Russia

Details

  • Service: Audit, IFRS
  • Industry: Oil & Gas
  • Type: Publication series
  • Date: 6/5/2014

«Until such time as» an article by Anton Oussov (“Neft Rossii” magazine, issue 5-4, May 2014) 

In his next article in the author’s column in the “Neft Rossii” magazine Anton Oussov, Partner and Head of the KPMG Oil & Gas practice in Russia and the CIS, reasons the necessity to build an effective system for monitoring and managing risks in the oil & gas companies.

“Given the global geopolitical uncertainty and recent international sanctions against Russia, Russian oil & gas industry may face a number of unforeseen obstacles. In this case the availability of effective system for monitoring and managing risks is not just a necessity, but rather the crucial aspect for oil & gas companies’ performance,” Anton says.

 

Price, foreign currency and interest risks create a triad of market risks in oil & gas industry. Oil & gas companies also face operational risks during their life cycles. These operational risks may be of the same scale or even exceed market risks. “Realizing all the importance and complexity of managing different risks, oil & gas companies in Russia and the CIS try to understand and set up the respective risk management processes,” Anton continues. “At the same time in practice most Russian companies have no full-fledged process for efficient risk management. Nevertheless, the situation is not hopeless, if there is a due attention from companies’ executives and involvement of qualified professionals in the process of risks’ management, oil & gas companies may receive significant competitive advantages which will facilitate capitalization growth, reaching targeted profitability levels and prevent from unreasonable use of resources even in the conditions of uncertainty,” concludes Anton.