Chevron Corp., based in San Francisco, manages a vertically integrated value chain worldwide from the oil well to the gas station. Mismanagement of oil at any stage of production can damage the natural environment, human health, profitability, or all three. At the same time, Chevron should be careful with the amount of money spent on measures to manage these risks, and environmental programs within the company may conflict with a long tradition of decentralized management. To manage risk more effectively, leaders of Chevron contemplate the use of quantitative decision tools that allow administrators operating in the calculation of gross income cost-benefits of the various options for risk management related projects. The case focuses on the advantages and disadvantages of using these tools in the context of the overall system Chevron for environmental risk management.
by
Forest Reinhardt,
Monica Mandelli,
Jennifer Burns,
Source: Harvard Business School
28 pages.
Date Posted: March 10, 1999. Prod #: 799062-PDF-ENG
Environmental Risk Management Solution Chevron Corp Case
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