Risk management crucial for ensuring sustainability in energy, minerals sectors
Published: 04:07 PM,Jul 30,2024 | EDITED : 08:07 PM,Jul 30,2024
In the oil and gas sector, preventive measures protect facilities and workers from environmental accidents and leaks, covering onshore and offshore production plants, pipeline networks, and petroleum refineries.
MUSCAT: Risk management in the energy and minerals sectors is crucial for business continuity and sustainable development. These sectors encounter numerous challenges, including environmental issues, facility encroachments, unusual weather conditions, and global political and economic fluctuations.
By identifying and assessing potential risks, organisations can develop effective strategies to manage crises and minimise their negative impact, thereby maintaining operational stability and achieving organisational goals.
As Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, states, “Safety and security is one of the most important aspects enhanced by risk management.”
In the oil and gas sector, preventive measures protect facilities and workers from environmental accidents and leaks, covering onshore and offshore production plants, pipeline networks and petroleum refineries.
In the metals sector, risk management “improves indoor safety standards and reduces accidents through a safe engineering design and periodic training of personnel,” ensuring a safer and more efficient working environment.
In the electricity and renewable energy sector, risk management is essential for the reliability and continuity of energy supply.
This sector faces risks such as integrating renewable energy plants with the electrical grid and managing fluctuations in energy production due to climate change.
Risk management strategies, developed in coordination with stakeholders, ensure the reliability of the production network, the use of reserve fuels, and the implementation of periodic tests for rapid switching between different energy sources, thereby ensuring the stability and safety of the electrical grid.
With technological advancements, cybersecurity has become a critical component of risk management. Digital transformation increases reliance on electronic systems, making them vulnerable to cyber attacks.
Cyber risk management includes “protecting sensitive data and operating systems from digital threats, updating the information security risk management framework and implementing cyber resilience strategies,” Al Hadhrami added.
This ensures business continuity and reduces the likelihood of technical and financial damage.
Risk management promotes collaboration between government and private institutions to ensure information exchange and the effective implementation of contingency plans.
It also improves the financial performance of companies by reducing potential losses and increasing investments, supporting financial stability and market competitiveness.
Ultimately, risk management “contributes to confidence between investors and partners, and supports efforts to achieve economic and environmental sustainability in the Sultanate of Oman,” Al Hadhrami concluded.
By identifying and assessing potential risks, organisations can develop effective strategies to manage crises and minimise their negative impact, thereby maintaining operational stability and achieving organisational goals.
As Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, states, “Safety and security is one of the most important aspects enhanced by risk management.”
In the oil and gas sector, preventive measures protect facilities and workers from environmental accidents and leaks, covering onshore and offshore production plants, pipeline networks and petroleum refineries.
In the metals sector, risk management “improves indoor safety standards and reduces accidents through a safe engineering design and periodic training of personnel,” ensuring a safer and more efficient working environment.
In the electricity and renewable energy sector, risk management is essential for the reliability and continuity of energy supply.
This sector faces risks such as integrating renewable energy plants with the electrical grid and managing fluctuations in energy production due to climate change.
Risk management strategies, developed in coordination with stakeholders, ensure the reliability of the production network, the use of reserve fuels, and the implementation of periodic tests for rapid switching between different energy sources, thereby ensuring the stability and safety of the electrical grid.
With technological advancements, cybersecurity has become a critical component of risk management. Digital transformation increases reliance on electronic systems, making them vulnerable to cyber attacks.
Cyber risk management includes “protecting sensitive data and operating systems from digital threats, updating the information security risk management framework and implementing cyber resilience strategies,” Al Hadhrami added.
This ensures business continuity and reduces the likelihood of technical and financial damage.
Risk management promotes collaboration between government and private institutions to ensure information exchange and the effective implementation of contingency plans.
It also improves the financial performance of companies by reducing potential losses and increasing investments, supporting financial stability and market competitiveness.
Ultimately, risk management “contributes to confidence between investors and partners, and supports efforts to achieve economic and environmental sustainability in the Sultanate of Oman,” Al Hadhrami concluded.