Effects of Risk Management Practices on the Success of Petroleum Products Distribution in Ondo State, Nigeria

Abstract

The distribution of petroleum products are critical to the economic stability of Ondo State, Nigeria. However, challenges in risk management practices can hinder project success, affecting safety, operational efficiency, environmental sustainability, and financial viability. This study aims to assess the effect of risk management practices on the success of petroleum products distribution. A descriptive survey research design was adopted, involving a sample size of 181 participants drawn from a population of 330 senior staffs working in oil and gas firms and regulatory bodies in Ondo State, the selection of the participants was based on purposive sampling and random sampling technique. Data were collected using structured questionnaire and analysed using descriptive statistics and multiple regression analysis. The results revealed that Risk Identification and Risk Assessment have positive significant effects on success of success of petroleum products distribution, Risk Monitoring has negative insignificant effect on success of success of petroleum products distribution whereas Risk Mitigation has negative significant effect on success of success of petroleum products distribution. The study concludes that while risk identification and risk assessment positively affect the success of petroleum products distribution, challenges in risk monitoring and risk mitigation must be addressed to maximize their effectiveness. Hence, this study recommends that organizations should invest in advanced technological tools and real-time data analytics to enhance the quality and timeliness of risk monitoring; and direct efforts towards addressing inefficiencies in the implementation of risk mitigation measures such as periodic reviews of strategies, enhanced resource allocation, and training programs to improve the execution of mitigation plans.