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  4. Managing risks

Managing risks

We identify risks for particular oversight by the board and its committees each year. In 2019 these were: financial liquidity, geopolitical risk, cyber security, process safety, personal safety and environmental risks, security, ethical misconduct, legal and regulatory compliance, and trading compliance
The oversight and management of other risks, for example technological change, is undertaken in the normal course of business.

Managing risks in our operations

Our operating businesses are responsible for identifying and managing risks and our operating management system (OMS) helps them do this in a consistent and rigorous way.
Our OMS brings together bp requirements on health, safety, security, the environment, social responsibility and operational reliability – as well as related issues, such as maintenance, contractor relations and organizational learning – into a common management system.
Any variations in the application of our OMS, in order to meet local regulations or circumstances, are subject to a governance process.

Our operating businesses are responsible for identifying and managing risks, and our operating management system helps them do this in a consistent and rigorous way

Setting out our expectations

We often work with other companies in our joint ventures. Sometimes we are the operator and sometimes another party manages the operations. We monitor performance and how risk is managed in our joint ventures, whether we are the operator or not. In joint ventures where we are the operator, our OMS, code of conduct and other policies apply.
We aim to report on aspects of our business where we are the operator as we directly manage the performance of these operations. Where we are not the operator, our OMS is available as a reference point for bp businesses when engaging with operators and co-venturers. We have a group framework to assess and manage bp’s exposure related to safety, operational, and bribery and corruption risk from our participation in non-operated joint ventures. Where appropriate, we may seek to influence how risk is managed in these types of ventures.

Assessing physical risks to our facilities

We seek to assess the potential impacts of severe weather events and a changing climate – such as heatwaves, extreme precipitation, drought, storms and rising sea levels – on our new projects from the design stage. Our operations and projects can draw on guidance, including in-house expertise, to help them manage potential risks from a changing climate. We are working with industry and academia to build enhanced tools and methods to help assess potential changes.
We’re also working with industry peers through the International Association of Oil & Gas Producers (IOGP). In 2019 we contributed to several IOGP initiatives linked to climate change adaptation. We produced a draft guidance note on climate change which aims to provide current best practice for metocean (a term used in the offshore industry to describe the physical environment) practitioners. We plan to develop this further through a series of working sessions with other operators and hope to publish it in late 2020. In September 2019 we hosted a seminar in London on ‘severe weather from extra-tropical cyclones’, which was attended by around 50 participants, including oil and gas operators, consultants and academics. In November 2019, a representative from bp ran a series of talks on IOGP activities and the latest consensus on severe weather risk across our industry.