Analysis Of Bps Operational Risk Management Management Essay

Analysis Of Bps Operational Risk Management Management Essay British Petroleum PLC (BP), one of the worlds largest oil and gas companies, is headquartered in London, United Kingdom. It provides its customers with fuel for transportation, energy for heat and light, retail services for gasoline and petrochemical products for everyday items (About BP, 2011). The Companys operations primarily include the exploration and production of gas and crude oil, as well as the marketing and trading of natural gas, power, and natural gas liquids. At present, BP employs over 80,000 people and operates in more than 100 countries. It produces approximately 3.8 million barrels of oil per day and has 22,400 service stations worldwide (BP, PLc Swot Analysis, 2010). In 2010, the Company incurred incredible losses from the Deepwater Horizon Oil Spill Incident in the Gulf of Mexico due to lack of oversight and control of operational risks (McDonald, BP Oil Disaster Breaks Records, Puts Spotlight On Risk Management Failure, 2010). The Incident has caused disastrous biological environment, 13 peoples deaths and 17 others injuries (McDonald, BP Oil Disaster Breaks Records, Puts Spotlight On Risk Management Failure, 2010). Immediately after the Incident, the Companys risk management practices were investigated. The scrutiny ultimately led to the dismissal of its CEO, Tony Hayward (McDonald, BP Oil Disaster Breaks Records, Puts Spotlight On Risk Management Failure, 2010). In this report, we will explore how BP unsuccessfully managed its operational risks prior to the Incident, and the strategic steps that have been taken in order to mitigate the losses and prevent a similar crisis from happening again. Reasons that Led to BPs Exposure to the Incident According to McDonald, the Incident was mainly attributable to the poor operational risk management of the corporate executives who placed a low priority on the safety issues (McDonald, BP Oil Disaster Breaks Records, Puts Spotlight On Risk Management Failure, 2010). McDonald also mentioned that Hayward appeared to know nothing about the front-line operations in the Company (McDonald, BP Oil Disaster Breaks Records, Puts Spotlight On Risk Management Failure, 2010). Furthermore, BPs history of oil spill incidents demonstrated its poor operational risk management in the past years. These previous tragic incidents included the U.S. refinery explosion in 2005 and the Prudhoe Bay oil spills in 2006 and 2007 (Fineberg, 2007). Since the Company continued to ignore the safety issues and risk management even after these incidents, a more serious Incident in the Gulf of Mexico has occurred. Finally, BP failed to inspect the oil rig on a monthly basis as prescribed in the government regulation (Strickler, 2010). A government inspection report revealed that BPs Deepwater Horizon oil rig had missed 16 inspections in total since January 2005(Strickler, 2010). Financial Losses and Reputational Damage following the Incident Following the Incident, BP was required to reduce planned capital expenditures and increase asset disposals in order to provide additional liquidity (BP p.l.c, 2010). Moreover, a total pre-tax charge of $40.9 billion was recognized during 2010 (BP p.l.c, 2010). However, BP is still uncertain about the total amount that will ultimately be paid. The Company is currently being charged in a number of lawsuits that could lead to substantial costs (BP p.l.c, 2010). These costs may include the amount of pending and future claims, the potential expenses of implementing remedies sought in the various proceedings, and the amount of fines ultimately levied on BP (BP p.l.c, 2010). As seen in Appendix A, Moodys Investors Services and Standard Poors have downgraded BPs credit ratings immediately