This report from Arthur D. Little discusses the challenges faced by oil and gas companies in managing potentially catastrophic risks. The report highlights the importance of assessing Exposure to Risk (EtR), which is the maximum potential economic loss associated with catastrophic risk. The report suggests that companies should establish a new approach to evaluating EtR, which will provide a basis for strengthening their risk management arrangements. The report also mentions that the optimal EtR Evaluation Model is suited to the management and organizational arrangements of individual oil and gas companies and is applicable to International Oil Companies (IOCs), National Oil Companies (NOCs) and Oil Fields. The report concludes by stating that the focus on assessing EtR will provide long-term stability to the balance sheet of oil and gas companies.
