Risk and Reputation in the Oil and Gas industry
05 Nov 2014 4:04 am by Mark Dunn
Prophet's 2010-2011 Corporate Reputation Study found that in both the UK and the US, consumers held the oil and gas industry in the lowest regard of all the industries surveyed. The studies are particularly revealing of general consumer sentiment towards different industries and the difficulties faced by the oil and gas industry. The results revealed the technology industry to be number one for corporate reputation, even though there are frequent media reports of poor supply chain monitoring and allegations of harsh working conditions in countries manufacturing components. The full PDF report can be found here.
Mitigating reputational risk
With the increasing focus on sanctions (read our earlier blog) placed on some of the largest suppliers of global oil and gas, these organisations will need to go above and beyond when considering business relationships. All potential partners, intermediaries, suppliers and customers must satisfy anti-bribery and corruption (ABC) and anti-money laundering (AML) regulations. For large energy companies, independent, objective reporting is essential if report integrity and audit track record are to be maintained to a sufficient standard.
Enhanced due diligence can help organisations uncover subtle dangers like hidden ownership structures and links with government officials, as well as some of the more immediately obvious issues like allegations of corrupt or criminal practices.
Political & Country Risk Reporting
When carrying out due diligence, identifying any enhanced risks associated with particular political organisations and countries should be fundamental for any company trading globally. For organisations in the oil and gas industry, many key producers of raw fuel may be on sanction or watch lists. In these scenarios, in order to properly protect personnel, reputation and business operations, more in-depth and country specific checks need to be carried out.
Ensuring fundamental compliance and due diligence strategies are implemented enables companies to mitigate reputational risks. The benefits of strict adherence to a consistent and efficient third-party due diligence process extends to operational efficiency, reduced corporate insurance premiums and a competitive edge in a complex, global and less accessible market.
Top FTSE 100 insurance, financial services and blue chip multinational companies use LexisNexis for customer due diligence, client screening and corporate security. With the increased need for organisations to implement effective risk-based due diligence procedures, we offer a range of tools for finding information on people, companies and countries and for satisfying regulators that appropriate checks have been carried out. Whether you are looking for information on clients, suppliers or partners or checking for further company information, legal histories or for ongoing monitoring purposes, our tools provide one convenient resource for timely access to global information. Read more here.