RISK-BASED INTERNAL CONTROL SYSTEM AT OIL AND GAS ENTERPRISES

Abstract

The adaptation of the internal control system of oil and gas enterprises to wartime realities is considered, and a comprehensive analysis of the risk-based internal control system at oil and gas enterprises under martial law is carried out. Special attention is paid to the assessment of current risks caused by the physical threat to infrastructure, the rise in cyberattacks, disruptions in logistics, staffing instability, and social tensions. The feasibility of transforming the classical internal control model by adapting it to conditions of extreme uncertainty is substantiated. In this context, it is proposed to revise traditional control functions, expanding their scope to strategically important areas.

Key vectors for internal control adaptation have been identified, including updating internal policies and procedures taking into account crisis scenarios, developing a crisis management system, strengthening information security, implementing personnel training programs on risk management, and integrating social and environmental components into the control system. Particular attention is paid to controlling the proper use of humanitarian aid, monitoring the physical security of facilities, organizing insurance protection, and employee support.

An operational model of interaction between departments within internal control based on the principles of cross-functional coordination, management flexibility, and continuous communication is proposed. The model developed not only ensures the identification and minimization of risks, but also supports the continuity of business processes and the resilience of an oil and gas enterprise under high variability and uncertainty. The results of the study form a methodological basis for strengthening enterprise resilience and improving the internal control system in conditions of external threats and can be used when developing internal regulations, implementing anti-crisis measures, and conducting an internal audit of the control procedures’ effectiveness in the energy sector.