Those Responsible for 90% of World's Oil Reserves Express Concern about
Their Full Understanding of the Emerging Risks They Face
NEW YORK, April 24 /CNW/ - Less than 10% of National Oil Company (NOC)
leaders surveyed by Marsh Inc. strongly feel they have a full understanding of
the risks they face - and how to effectively manage them.
This finding was contained in a new study released today by Marsh, the
world's leading risk and insurance services firm, examining risks and
operational challenges among state-owned oil enterprises. Marsh gathered much
of the data from a recent groundbreaking global risk advisory meeting held in
Dubai and attended by approximately 250 leaders from NOCs, government and
"The Impact of Risk on National Oil Companies," available at
www.marsh.com, also reveals a strong desire by NOC leaders to understand risk
better and find better ways to share related best practices. More than 90% of
the NOC leaders Marsh polled agreed that more discussion forums were needed.
"The spectrum of risk that business leaders face today is far more
complex than ever before," said Brian Storms, chairman and CEO of Marsh. "Not
too long ago, the top concern for an NOC might have been a fire at a refinery.
But the study we conducted at the Marsh National Oil Companies Conference in
Dubai shows that newer risks - such as the impact of climate change - are
moving near the top of the list."
Storms added: "As the world's premier broker, we will continue to provide
clients with unrivaled excellence in insurance placements. But we'll also
deliver the best in business risk advice to help clients like NOCs go beyond
risk transfer and turn their potential liabilities into competitive
Andrew George, Marsh's Marine & Energy leader in Dubai, said: "We're
hopeful the many eye-opening findings contained in this new research will help
accelerate an open dialogue on the risk issues and business challenges NOCs
face. Our mission is to promote greater awareness and collaboration among
companies that are assuming critical leadership roles in the global energy
Marsh also cited other potential risks faced by national oil companies,
including the potential for a terrorist act to halt distribution, the effects
of a major natural disaster on production, the potential vulnerability of
supply chains - especially due to the threat of avian flu, as well as a
variety of operational risks, reputation risks, strategic risks and financial
In response to the findings within the report, Marsh said it will again
sponsor and lead its second annual risk advisory conference for NOCs in
February of 2008.
Marsh has 26,000 employees and annual revenues approaching $5 billion.
The firm provides advice and transactional capabilities to clients in over 100
countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global
professional services firm with approximately 55,000 employees and
approximately $12 billion in annual revenues. MMC is also the parent company
of Guy Carpenter, Kroll, Mercer, and Putnam Investments. MMC's stock (ticker
symbol: MMC) is listed on the New York, Chicago, and London stock exchanges.
MMC's Web site is www.mmc.com. Marsh's Web site is www.marsh.com.
For further information:
For further information: Marsh Inc. Neal McGarity, 212-345-1470 Mobile:
347 324-8055 Neal.McGarity@marsh.com or Al Modugno, 212-345-2448