Contingency Plan Evaluation Worksheet

University of Phoenix Material

Appendix B: Contingency Plan Evaluation Worksheet

Research and locate two contingency plans using a search engine of your choice from the Internet, your texts, or the University Library.

Complete Appendix B: Contingency Plan Evaluation, using the information found in your search.

Write your responses so that each contingency plan identified and addressed does not exceed 700 words. The entire worksheet should not exceed 1,400 words.

Format your contingency plans using complete sentences, not phrases.  

Use  a minimum of three sources (with in-text citations) within your evaluation. The sources must be identified in an APA correctly formatted References page attached to the evaluation.

Click the Assignment Files tab to submit your assignment.

Contingency Plan and Source Plan A: Plan B:
Provide a brief overview of the organization the contingency plan serves. Saudi Aramco is the leading company in oil and Gas in the United States. The company was founded in 1933 and it was called the Standard Oil of California (Socal). After the second world war, the company changed its name to Arabian American Oil Company( Aramco) Saudi Arabia came across a time of growing Arab nationalism.These developments led to the rise of desperation among the Saudis for lack of adequate stake in the arising demand for oil in the world economy (Abdulaziz H. Abuzinada, 2008). Subsequently, the Saudi government demanded to take control of half the oil company. Later in 1973, the government nationalized 25% more of Aramco and in 1980 the government took full control of the company.In 1988, the company was given its current name (Saudi Aramco). Up to date Saudi Aramco manages the world’s largest proven crude oil. The organization’s headquarters is located in Dhahran and has more than 55,000 employees. The organization has an aim of solving some issues that are a threat to the to the global energy industry.
Describe the risks the plan identifies and covers. The contingency plan of Saudi Aramco identifies various risks that arise from transportation of oil. First is the environmental damage or pollution. This is the major risk that is involved in the transportation of oil. The risk emerges as a result of oil spillage. Usually, there are leakages that take place when oil is transported may be due to the poor quality of tankers used or even leakages that occur from the accident economy (Hatim Al-Bisher, 2011). Oil spillage causes environmental pollution and degradation. When oil spills into the soil it tampers with it and hence not healthy for agricultural purpose. Second the Organization identifies the risk of economic damage that arises from oil spillage. The organization identifies economic damage as a risk involved in oil spillage because it results in losses in the organization. Oil spillage can lead to the inadequate supply of oil in a given area if there is oil spillage during transportation. Hence, the losses that occur and the inadequate supply lead to economic damage. There is also another risk though not very crucial that are identified by the organization. The risk of public health from oil spillage is mostly posed to the workers. This health risks involved include air, water and seafood contamination. If the water is contaminated with oil, it can cause health problems such as eye and skin irritation. When the air is contaminated with oil, it can lead to respiratory problems. Some of the symptoms of health problems that arise from oil spillage include: psychological problems, such as anxiety and post-traumatic stress disorder, among workers and community members.
Does the plan adequately cover the risks identified? The plan does not cover the risks identified adequately because the risks are not completely abolished but rather minimized. We still have cases of oil spillage that continue to exist and subsequently affect the environment, economy and also pose a threat to public health. The plan only aims at minimizing the risks only because in the event of oil spill occurring the government, and industry provides an oil spill contingency plan supported by equipment to provide a suitable response. The plan also adequately covers the risks because it can come up with the possible solutions to the risks.The organization comes up with a committee that immediately approves of the charters of oil-spill control vessels and approved the purchasing of oil barrier booms. These become an effective way of solving the problems involved in oil spillage.
Where does the plan excel? The plan excels by coming up with the Saudi Arabian Meteorology and Environmental Protection Administration (MEPA). The group is formed to act as the national response coordinator for oil spill activities. It undertakes surveillance and gets the information needed for tracking oil spills. All activities involved in response to pollution accident at the national level are directed and controlled by MEPA. MEPA, therefore, formulates and monitors the implementation of the policies, procedures and regulations for controlling and preventing pollution. This step taken by Saudi Aramco organization makes the plan successful and excellent. The Saudi Aramco contingency plan detailed a coordinated, company –wide response to major oil spoil. The plan excelled because it established priorities in an order from the most important to the least important. The plan first addressed the issue of human life, environment and property and lastly minimizing the economic loss. The planning committee identified very fast the immediate charters of oil-spill control vessels and approved the purchasing of oil barrier booms.
Where is the plan inadequate? Also, the plan does not provide adequate measures to protect the workers from facing health problems that occur from oil spillage. It is true that the workers are the most affected by oil spillage when it comes to the risk of oil spillage(Marcel, 2007). This is because they come into direct contact with the oil spills and most especially the clean up workers. The plan has not allocated any possible protection for these workers Also, the plan is inadequate because it does not anticipate the unique problems in surving with a massive oil spill in the center of a shooting war. The plan did not come up with a way of finding out the source of the spill and the size of the spill. The most important and the crucial step of solving the problem of oil spillage was to identify the source of the spillage.The plan did not know at first the resources they would use to solve the problem.
Identify risks that the plan does not address. The contingency plan of Saudi Aramco does not solve the risk of of animals and plants. Oil spill affects the animals and plants that live in the marine. This is because oil contains some chemical and poisonous substances. Oil spills cover the sea such that light and air does not pass through the water anymore. Hence, it results in the death of animals that live in marine, and also, plants that survive in the waters are affected. The contingency has ignored to address this risk that causes a lot of harm to the animals and plant in the marine. The plan does not address the risk of losing the tourists as a result of oil spillage. The tourism industry is highly affected by oil spillage as most tourism tend to avoid areas where there are dead birds, sticky oil around the marine. Many activities tend to stop such as sailing, swimming, and parachute gliding
Suggest a way to minimize that risk. Designing facilities that are increasingly reliable, safe and efficient could be ways of minimizing the risks of oil spillage. With reliable and safe equipment it can always prevent chances of leakages and spillage could be minimal. The organization should always ensure that the tankers that transport the oil are of high quality and that they are not likely cause leakages. The organization should always conduct maintenance and inspection campaigns regularly. This will ensure that the oil is always in order and in a good place so as to avoid the chances of oil spillages. The organization should also use leak detection devices. This keeps the company aware of the condition of the oil storage places. The organization is also made aware any leakage that occurs immediately and hence they are capable of preventing it early before it cause more harm to the environment.The organization should always select means of transportation and routes that reduce the risk of accidents that can cause oil spillage.
Which plan do you prefer and why? Management plan could be best preferred for Saudi Aramco. Most organizations tend to fail due to poor management. Hence, it would be best to plan on management to avoid the risk involved in poor management. With a good managing team, Saud Aramco can do absolutely good hence planning for management would be the best plan. An organization that is well managed is always put in order, and everything goes hand in hand with the primary goal of the company. Therefore planning for management increase more benefits to the organization and hence success to the entire organization because the goals and objectives of the company are achieved. Alternatively planning for supply would be effective.This will identify the risks involved in supplying and hence come up with the possible solutions to the risks involved. There are many risks involved in supplying of resources by various companies which act as setbacks for the organizations. Planning on supply of oil by Saudi Aramco will maintain the position of being among the top producers or even improve.

References

Abdulaziz H. Abuzinada, H.-J. B. ( 2008). Protecting the Gulf’s Marine Ecosystems from Pollution. Springer Science & Business Media.

Hatim Al-Bisher, S. S. (2011). Saudi Maritime Policy: Integrated Governance. Routledge.

Marcel, V. (2007). Oil Titans: National Oil Companies in the Middle East. Brookings Institution Press.