A real case risk management analysis - Essay Example

perience in the provision of helicopter services in over 30 countries, on all seven continents and in most of the major offshore oil and gas producing regions of the world. (Company Annual Report, 2007). Its major operating units include the United Kingdom, Norway, Netherlands, South Africa, Australia and Canada. The company’s European and Global Operations segments enable it to provide helicopter transportation services to the oil and gas industry for production and exploration activities. (Company Annual Report, 2007).

In addition, the company also provides helicopter transportation services for emergency medical services (“EMS”) and search and rescue (“SAR”) activities, as well as ancillary services such as flight training. Its Heli-One segment, one of the world’s largest non-original equipment manufacturer support company provides repair and overhaul (“R&O”) services, aircraft leasing, integrated logistics support, helicopter parts sales and distribution, as well as other related services to its flight operations and third-party clients around the world.

(Company Annual Report, 2007). The company’s operations depend largely upon the level of activity in the oil and gas industry. The activities are therefore affected to varying degrees by trends in oil and gas prices. Traditional wisdom detects that oil and gas prices have been very unstable in the past and continue to depend to wide fluctuations to changes in the supply and demand for oil and gas, market uncertainty and a variety of additional factors beyond the company’s control. (Company’s Annual Report, 2007).

It is difficult for the company to predict the movement of future oil and gas prices. Prolonged declines in oil and gas prices could adversely affect Helicopter’s activity in support of exploration and to a lesser extent, production activity and, therefore, have a material adverse effect on the business, financial condition and results of operations. (Company’s Annual Report,