after the Incident. Although there have been slight improvements ever since, the current credit ratings are still lower than they were immediately before the Incident. The lower credit ratings prompted a large number of investors, who were holding BPs US Industrial Revenue/Municipal bonds, to exercise their option to tender the bonds for repayment (BP p.l.c, 2010). This caused BP a total repayment of $2.5 billion (BP p.l.c, 2010). The lower credit ratings could also limit the Companys access to new financing. In addition, the Incident has led to a significant drop in BPs share price. On June 25 of 2010, the share price went down to the lowest point of $27. 02, as compared to $60.48 on April 23 of 2010, the day of the Incident (BP plc (ADR) (Public, NYSE:BP) ). Along with the financial losses, the Incident has damaged BPs reputation, which may have a long-term impact on the Companys ability to build business relationships with new counterparties and access new opportunities (BP p.l.c, 2010). Moreover, the current counterparties, concerned about the additional financial and business risks following this Incident, may require the Company to provide collateral or other forms of financial security for its obligations (BP p.l.c, 2010). Risk and Liquidity Management After the Incident, BP has taken preventative measures to mitigate future unexpected events related to poorly-managed operational risks (McDonald, All Road Lead to CEO, 2010). On September 29 of 2010, the new CEO, Bob Dudley, announced a plan to establish a new safety division with sweeping powers to oversee and monitor the Companys operations around the world (BP Creates New Safety and Risk Division, 2010). The new division has been given the authority to intervene in all aspects of BPs technical activities. The divisions experts will be embedded in BPs operating units, including exploration projects and refineries. These experts have the responsibility to ensure that all operations are carried out in compliance with government regulations and auditing standards (BP, 2010). In order to further reinforce this new practice, Dudley has requested the head of the safety division to report directly to him so that all information regarding the Companys current operational risk status can b e conveyed in a timely manner (McDonald, All Road Lead to CEO, 2010). BP has also reinforced its accountability of risk management by restructuring its exploration and production segment from a single business into three separate functions-exploration, development and production (BP, 2010). This makes it easier for BP to monitor each function separately. To increase available liquidity, BP cancelled the ordinary share dividends in the first three quarters of 2010, secured additional bank lines totaling $12 million and announced its intention to sell up to $30 billion of assets (BP p.l.c, 2010). Conclusion Prior to the Incident, BPs executives overlooked the necessity of operational risk management. This made the Company vulnerable to operational risks. Even after the two oil spills between 2005 and 2007, BP still did not take effective measures to improve its risk management practices. Fortunately, the problem has finally been recognized by Dudley, who has initiated constructive plans to enforce operational risk management across all divisions in the Company. Appendix Appendix A: A comparison of BPs Credit Ratings before and after the Incident Before Immediate After Current Moodys Investors Service Aa1 (stable outlook) A2 (negative watch) A2 (stable outlook) Standards Poors AA (stable outlook) A (negative watch) A (negative outlook) Source: BP p.l.c. (2010, December 31). Annual Report and Form 20-F 2010. Retrieved March 20, 2011, from BP Global: http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Annual_Report_and_Form_20F.pdf

