workplace. Oil and Gas extraction, transportation, processing and handling are associated with hazards which pose threats to the life, health, and wellbeing of workers as well as the public and environment. Hazards can be reduced by the application of improved technology. Industrial accidents create not only personal grief and distress but also huge financial costs and unwelcome negative publicity for the organization and industry concerned.

A well-functioning enterprise risk management system helps improve decision-making and performance by more closely linking strategy and business objectives to risk. Enterprise risk management practices integrate with all other aspects of the business, including governance, performance management, and internal control practices. Although it may not be possible for organizations to manage all potential outcomes of a risk, they can improve how they adapt to changing circumstances. This is sometimes referred to as organizational sustainability, resilience, and agility. Regardless of the type of entity, implementing enterprise risk management practices with other aspects of the business enhances trust and instils greater confidence with stakeholders.

An organization wants to know its risks and to consider how to deal with them. Not all risks can be known in advance, but the more that are considered and planned for the better. Risks include the following: Upside and downside risks, External and internal risks, Strategic and operational risks.

Analyzing the risks in various ways helps identify more risks and understand them better. Risks are analyzed first to see which risks are beneficial and which are detrimental to an organization. Second, they are analyzed to see which come from external sources and which come from inside an organization. Third, they are also analyzed to see which are high level risks that affect the success of the organization overall and which have to do with the day-to-day activities of the organization.

Risks have some crossover, so the same risk can be uncovered by different analyses. Using the various ways of analyzing the risks provides a better chance of finding and managing all the risks.