Professional Documents
Culture Documents
Risk overview
Risk management
Quarterly exercise
R
isk Identification
Identifying and characterising Dragon Oil risks (corporate
and department levels) to objectives and agreeing appropriate
risk ownership
Establish strategic,
organisational and risk
management process
context by considering
the environment
within which the risks
are present
R
isk Assessment
Assessing risk severity through establishing the impact and
likelihood (gross, net and target basis) and the effectiveness
of existing controls and mitigants in order to prioritise risks
R
isk Treatment
Consideration for further risk mitigating actions or
treatment alternatives
38
Strategic Review
Corporate Risk
Register
Department Risk
Registers
Risk Monitoring
and Reporting
Semi-annual
reporting to
executive committee
R
egular review of risk
status, including changes
to the risk environment
and implementation
progress against agreed
actions. Risk reporting is
the creation of useful
management information
that can be used to
inform business decision
making and prioritisation
of resources
epartmental Risk
D
Registers and Corporate
Risk Register
Annual reporting
to the audit
committee/board:
Corporate Risk Register
39
Principal risks
The Board and management are committed to an
effective and proactive approach to risk management
as a tool to enhance shareholder value.
40
Strategic Review
RISK DESCRIPTION
MITIGATION
STRATEGIC RISKS
Limited export
routes for our
entitlement
share of crude
oil production
Reliance on sole
producing asset
Failure to attract
and retain skilled
and talented
human capital
Unexpected loss/
unavailability
of drilling rigs in
Turkmenistan
The Group has contracted several jack-up and platformbased rigs for its operations in Turkmenistan. It is
expected that the Group will have four rigs operational for
all or part of 2014. On the basis of awarded contracts and
pending delivery of two rigs later in 2014, we expect to
have five rigs operating in 2015.
Political and
country context
OPERATIONAL RISKS
41
Principal risks
Continued
RISK DESCRIPTION
MITIGATION
Quality of
contractors to
undertake projects
HSE hazards,
incidents
and liability
Impairment of
production due to
integrity of assets
in Turkmenistan
Prolonged or
sharp decline
in oil price
Failure to
replace, acquire
and develop
additional
reserves
FINANCIAL RISKS
42
Strategic Review
RISK DESCRIPTION
MITIGATION
Economics
under the PSA in
Turkmenistan
Gas development
project in
Turkmenistan
Security of
cash balances
Difficulties in
securing approval
processes, licences
and visas
Sanctions
against Iran
COMPLIANCE RISKS
43