Perceptions of California

California is a well-known and acknowledged state of the US and had a long history that affected many people ranging from the European explorations where they came in contact with Native Americans. The American domestic policies that had a profound effect on their future existence on Earth to the Japanese internment camps where hundreds of thousand Japanese Americans lost their homes. There are other events that affected people's perception:The Mexican- American War for the conquest of California, the California Gold Rush, history of slavery in California, and many more.It is not just the history that affected people's perception, but what is portrayed in the media and entertainment industry. TV shows like Beverly Hills: 90210, The O. C. , etc. Different people have different perceptions about California, even Californians have varied opinions due to the incidences that happened in the state. It has changed how they see themselves in the state, how they think the state sees them, and also how their life in California affected their identity. In the essay â€Å"Invisible Men† by William Langewiesche, he talks about life as an illegal immigrant.The illegal immigrats didn't have the opportunity to come legally or for the luxuries, they came to the US to make a better life and to help their family back home. Some immigrants might think once they get across, they get to live like they deserve. But when they actually do cross, it's not what they expected. They cross the border finding out California is a hell hole and is insanely hard to become successful. They find out that they're not wanted by the natives living in the state, they have to live as vermin cowering in the dirt, hiding from the predators known as the border patrol.They have to scavenge for jobs to make ends meet. â€Å"Living in twilight lives camped out beneath freeway underpasses and deep inside barely accessible canyons, a few thousand undocumented laborers hide out from the U. S. Border Pa trol by night while seeking-minimum-wage work by day. † (130). The American people see the illegal immigrants as parasites leeching from Americans, taking jobs from the American people for less pay because they are desperate to find better employment opportunities.They would get low-paying jobs (usually two dollars an hour), and that's still better then what they would receive in their homeland. What American would be willing to work for two dollars an hour as a janitor or maid? Not many. In the essay farmers would hire illegal immigrants just because they would work for less and are essential for their survival. â€Å"Most of the remaining farms in San Diego County are just such family operations, unable to survive without illegal workers. † (137). â€Å"The small farmers are not necessarily bad people, but they lack the economies of scale.Rather than comply with burdensome regulations pertaining to the living conditions of farm workers (whether illegal immigrants or not), they have simply dropped out of the system† (137). The main goal of the illegal immigrants in California is to survive. They don't look like they have any goals of living in a huge house with luxuries. Their main priority is trying to support their family in Mexico, avoid the border patrol, and having enough money to survive. â€Å"They were paid by check every 2 weeks, and if they did earned about nine thousand dollars a year, of which they might mail six thousand dollars to their families in Mexico. (138). In the essay â€Å"The World of Our Grandmothers† by Connie Young Yu, she talked about what life was like as a Chinese immigrant. No doubt, both minority groups had it rough in America and even though they were both treated as inferior beings, they would still rather live in America than their home country. They both found living in California as a constant struggle for survival. Unlike immigrants from Mexico, Chinese immigrants were allowed to go to the U. S . But they had to go through physical examinations and interrogations to determine their right to live in the U.S. Also before Chinese immigrants were accepted by the U. S. In the 1800s. The population was growing so much and the immigrants who kept coming in are unskilled workers that work for less. It made the American's attitudes become negative and hostile against the Chinese. In the essay she would talk about her grandpa trying to escape from a group of whites who tried to stone him, he ran so fast that he lost his hat. Life was more difficult as a Chinese immigrant because they would get murdered or assaulted by whites. Such unprovoked assaults upon unoffending Chinamen are not a rare occurrence†¦ † (P101). Females would be sold into slavery by their desperate parents. â€Å"Females are a little better than slaves, they are looked upon as merchantable property , and are bought and sold like any other article or property. † (P. 101). Some would rather stay in China and be killed during infancy than be born in the U. S. Later they made acts like the Chinese Exclusion Act where they cut down the ratio of Chinese men and women, which made the population drop dramatically.Mexican immigrants who got their citizenship got to stay in the U. S. but for Chinese immigrants they would lose their U. S. Citizenship because of the exclusion acts. Some acts would make any U. S. born woman who married to a man â€Å"ineligible for citizenship†. They would have to give up their birthright and be deported back to China. Both Mexican and Chinese immigrants had it difficult because of the time they came to the U. S. and how they got there. For the Chinese they came in the 1800s where slavery was still allowed and people were closed minded back then.Some Mexican immigrants got into the America by crossing the border illegally, So they had to now avoid the border patrol and try to get a decent job with their status. They made it hard on themselves. How ever, the Japanese started immigrating to America during the mid 1900s where they they had easier than they Mexicans and the Chinese, because slavery was abolished by then and many other things that were factored in. But they had a cruel twist of fate, where their home country attack Pearl Harbor during World War II.It caused paranoia all over America and resulted in the containment of all Japanese Americans. In Jeanne Wakatsuki Houston and James D. Houston essay, â€Å"Manzanar, U. S. A. † It talks about life as a Japanese American during World War II. After the bombing of Pearl Harbor, Japanese Americans were rounded up and sent to detention camps. Life in the camps wasn't hard at all, they had swimming pools, schools, boy scouts, churches, etc. They did not try to rebel against the camps they just went with the flow.They went by the phrase â€Å"Shikata ga nai† which meant â€Å"It cannot be helped, It must be done† They had the mentality of going with the fl ow. Life wasn't difficult in the camps, everybody worked together and made it a perfect little community. By comparison, life was easier for the Japanese then the Chinese and the Mexican Immigrants because even though the Japanese Americans lost their homes, they were given reparations of $20,000 and an apology. They did not have to hid from the border patrol or get deported back to their country.There are many events that happened in California. People perceptions of California solely depends on what they experienced in the state. It shapes how they think and how they are. Mexican and Chinese Immigrants see California as a hellhole, where you are basically the scum of the earth. Survival was the main goal they were trying to achieve. However the Japanese lived easy lives until the bombing of Pearl Harbor. But even though they were rounded up and sent to camps, they still went with the flow. They knew it had to be done.

