ABSTRACT

This study aims at determining the effect ofrisk management on the organizational efficiency of Shell Petroleum Company ofNigeria. The specific objective of the study are as follows, To determine the extent to which risk tolerance practices influence the performance of shell petroleum, To determine the extent by which geological risk management practices influence the performance ofshell petroleum, To establish the extent to which operational risk management practices influence the performance of shell petroleum, To examine the extent to which governance risk management practices influence the performance ofshell petroleum. Following the nature oj the study, the researcher made use ofprimary data collectedfrom distribution of questionnaires. The population of the study consists of 320 staff in the health and safety department in shell petroleum and the researcher obtained the sample size of178 using the Taro Yamane formula. Instrument ofdata collection was primarily questionnaire and interview. Out of 178 copies of the questionnaire distributed 138 were returned while 40 were not returned. The method ofdata analysis adoptedfor analyzing the questionnaire comprises ofthe descriptive and inferential statistics. The descriptive is made up ofthe mean, simple percentages andfrequencies which was used to analyze the demographic status of the respondents while the inferential statistics include the correlation for texting the hypothesis. Having analyzed the data the followingfinding were made, Risk Tolerance management practices has a negative relationship with organizational efficiency. This relationship however is significant, Geological Risk management practices has a positive and significant relationship with organizational efficiency in Shell Petroleum Company, Operational Risk management practices has a positive and significant relationship with organizational efficiency in Shell Petroleum Company, Governance Risk management practices has a positive and significant relationship with organizational efficiency in Shell Petroleum Company. The Conclusion ofthe study shows that the degree of risk tolerance accepted by an organization is inverse to their organizational efficiency. This means that organizations must to a possible extent tighten their risk tolerance in order to achieve their organizational goals. Thefindings made while carrying out this studyput this researcher in a good stand to suggest the following recommendations which states that Strategic considerations is required when making efforts to boost profitability at the expense of risk management, as it has been shown that risk tolerance is a bane to organizational efficiency, that There is a need to consider various environmental factors and stakeholders when relaxing or tightening risk management policies in an organization, and also advocate that continuous training be given to the employees ofthe organization to always bring to their consciousness the danger and hazard that will emanatefrom unprofessional actions in thefield ofoperation.