Implementation of risk management and corporate sustainability in the Canadian oil and gas industry

Purpose With the increasingly complex global environment companies are facing increased regulations. Financial and social risks are often overlooked but the key in establishing the necessary framework for risk management. Under pressure(s) from the media, public and government, the current companies within the oil and gas fields have taken precautionary steps to reduce their carbon footprint and have allowed technological innovations to take a proactive role in maintaining efficiency and sustainability. The purpose of this paper is to propose a framework outlining how organizations are implementing risk assessment and analysis to determine sustainable operations and methods in developing low-risk outcomes. Design/methodology/approach The authors used a case study approach to develop and illustrate the risk management framework. Findings This study provides a theoretical framework for analyzing and reducing risk within the oil and gas sector through explaining various means of innovation and sustainability. Risk integration and mitigation are modeled and quantified within an evolutionary framework. The case study illustrates the risk management techniques currently used in a corporate setting. Originality/value Using innovation and sustainable technologies, organizations can take a proactive role in reducing risk in the oil and gas industry in northern Alberta. Providing shareholders with an innovative framework dealing with strategic implications to reduce risk in compliance with operational costs.