Why School Environment Is Important

What are the New Hampshire state requirements for physical environment of schools? What are the federal requirements for the physical environment of schools? What are some of the best practices for schools about the physical environment? What resources or tools for schools are available on the physical environment? Whom do I contact for more information?The physical environment of school buildings and school grounds is a key factor in the overall health and safety of students, staff, and visitors. School buildings and grounds must be designed and maintained to be free of health and safety hazards, and to promote learning. Studies have shown that student achievement can be affected either positively or negatively by the school environment. Policies and protocols must be in place to ensure food protection, sanitation, safe water supply, healthy air quality, good lighting, safe playgrounds, violence prevention, and emergency response, among other issues that relate to the physical envir onment of schools.What are the New Hampshire state requirements for physical environment of schools? The State Fire Code under RSA 153:5 and the State Building Code under RSA 155 establish the basic requirements for the construction, operation, and maintenance of school buildings. A number of state agencies including the Department of Education, Department of Health and Human Services, Department of Environmental Services, Department of Safety, Department of Labor, and others enforce numerous statutes and administrative rules that address topics such as: Alcohol, tobacco, and other drugsFood service. Hazardous materials such as asbestos, lead, mercury, radon, etc. Laboratories and shops. Pesticides. Playgrounds. Safe drinking water. Sanitation and housekeeping. School emergency response plans. Standards for school buildings. Traffic safety.WeaponsWhat are the federal requirements for the physical environment of schools? There are primarily two federal laws pertaining to the physical environment of schools: The Americans with Disabilities Act (ADA) enforced by the U.S. Department of Justice The Asbestos Hazard Emergency Response Act (AHERA) enforced by the U.S. Environmental Protection Agency There are other federal environmental and public health laws that apply to schools. For the most part these have state equivalents that are administered by the appropriate state agencies. One thing to be noted is that public schools in New Hampshire are not subject to the jurisdiction of the U.S. Occupational Safety and Health Administration (OSHA). Workplace safety for public employees is administered by the NH Department of Labor. What are some of the best practices for schools about the physical environment? 1. Every school should have a health and safety committee comprised of administratorsclassroom teachers parents maintenance personnel school nurse industrial arts, studio art, and family and consumer science teachers laboratory science teachers food service personne l school resource officerThe committee should develop and ensure the implementation of plans for safe, healthy and well-maintained school buildings and grounds. The committee should be empowered to deal with on-going maintenance and repair issues, as well as on-going and emerging health or safety issues related to the physical environment of schools and school grounds. 2. Every school should practice emergency response drills for a variety of likely hazards and situations.Schools should implement programs to maintain good indoor air quality such as the EPA's Tools for Schools program. 4. School maintenance staff should practice Integrated Pest Management (IPM) and cleaning for  health also known as green cleaning. 5. Schools should use automated systems such as Healthy SEAT and/or a Computerized Maintenance Management System (CMMS) to record and analyze maintenance issues and trends. This may be done at the district level. 6. Schools should establish procedures for managing chemic als used in science classes to include storage, reordering, and disposal.

The impact of misrepresentation, mistake, duress and undue influence on the validity of a contract The WritePass Journal

The impact of misrepresentation, mistake, duress and undue influence on the validity of a contract The impact of misrepresentation, mistake, duress and undue influence on the validity of a contract ) ‘Chandler v Cape plc: Is there a chink in the corporate veil?’, Health and Safety at Work Newsletter, vol 18, no 3. Gulati, B., (2011) Intention to Create Legal Relations: A Contractual Relationship Necessity ot an Illusory Concept, Beijing Law Review 2, Scientific Research. French, D. (2011) Company Law, 28th Edition, OUP Oxford. Hopt, K. L. (2001) ‘Company Groups in Transition Economies: A Case for Regulatory Intervention?’, European Business Organisation Law Review, vol. 2, no. 1. McKendrick, E., (2011) Contract Law. Palgrave MacMillan. 9th Edition. Poole, J., (2006). Casebook on Contract Law, 8th Edition, OUP Oxford. Saha, T. K., (2010) Textbook on Legal Methods, Legal Systems Research, Universal Law Publishing. Smith, S. A., (1997) Contracting Under Pressure: A Theory of Duress, 56 Cambridge Law Journal 2. Talbot, L. (2007) Critical Company Law, Routledge. Walden-Smith, K., (2005) Protecting the Vulnerable – The Court of Appeal’s Decision in Macklin v Dowsett, Stone Buildings News, Available [Online] at: 5sblaw.com/images/file/5SB_Newsletter_4.pdf Watcher, V. V. (2007) The Corporate Veil, New Law Journal, vol. 990, no. 7218. Wildman, E., (2009) Setting aside a contract for mistake, The In-House Lawyer, Available online at: inhouselawyer.co.uk/index.php/contract/6101-setting-aside-a-contract-for-a-mistake //

Dutch Schultz essays

Dutch Schultz essays Arthur Flegenheimer was born on November,6 1902 in the Bronx. His parents were both German Jews. Growing up in the Bronx, he early joined a local street gang for protection. He worked hard in order to make a name in the gang. He attuned public school until his father left the family. Then started working in different jobs, soon realizing, that he couldn't get rich and happy with common legal work. He began to go to the Criterion Club, were he made friends with Marcel Poffo, a local top criminal. He began gain Money form people who refused to pay Poffo, always trying to impress his mentor. At the age of seventeen he received his only sentence. He went to jail for 15 months for stealing. He tried break out and received another 3 months of jail. After his return to the Bronx be started to use the name he later became famous under, Dutch Schultz. By the mid of the 1920s he realized that bootlegging was the chance to make big money. He started to get involved into the beer business, as a strong arm goon, and later drove beer trucks in larger operations, of the legendary Jack Legs Diamond. At that time he and famous Chares Lucky Luciano were partners in Diamonds gang. In the beginning of 1928 Schultz was bar tendering, in the speakeasy of one of his old friends, Joey Noe. He gained a brutal reputation for is temper. Noe wanted him as partner for their own bootlegging business. Soon they were on their way to build a beer empire in the Bronx. They started to buy their own trucks, and in Frankie Dunn, a brewery owner in New Jersey, a reliable partner. As their business grew bigger and bigger they realized that they could improve the profits further if they also start to deliver the other speakeasies, as well. But many owners had their own little business, and refused to buy from Schultz and Noe. Schultz gave out warnings like: Buy it ore, else!, to those, who wou ...

