Operational risk management impact on the performance In petroleum sector of Pakistan

Abstract

The study evaluates the impact and relationship of the operational risk management on performance in petroleum sector of Pakistan. In this study operational risk is divided into three of its factor including people, systems and internal process. In Pakistan there are 19 petroleum industries out of which three companies are taken into account for analysis. This study is comprised of quantitative analysis. Primary data is collected through the questionnaire which is then analyzed by SPSSS software to generate results and secondary data is selected from the annual reports of the selected companies by taking nine years gross profit i.e. 2010 to 2018. Results obtain from the analysis indicates that there is positive relationship between operational risk management that includes people, systems and process on organizational performance. These results show that more the risks managed efficiently and effectively in the organization, the performance along with the profitability of the company increases.