Mohamed Daoud, director and industry practice lead for Financial Crime and Third-Party Risk Compliance, Middle East and South Asia at Moody's. (Image source: Moody's)
In an article for Oil Review Middle East, Mohamed Daoud, director and Industry Practice lead for Financial Crime and Third-Party Risk Compliance, Middle East and South Asia at Moody's argues that Interconnected threats make a strong case for unified risk management to help protect organisations and their extended networks
Threats to the energy and utilities sector come from many sources, including economic volatility, geopolitics, regulatory changes, and the proliferation of digital systems, and are increasingly interconnected. Operational threats are rarely isolated. Instead, they are deeply interwoven, with disruptions in one area rapidly cascading across organisations and their extended networks.
The complexity of third-party relationships intensifies operational risk because suppliers, contractors, and intermediaries often have access to internal systems and sensitive data, introducing additional operational, financial, and cybersecurity threats. Fragmented risk management systems often compound these difficulties.
A unified approach to risk management may identify, anticipate and mitigate these dangers more quickly.
Without a unified view, energy firms may struggle to assess interdependencies and anticipate disruptions that could jeopardise business continuity. The interconnectedness of modern operations means a single disruption - from a vendor, data center, or logistics partner - can trigger immediate and widespread consequences.
Unified risk management consolidates risk data from disparate sources into a single, integrated platform. This approach enables continuous monitoring, automated alerts, and real-time decision-making across key risk dimensions such as financial health, sanctions exposure, cybersecurity threats, and vulnerability to extreme weather events. By embedding predictive analytics, organisations can detect early warning signals - such as financial distress in a supplier, geopolitical instability, or regulatory changes - and respond proactively.
This approach helps energy and utilities companies to protect themselves in a landscape defined by speed, interdependence, and unpredictability. By consolidating risk data, leveraging advanced technology, and fostering strong governance, organisations can transform risk oversight from a fragmented, reactive process into a pivotal, integrated discipline that safeguards business continuity and supports long-term success.
You can read the article in the latest edition of Oil Review Middle East here
