Effective asset management and operations are the life blood of any business. The old adage of “grow or die” applies universally, so all work must be executed to deliver business success, or the business will not be competitive and eventually will cease to exist. An essential focus for executives embarking on any new investment is to maximize return on assets through effective risk management. But satisfactory returns are not easy to achieve if your organization does not avoid delays and disruptions through strong risk management.
Few events disrupt business more than those that involve injuries to people or damage to the environment. The 2010 BP explosion and oil spill in the Gulf of Mexico testifies to the high personal, societal, environmental, and corporate costs of a single incident. The incident resulted in the tragic loss of 11 lives and has cost BP more than $40 billion.1