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With this project, PVEP will become not only the first state – owned corporation but also the first company amongst corporations which have overseas investment to implement ERM framework in Vietnam.
“The implementation of ERM framework is prioritised as one of the strategic goals of PVEP from 2013-2015, to ensure PVEP reaching its visionary objective of becoming one of the strong companies in oil and gas exploration and production in the region in 2015," said Dr. Do Van Khanh, PVEP’s general director.
To achieve such objective, PVEP has trusted and chosen Deloitte – the world leading professional firm in risk management – which has full capacity to support with the ERM framework development in compliance with the Corporation’s nature, oil and gas industry trends, and international economics situation; to establish a solid foundation to ensure the effectiveness of risk management activities and bring values to the corporation, Khanh added.
Following cooperation scheme, Deloitte shall assist PVEP to develop risk management strategies and structures, design risk management policies and process, implement risk management system as well as organize training and transferring technology during the project execution period.
ERM has become crucial, especially for oil and gas enterprises all over the world. In Vietnam, ERM has only recently received attention, especially after the global economic recession which has affected Vietnam’s economy. It, however, has only been implemented mainly in banking sector.
The implementation of ERM must be practical and consistent with the risk management capability of each company so that ERM activities are genuinely effective. Enterprises can apply ERM with practical solutions to transit into a more risk - resilient condition and to be able to promptly response to uncertainties, thereby, to improve the quality of corporate management.
On this occasion, Madame Ha Thu Thanh, chairwoman of the Board cum CEO of Deloitte Vietnam also stated that: “Deloitte highly values the cooperation with PVEP and will gather the best resources to support PVEP to successfully implement ERM".
The leading consulting experts of Deloitte Global and Vietnam will support PVEP with the latest trends and changes about risk management of world leading oil and gas corporations as well as share with PVEP the experiences in developing ERM framework from big oil and gas corporations in the region, she said.
David Traylor, principal, Business Risk Services, Oil and Gas Industry, Deloitte Office in Houston (USA) shared that: “The implementation of ERM differs in each industry. In banking industry, the primary concern is the capability of ERM to reduce loss of investment. As for oil and gas industry, not only the loss of investment, but the most primary concern is the capability of ERM to reduce the loss of life and significant damage of the environment so that oil and gas corporations can operate safely, at the most optimal condition”.
PVEP is a large enterprise with assets worth over $5 billion, managing 65 projects in Vietnam and in 14 countries, recruiting over 2,000 employees. Notably, since the corporation operates in a very typical field possessing large scale and high risk, risk management plays an important role to PVEP.
The cooperation between PVEP with Deloitte will bring many great successes in enhancing management capability, and operational efficiency of PVEP. The successful implementation of the contract between the two parties will be a valuable experience for corporations to implement ERM framework in Vietnam.