Controlling refinery risk management

Abstract

<p>The purpose of this paper is to explore the determinants of internal control and propose techniques that can be utilized by the crude oil refiner in designing, implementing and controlling a pro-active risk management program.</p> <p> Since the introduction of volatility into the oil business in the mid-1970s, pro-active risk management the has become a popular tool for petroleum industry management to effectively reduce the firm1s exposure to price risk. In order to use pro-active techniques, one must thoroughly understand the nature of the business and the tools available. Pro-active risk management is a continuous process of pricing, buying, selling, trading and scheduling of various products to balance supply and demand.</p>