Risk Management And Organisational Profitability
The level of growth and profit maximization in the oil industry has been impaired by a lot of risks. Risk control measures and effective plan are used to reduce the occurrence of such risks. Also, proper risk evaluation techniques are used to evaluate the cost implication of risk on production and the profitability level of such production. This study made use of primary and secondary data. The researcher was able to source field materials through the use of interviews and questionnaires. The secondary data were obtained through Texts and Journals. Findings revealed that certain measures like: risk reduction/prevention, risk avoidance, risk sharing, risk retention, risk modification, etc. could be adopted to reduce the impact of risk on production. The paper posits that if the proper risk control measures and effective planning techniques are applied, the impact of risk management on production would maximize profit.
Keywords: risk; management; profitability; firm
JORIND Vol. 5 (2) 2007: pp. 16-16