Researching electronic procurement (e-Procurement)’s risk within the oil and gas industry is quite vital. This is because the industry has presently advanced in the usage of e-Procurement keeping up with the information age. Risk management is “figuring out what can go wrong and how to either avoid it or fix it, or reduce it to as low as reasonably possible”. Following the challenging theme, this empirical study, would proffer answers to these research questions, (a) What are the risks identified in the strategic adoption of e-Procurement within the oil and gas industry? (b) What is the system in place to manage the e-Procurement risks identified? (c) How are all the identified risks in e-Procurement process mitigated in all the organizational management levels within the selected organisations? This article addresses the risk issues related to e-Procurement and in particular presents the result of interviews carried out in selected oil and gas organizations. The interviews obtained portrayed that there is a high amount of human factor risk in the usage of e-Procurement. Furthermore, it was discovered that the potential risk that were ranked very high by oil and gas company managers are centred on human error. It became very apparent that the e-Procurement risk projects were very high and focused on the simple and static website development in the form of online catalogue. This research has also revealed that the oil and gas managers’ effort to promote e-Procurement risk mitigations are not producing desired results at organisational levels and one of the contributing factors to this is relatively low awareness of top managers about the importance an e-Procurement’s risks free system. The results of this study are likely to have a wider implication in the context of multi-national organisations and in general, all industries engaged in e-Procurement.
|Keywords:||e-Procurement, Risk, Oil and Gas Industry|
Doctoral Research Student, Business School, University of East London, London, UK