713-409-6127
Freddy.Goerges@oggn.com
713-409-6127
Freddy.Goerges@oggn.com
Managing risk is crucial for reducing supply chain risk. There are several strategies to minimize risks, including risk transfer and risk mitigation. Risk transfer is a strategy whereby companies shift some risks to suppliers, while others remain within the organization. Transferring risks is essential because avoiding risk puts the entire organization at risk. Various tools such as insurance and agreements between vendors can help mitigate organizational risks. However, a vendor cannot fully mitigate risks on their own.
Supply Chain security is more and more heavily focused on digital security and prevention of cyber attacks. For instance, companies providing critical components to the DoD must ensure their supply chain is secure. Cyberattacks can compromise the integrity of information and key industrial processes and degrade commercial functioning. Recent incidents have highlighted the importance of supply chain cybersecurity. A recent ransomware attack on Colonial Pipelines highlighted the importance of protecting sensitive information and developing plans to protect the supply chain from attacks. Those responsible for providing critical components to the DoD should also invest in building resilience against cyberattacks and gaining access to reserve components to meet their needs.
The complexity of supply chains creates a unique set of risks. Supply chain security can fail to protect the supply chain, which can lead to shortages, inflation, and factory closures. Ultimately, supply chain failure can even threaten national security, which is a nation’s ability to protect its citizens. The key to supply chain resilience is to keep up with the challenges of the ever-changing global environment. However, this is not as easy as it sounds. There is a need for more research on the issues of supply chain security.
Oil & Gas Global Network “OGGN”
Texas Quality Assurance and the #QualityMatters podcast
Houston Young Professionals Network
KEEP READINGDeveloping an effective cyber security posture requires solid management techniques, often a robust budget, staffing, and ongoing monitoring. Cybersecurity tools and training raise employee awareness of security threats and the need for defense in depth strategies. Careful vendor vetting is another important element of a successful cybersecurity program. The most effective cybersecurity strategies invest in people, processes, and technology to prevent cyber threats. A lack of these elements can lead to an increase in costs, complexity, and staff frustration.
Malicious actors spend days hacking software and looking for vulnerabilities in systems. Cyber Security and Information Technology teams should look at the entire architecture of the computing system and identify the risks and sensitivity of data. The activities are typically concluded with a report on potential vulnerabilities. While the forensics teams are critical in protecting data, it is not enough to install a product that will protect against malware.
Encryption blackmail attacks, also known as ransomware, are a serious threat. Hackers penetrate internal networks via a worm virus and encrypt data using a password only they know. Once they have encrypted the data, the hackers contact the organization, demanding a bribe to decrypt it. Cybercriminals are now the most common form of cyberattacks, and the amount of money spent on cybersecurity is increasing at a rapid pace.
Oil & Gas Global Network “OGGN”
Texas Quality Assurance and the #QualityMatters podcast
Houston Young Professionals Network
KEEP READINGWhat is really going on with workplace violence and God forbid active shooter scenarios? There are no shortage of ideas and theories, but there are some simple facts that are not disputed. Workplace violence has its origins in the hearts and mind of people, people like you I. Workplace violence is more common when the culture promotes hostility, or strongly suppresses it under the pressure that has built for years, hence the term “going postal”. Winning the hearts and minds of our people, being aware of stress and pressure under the surface, and ready to respond when something or someone slips through the cracks is the key to preventing workplace violence and active shooter scenarios.
The first steps include employee screen and background checks, but we all know that these are not full proof, there must be a first incident for anyone. The same skills and tools we use for workforce stability will be critical here. Ensure as managers, owners, and operators you truly get to know your team members. Ensure they are comfortable sharing troubles and concerns that are hampering their ability to person, and ensure you are investing back into their training and development.
Development of a workplace violence response plan is going to be vital. The plan should highlight what you can do to stabilize the situation, communicate with employees, and transition into recovery mode. You may consider investing in armed security and/or select team members to deter someone who otherwise would seek to do harm. No doubt solutions such as these prevent their own risk, and they must be reviewed and proper continency plans and efforts developed to maximize the benefit. Programs are also available to provide support and assistance for employees struggling with mental health and struggles at home.
At the end of the day the key is going to be to winning the hearts and minds of your employees by building trust and security and being prepared for the worst.
Oil & Gas Global Network “OGGN”
Texas Quality Assurance and the #QualityMatters podcast
Houston Young Professionals Network
KEEP READINGFrom hurricanes, to tornados, wildfires, freezes and floods, mother nature is going to battle against you and your business. The proper precautions and contingency plans can save lives and property. A good plan also makes it easier to get things up and running in the aftermath.
Drawing up a disaster contingency plan can seem overwhelming. Looking at the recent nightmare of Texas wildfires or the damage caused by Hurricane Harvey and the freeze of 2021, it may feel pointless to think about contingency planning. You may be thinking, “What can I do to stop mother nature herself?” but steps can and should be taken to prepare.
First, pinpoint what sort of disasters you are most likely to deal with, you know your business better than anyone else. Identify the risks and list them out. For instance, in a flood zone, elevating your property above normal flood levels can protect your premises from disaster.
Pre-planned methods of communication are vital for holding things together. Have contact information for everyone: employees, managers, customers, and family, even their members. Make plans for what to do if the Internet or phone service is out. Keep in mind how vulnerable paper and critical electronics are, and make sure to have plans in place for when you return to the office.
Preserving your people and assets makes it possible to reopen your doors quickly. Make plans for resuming business activity too. Can you arrange to set up at another site, work remote or from a cloud server? Is there a way to get inventory shipped in to an alternate location? It’s much easier to work this out in advance than when the catastrophe happens.
Oil & Gas Global Network “OGGN”
Texas Quality Assurance and the #QualityMatters podcast
Houston Young Professionals Network
KEEP READINGManaging a turnaround process is not always easy, but its possible. There are many different skills involved in this process and the success of the turnaround process depends on the people and management working on it. If you are the person who oversees the execution of the turnaround process, then there are some things you should know, especially when the project does not go as planned.
Human resources and workplace instability can be the Achilles heel of the project. Cost is considered the biggest right, but the costing process of a turnaround can be modeled using a bell curve and other commonly available tools and techniques. Initially, specialty skills are brought up slowly as units or vessels are opened and shut down. Towards the end of the turnaround process, the specialty skills start to diminish. Managers should review staffing levels frequently against schedule requirements and demobilize excess manpower to control costs. Manpower shortage, and shortage of properly skilled and trained manpower can run the project off course quickly. As a rule, turnaround managers should have a contingency budget that is 10% higher than the budgeted amount.
A critical component of turnaround management is the ability to communicate well and manage the scope. In fact, there are several common challenges that arise when managing a turnaround. The most difficult problem to overcome is the lack of dialogue between management and field supervisors. Senior management might allow major jobs to be added late. This presents an unacceptable risk to the project. Identifying problems and resolving them as early as possible is vital to the success of a turnaround.
Oil & Gas Global Network “OGGN”
Texas Quality Assurance and the #QualityMatters podcast
Houston Young Professionals Network
KEEP READING
