The Pinwheel Risk Management Action Framework to BP PLC

Step 1: Evaluating Business IntelligenceTo implement the pinwheel risk management, BP must first understand the global business trends and conditions in the oil and gas industry. One of the tools the company can use to gather business intelligence is PESTEL, a tool which helps to determine the political, environmental, technological, social, environmental, and legal factors which may have impact onthe oil and gas industry.

Step 2: Refining the Strategic Purpose and VisionThis step will provide the BP PLC with a chance to revise its purpose, strategic priorities,aspirations, and vision. There must be consistency and clarity of purpose in the company’s visionconcerning its risk management priorities. The BP PLC’s vision is to attain security, respect, excellence, courage, and create a cohesive team (BP, 2017). This must be linked with the risk management initiatives to be successful.

Step 3: Defining Goal and Aspiration

The BP must have clear goals and aspirations that are consistent with its risk managementobjectives. For example, the company must define security as its major aspiration and goal in theindustry. This will enable it to develop appropriate risk management objectives.

4: Determining Strategic PrioritiesThe strategic priorities set by the top management of BP will become the pillar to all of the subsidiaries that set it to achieve its goals and aspirations (Sammer, Witt & Bacon, 2015). The strategic priorities will direct the allocation of resources.Step 5: Identifying Strategic PrioritiesBP must identify those critical initiatives that are the most important and those which can ensure that it will attain its purpose, aspirations, and vision. These initiatives must be supported by the top management and leadership.

Step 6: Integrating Project, Plan, and BudgetAfter developing detailed projects, which need risk management efforts, BP PLC will then incorporate them into their long and short-term plans and develop a budget for accomplishing the projects. During the implementation of these projects, it is important to ensurethere are collaboration and team effort from different departments in the organization.

Step 7: Monitoring Critical InitiativesEvaluation and monitoring the projects to manage the risk and their overall impacts on the organization must be an ongoing process at BP PLC. This step will enable the company to identify the potential risk and how they can be avoided. Step 8: Assessing the Strategic PerformanceFinally, the BP PLC executive should have a tailored information strategy concerning how to assess the strategic performance of the organization frequently. The strategic performance should involve providing essential information required monitoring and evaluating strategic execution of the organization. Also, it must be able to identify the risk to the achievement of the long-term organizational objectives. Finally, it must be able to identify the risks related to compliance and reporting requirements.