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Risk Management & Supply-Chain Continuity —Case Study: SPDC

Nwiepe, Naata Michael Ph.D Lecturer, Ihunwo Oscar Ohaka, Okwusi Grace Micah

Abstract

Supply chain continuity is a major priority for organisations operating in high-risk and volatile environments, particularly within the oil and gas sector. The Shell Petroleum Development Company , operating in Nigeria’s Niger Delta, contends with persistent operational challenges such as pipeline vandalism, crude oil theft, militant disruptions, environmental hazards, and regulatory uncertainties. These conditions create frequent interruptions across the supply chain, highlighting the need for a robust risk management framework capable of sustaining uninterrupted operations. This study investigates the relationship between Risk Identification and Assessment , Mitigation, Response and Recovery , and supply chain continuity within SPDC. A quantitative research methodology was employed using a survey research design. The target population comprised SPDC as an organisation, with the unit of analysis centred on core operational departments responsible for risk management and supply chain operations. Staff representatives from these key departments were selected to provide organisational-level insights. An estimated organisational population of 150 positions across the relevant units was identified, from which a stratified sample representing 50% of this structure (75 respondents) was drawn. Data were gathered using a structured questionnaire consisting of four sections: organisational demographic information, RIA practices, MRR practices, and supply chain continuity outcomes. A 5-point Likert scale was used to measure organisational perceptions and practices. Content validity was achieved through expert review by academics and industry practitioners, while reliability analysis produced Cronbach’s alpha coefficients between 0.79 and 0.87, indicating strong internal consistency. Descriptive statistics, correlation analysis, and multiple regression techniques were used to examine the relationships and predictive effects among the variables. Findings revealed that SPDC demonstrates high levels of RIA and MRR practices, with mean scores of 3.94 and 4.02 respectively. Correlation results showed strong positive relationships between RIA and supply chain continuity (r = .713, p < .05), and between MRR and continuity (r = .745, p < .01). Regression analysis confirmed that both RIA (β = .381, p < .001) and MRR (β = .476, p < .001) significantly predict supply chain continuity, jointly accounting for 65.9% of the variance (R2 = .659). The study concludes that integrating proactive risk identification with effective mitigation, response, and recovery mechanisms enhances organisational resilience and sustains supply chain continuity in the challenging environment of the Niger Delta. The results underscore the importance of continuous improvement in risk management processes tailored to dynamic socio-political and operational conditions.

Keywords

Risk ManagementRisk Identification and AssessmentMitigationResponse and RecoverySupply Chain ContinuitySPDCResilience

References

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