Legal Hazard Category lawsuits as top risk category analysis

This is a paper that is focusing on the Legal Hazard Category lawsuits as top risk category analysis. The paper also provides additional information to use in the writing of the assignment paper. Below is the assessment description to follow:

Legal Hazard Category lawsuits as top risk category analysis
In the Legal Hazard Category, you failed to correctly identified Lawsuits as the top risk in this category. Where your analysis should have included a multitude of relevant cites pertaining to the numerous lawsuits the current oil companies doing business in Nigeria are facing, or had to settle, regarding oil spills. Even though the vast majority were cause by oil bunkering. These lawsuits are not only costing the companies millions of dollars, but adversely effecting these companies’ brands (Reputation), thus making this a high-risk category. The next important risk in this category deals with the Legislation/Laws that foreign corruptions have to negotiate. You then needed to identify and adequately analyze the relevant Nigerian statutes that apply to the oil industry within Nigeria, i.e., The Petroleum Act.

In the Financial Hazard Category, you correctly identified the most important risk in this category, Corruption.
You can hardly do any research on Nigeria without coming across the prevalent corruption that rots at the country. Nigeria is one of the most corrupt countries in the world and there are numerous relevant cites on point regarding corruption and the Nigeria oil industry. This risk should also have been used when addressing the Reputation Hazard Category. The next important risk you needed to address in this category, is the risk to Market Conditions. Although you mentioned Market Conditions, your analysis was off. Think about what the
fluctuation in oil prices could do to Aggie Energy, since down oil prices can have a devastating impact on a small oil company as opposed to a major company like Shell Oil that can weather the poor market swings.

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