Risk Management: A Qualitative Study of the Moroccan Downstream Petroleum Supply Chain
Abstract
Supply chain risk management is paramount to anticipating, controlling, and minimizing SC risk impacts on every company, especially petroleum companies. The petroleum supply chain has attracted interest for many reasons. This supply chain is long, complex, and highly developed, which makes it vulnerable to several uncertainties. However, few studies have examined supply chain risks in non-oil-producing countries. Morocco is one of those nations because it is a net importer of hydrocarbons, but no research has tackled the risks associated with its oil supply chain. For this purpose, we conducted a qualitative study through semi-structured interviews with executives of ten petroleum companies based in Morocco (national and international). The goals were to explore how these companies manage their supply risks and compare this real-life case with the literature and ISO 31000 risk management standard. It also attempts to assess each petroleum product’s supply chain’s criticality. The findings demonstrate that Moroccan petroleum companies consider risk management when handling supply chain risks. However, there is still a lack of application of quantitative risk methodologies and IT tools for supply risk management. Furthermore, based on this exploratory study, it appears that some products, such as fuel oil, diesel, and LPG, have a far more crucial supply chain than other petroleum products.
Keywords: risk management, supply chain uncertainties, oil industry, Morocco.
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