Article

Digital Risk: Creating confidence at the edge of possibility

Oil & Gas Corporations

How is digitisation impacting Oil & Gas Corporations?

The race for competitive edge has never been fiercer, innovation and resilience never more essential to success. Pursuing advantage means boldly acknowledging risk and going confidently forward - leaning into new possibilities undaunted by scale or complexity. Leading organisations know that people, processes and technology combine to continually reshape the frontiers of possibility – from the adoption of cloud, the shift to remote working, automation and artificial intelligence.

We can create the confidence to marshal these possibilities to action and help the leaders driving digital transformation create sustainable value. To find out what we can do to help you visit our Digital Risk hub and explore our framework, or contact us as below. 

Key challenges

Thriving in the new normal requires adapting to new technologies to stay competitively relevant while mitigating the risks to the business.

Safe and ethical implementation of artificial intelligence and machine learning
Create the confidence and understanding to successfully embrace radical and dynamic new decision support systems in order to explore new frontiers in value creation
  Risk conduct, regulation and culture in the digital world
Lean into the possibilities of digital while confidently controlling the risks created by having a closer relationships with the consumer
Transforming digitally with confidence
Step forward into possibility, while being prepared for the unknown
  Controlling disruptive technologies, cloud, data and agile ecosystems
Create positive change through controlled revolution; protect BAU activity whilst embracing disruption
Digitisation of risk, compliance and control management
Transform effectively and safely by embracing digital strategies for managing digital risks
 

What are the risks?

Organisations should build the digital confidence required to thrive in the “digital world”

Board
Are we getting the right level of information about the digital change happening in the business?
  CIO
How can I confidently embrace new technologies and mitigate the risks of digital to allow for a more confident and effective business?
CMO
Am I able to harness the technologies and innovations that get the business closer to the customer and set us apart from the competition?
  CTO
How can I build the trust in digital that’s necessary to overcome transformation fears and realise transformation success?
CISO
How can I help the business embrace digital, build safe and secure solutions by embedding risk management and security throughout the innovation and development cycle?
     

Oil & Gas Corporations: 2021 Digital Risk trends

Shift to Renewables

Trends

Energy and resources are shifting towards a renewable focus, driven by new technology and a shift in consumer sentiment

Risks

  • Failure to adopt and adapt quickly enough
  • Fundamental shift in sector operations risking efficiency and buy-in
  • Failure to successfully and securely integrate third parties and customers into supply chain
  • Generalising the customer demand and experience 

Questions

  • Renewables: Do you have a strategy, budget and reach planned? How is this determined? How is success measured?​
  • Supply chain: How in control are you? What is your supplier risk profile?​
  • Customers: Are your customer journeys inclusive? Do you know your customers, their needs, and how to interact?

Scaling Robotic Process Automation (RPA)

Trends

Automation is being scaled to run tasks independently or semi-autonomously to optimise performance and productivity

Risks

  • High costs of implementation (human and monetary)
  • Cyber, human and service risks posed via access to industrial control systems
  • Productivity loss through automation malfunction and/or lost knowledge, feeding through to product recipients

Questions

  • Strategy: What is your budget, reach, and plan for new technology and RPA? Which processes could be optimised through RPA?
  • Governance: What is the governance process for RPA? How do you track RPA performance? Would your current governance controls pick up RPA as a thing to be managed?
  • Security: How do you protect new technology and its role in relation to energy and/or resource production? How do you manage, track & respond to cyber, human and service risk?
  • Data: How will you configure RPA? What’s the backup plan? How will you manage and ensure compliance?

Migrating to the cloud

Trends

Companies are adopting a cloud-first strategy and migrating legacy systems to the cloud, improving business operations, security and consistency

Risks

  • Costs of implementation and upkeep 
  • Cyber risk of systems being managed online and the damage that could be posed by any breach 
  • Data risk and loss through migration and storage 
  • Lack of cloud strategy and migration plan 
  • Limited data and infrastructure visibility, control and security  

Questions

  • Security: How do you manage access and protect against risk currently? How will you adjust this infrastructure in the cloud?​
  • Data: What is your current architecture? How scalable / flexible is your landscape? How do you secure & protect against data loss?​
  • Governance: How will you encourage organisation buy-in? Can you control the speed and extent of your Cloud transformation? Where does responsibility end?​
  • Control: How do you secure data and ensure regulatory compliance? Do you have oversight of your global landscape (costs/digital)? ​

Business continuity and resilience

Trends

As organisations adopt increasingly digitised ways of working, business continuity, resilience and disaster recovery require new and prioritised thinking to enhance and protect operations

Risks

  • Limited cyber risk awareness and defences
  • Compromising of data privacy and confidentiality
  • Limited licenses and business capacity to support and drive digital infrastructure
  • Failure to realise value from and benefits of investments

Questions

  • Security: How do you track and ensure security? Do you implement constant monitoring and alerts for security and compliance requirements?
  • Privacy: Do you implement it from the beginning, into all systems and operations?
  • Data: How consistent, connected and transparent is your data? Do you run analytics to optimise performance?
  • Tools & Technology: How to fast-track implementation & adoption, and keep devices and systems patched and up to date? Is your technology investment achieving measurable outcomes for your stakeholders?

Culture control

Trends

Success in digital transformation is determined by business buy-in to the construction of a digital-culture 

Risks

  • Failure to adopt a forward-looking and evolutionary mind-set towards technology and process optimisation, resulting in loss of market competitiveness
  • Failure to embrace a culture of connectivity and collaboration digitally
  • Missed returns from digital transformation due to limited adoption

Questions

  • Buy-in: How to drive a fundamental mind-set change through digital transformation? How do you maximise technology adoption and minimise cultural resistance? How do you deliver your business ethics and practices to customers, the organisation and business community? ​​
  • Support: How do you support employees and customers in new environment?​​
  • Competitiveness: How do you balance change, consistency and security? ​​

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