Evaluating the Risk Evaluation and Management Strategies of Petromin in Saudi Arabia

Abstract

Background: Oil and gas are still the dominant energy sources today. They support the economies of many countries globally. However, the oil and gas industry is predisposed to many supply chain risks, which can lead to extensive supply chain disruptions such as those witnessed due to the COVID-19 pandemic. The threat posed by such events increases the need to assess risk management processes and strategies across organisations. Research Aim: The study examined the risk management process and strategies used at Petromin to help understand their effectiveness and recognise opportunities for improvement. Research Design: The study utilised a mixed methods approach to investigate the risk management process and strategies at Petromin and recognise areas of improvement in its risk mitigation approach. The investigator used survey and case study strategies to collect data to help meet the research objectives. The research employed questionnaires sent to employees and interviews with managers for data collection. It also relied on purposive sampling to obtain an interview sample and systematic sampling for the questionnaire sample. Quantitative data analysis was done using SPSS software, while content analysis helped analyse qualitative interview data. Findings: The research findings showed employees and managers at Petromin used risk identification, risk evaluation, risk prioritisation, and risk response planning. They also found these risk management steps effective in risk mitigation. However, the managers established that they needed improvement and suggested ways to make them more effective. Contributions: The current study explores an uncharted area in risk management in the Saudi oil and gas industry. It adds to the limited literature on supply chain risks in this industry. It also helps confirm existing literature in risk management and contributes to a better understanding of this area in the context of oil and gas firms. Keywords: Risk management process, risk mitigation, Petromin