Risk and Sustainability: Identifying and Prioritizing Risks Prior to Insuring a Transnational Oil Pipeline

Abstract

The identification of risk is a fundamental skill required to manage a successful business. This data challenge is concerned with the identification, analysis, and reporting of risks for a project located in East Africa. It requires an interdisciplinary approach to the identification and management of risk. This data challenge is suitable for final-year undergraduate students and graduate students in International Business, Risk Management, Management, Environmental Management, Strategy, Applied Sustainability, and Project Management.

The pipeline known as the Uganda and Tanzania Crude Oil Pipeline (UTCOP) commences in Uganda, and the pipeline travels across Tanzania to the port of Kambania located on the west of the India ocean. UTCOP is owned by a mixture of public and private corporations. Ownership has changed during the period 2015–2021. UTCOP will make a significant positive impact to the economies of Uganda and Tanzania increasing foreign direct investment for both countries. The pipeline has created tensions between activists and politicians, and highlights the possibility of developing countries monetising fossil fuels during a time when many support the goal of reducing reliance on fossil fuels. The pipeline travels close to a number of environmentally sensitive sites. The land required for the pipeline has disrupted the agricultural economy and displaced locals.

The data challenge highlights the pressure to pursue economic development and the tension that exists with achieving the UN Sustainable Development Goals (SDGs), meeting environment, social, and governance (ESG) requirements, and pursuing responsible management. This challenge is seen through the lens of the insurance underwriter, Tobias, who needs to identify risks using the PEST and SWOT frameworks, and a novel application of PESTLE from a risk identification perspective.

Upon completion of this challenge, students will develop metacognitive knowledge on risk identification, apply key frameworks, evaluate the application of sustainable development goals (SDGs) and ESG requirements, and create a report providing tangible evidence to support the potential implementation of responsible risk management. Students will need a basic understanding of international business, SDGs, and risk exposure to complete the challenge.

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