Editing BP p.l.c. (section)

== '''<u>Risks</u>''' ==

=== ''Each risk is scored according to the risk matrix below'' ===
{| class="wikitable"
|+Risk Matrix
! colspan="2" rowspan="2" |
! colspan="3" |Impact
|-
!Low
!Medium
!High
|-
! rowspan="3" |Likelihood
!Low
|A1
|B1
|C1
|-
!Medium
|A2
|B2
|C2
|-
!High
|A3
|B3
|C3
|}

=== Growth of the Business ===

* '''B3''' Declining oil prices: The oil and gas industry is cyclical, and oil prices have been declining in recent years. This could impact BP's ability to grow its business and generate profits.
* '''C1''' Shifting demand: The demand for oil is declining in some parts of the world, as countries transition to cleaner energy sources. This could also impact BP's growth prospects.
** European Union has committed to reducing its reliance on fossil fuels by 55% by 2030. This could impact BP's demand for oil in the future.
* '''B2''' New entrants: New entrants to the oil and gas industry could pose a challenge to BP's market share.
* '''B3''' Technology: BP is facing increasing competition from new technologies, such as electric vehicles and renewable energy. If these technologies become more widely adopted, they could displace BP's traditional oil and gas businesses.

=== Company's Operations ===

* '''C2''' Safety incidents: BP has been involved in several safety incidents in recent years, including the Deepwater Horizon oil spill in 2010. These incidents could damage BP's reputation and make it more difficult to attract new customers and investors.
* '''C1''' Environmental: BP's operations could also cause environmental damage, which could lead to lawsuits and regulatory fines.
* '''C2''' Cybersecurity attacks: BP's operations are increasingly reliant on technology, which makes them vulnerable to cyberattacks. These attacks could disrupt BP's business and damage its reputation.
** 2017, BP was the victim of a cyberattack that resulted in the theft of customer data.
* '''C3''' Geopolitical risks: BP operates in a number of countries around the world, and political instability in any of these countries could disrupt its operations. 
** The war in Ukraine has had a significant impact on BP's business, as it has been forced to exit operations in Russia.
** Operations in Iraq were disrupted by the war in 2003.

=== Governmental Laws and Regulations ===

* '''C2''' Changes in government policies: Changes in government policies, such as stricter environmental regulations, could make it more difficult for BP to operate and could impact its profitability. For example, the European Union has recently proposed a ban on the sale of new gasoline and diesel cars by 2035. This could impact BP's demand for oil in the future.

=== Ownership of the Company's Common Stock ===

* '''B1''' Shareholder activism: BP's shareholders could become more active and demand changes to the company's strategy or operations. Yet despite the fall in earnings, which missed analysts’ expectations by almost $1bn, BP surprised investors by increasing the dividend by 10 per cent to $0.70 per share. This will, in some extent, boost shareholder's confidence
** In 2020, a group of BP shareholders filed a lawsuit demanding that the company reduce its carbon emissions.
* '''A1''' Takeover threats: BP could be the target of a takeover by another company.