Legal Issue Paper Research Example | Topics and Well Written Essays - 1000 words

Legal Issue - Research Paper Example There may be any number of reasons for which the parents, or the single parent, may be unable to educate their child (No Child Left Behind). The aim and purpose of NCLB is to ensure the child's education through primary and secondary schools. This aim and purpose is accomplished in case the parents are doing well together. However, social conditions now are such that there are increasing numbers of single parent managing a child or children. There are also cases where either both or one of the parents are drug addicts. In such cases, it becomes difficult for the child to study. His concentration level is low and he is disturbed. The law steps in to take charge of the child in case there is nobody else among close relatives to look after the child. After the parents, the next person closer to the child is the teacher. The teacher understands the strength and weakness of the child being entrusted with the responsibility of teaching and guiding the child. In the circumstance, it is also necessary for the teacher to keep herself abreast the laws that govern her relationship with the child. No two children are equal. And there are children who may have behavioral problems and/or problems connected to their studies. Also, there are children who live in the regular family with their parents and there are children who live in the care of foster parents. ... The teacher who is knowledgeable about the legal requirements and implications in bringing up a child has an edge over the teacher who has no knowledge about the legal necessities. Laws can be powerful tools to meet the educational needs of children in foster care. However, like any tools, if the teacher does not know how to use them, they do not provide much help. This does not imply that the teacher has to be so conversant with law that she is as good as any practicing lawyer. But it does mean that she must have enough knowledge to understand the child welfare system so that the educational need of the child is better served. The teacher must take special care to understand that children in foster care receive the same right to education as all children, understand what laws have specific provisions for children in foster care, teenage girls who become pregnant before completing high school cannot be segregated in special programs and they cannot be excluded from school entirely. Moreover, the Family Education Rights and Privacy Acts (FERPA) of 1974 provides rights to parents to inspect and review their child's education records maintained by the school, to a hearing challenging what is in the student's education record, and to not have education records released to third parties without the written consent of the parent. Most states provide for criminal sanctions for parents whose children do not attend school within the required ages. Secondly, federal laws related to education have financial incentives attached to encourage state compliance in educating the children of their state (Child Law Practice). The child and the state The role of parents or foster parents becomes secondary in the matter of educating the child. This is not to say that the role of

Prompt. Bridging the gap Essay Example | Topics and Well Written Essays - 500 words

Prompt. Bridging the gap - Essay Example fluenced significant transformations in ways of life and in validating that this unifying force confirms universality of responsibility with one another. In the United States, a country known to have espoused diversity in culture, a quick research on the predominant religion in the country revealed that Christianity still prevails with 78.4% of the respondents acknowledging their religious affiliations (The Pew Forum on Religion & Public Life). More interesting, the religious affiliations of members of the United States congress have been disclosed that more than half are Protestants with the rest being diversely affiliated to other religions and only 5 out of 435 members not specifying any religious membership (The Pew Forum on Religion & Public Life). In this regard, one strongly believes that religion plays a crucial factor in influencing diplomatic policies and in facilitating resolution of political conflicts within the local and international sphere. When government leaders have signified and acknowledged affiliations to religious groups, as verified and attested within the chambers of the 111th congress, decisions regarding foreign policies, resolution of conflicts, and guiding principles towards governance are most likely to be defined and influenced by the religious teachings and traditions that are imbibed. For example, as cited by Albright, during her 1981 visit in Poland, significant changes were observed regarding the form of government until such time that Pope John Paul’s visit influenced the people to boldly profess their Catholic faith and openly express their intent to be liberated from the bonds of communism. Despite the government’s declaration that Pope John Paul was to be regarded an enemy of the state due to the convictions and threats posed by his teachings, the firm belief and adherence to faith exemplified by the greater majority, remarkably led to the liberate Poland, â€Å"brought down the Be rlin Wall, reunited Europe, and transformed