Analysis of Risk Management Practices in the Oil and Gas Industry in Ghana. Case Study of Tema Oil Refinery (Tor)

Risk management refers to an interactive process consisting of steps, which when undertaken in sequence, enable continual improvement in decision making. The aim of risk management is to obtain understanding by all parties and agreement around what the risks really are and how they will be managed to improve performance, increase the value of firms and reduce financial distress.We used primary and secondary data in our analysis The study identified risks confronting Tema Oil Refinery (TOR) as instability in global oil prices, depreciation of the cedi against major currencies, health and safety, political interference, environmental pollution, brain drain, shortage of crude oil, huge debts as a result of subsidizing of petroleum products by government and default on the part of oil marketing companies to pay for products and high operational risks.Other challenges as apathy on the part of staff to abide by safety rules was identified. TOR incorporates risk management in their strategic plan and have operations and Audit risk department but have been battling with effective implementation. Made recommendations to government and management of TOR on how to overcome the problems in implementing risk management in order to achieve the goals of the only refinery in Ghana