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.. GH Vodafone 17:05 P Kay RESIT_Risk Management map exercise () Question 2 The Tullow Oil Corporation operates three oil refineries in Ghana. Six months

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.. GH Vodafone 17:05 P Kay RESIT_Risk Management map exercise () Question 2 The Tullow Oil Corporation operates three oil refineries in Ghana. Six months ago, there was an explosion at one of the refineries, resulting in serious injury to over 20 employees. An investigation was carried out by a government agency, the Safety and Hazard Investigation Board. In the introduction to its report, the Board commented: "Tullow Oil Corporation has not provided effective process safety leadership and has not adequately established process safety as a core value across all its three refineries. The Board found instances of a lack of operating discipline, toleration for serious deviations from safe operating practices and apparent complacency towards serious process safety risks at each refinery.' The previous year, an investigation of safety procedures had been conducted at two of the refineries by an independent company of safety experts. The report of the experts had expressed major concerns about weaknesses in safety practices. The report had been distributed to the refinery managers, but no action had been taken. The Board's report went on to comment that none of the refineries had a printed safety manual and that the senior refinery managers themselves were responsible for breaches of safety procedures. It mentioned a case of a whistle blower three weeks before the explosion, who had reported a serious safety risk. His report to his immediate superior had been ignored, and he had therefore made an urgent report direct to the refinery manager, who told him to speak to his immediate superior. Frustrated at his inability to get anyone to listen to his concerns, the employee had reported his concerns to a television news company. After the explosion, the television company used the concerns of the employee (and how they were ignored) as part of its coverage of the story Required (a) Explain the objectives of an internal control system. (5marks) (b) Describe briefly the main elements and the requirements for a 'sound system of internal control. (10 marks) (c) Explain how conditions at the refineries of the Tullow Oil Corporation indicate that it does not have a sound system of internal control in operation. (10 marks) [Total marks-25) I GH Vodafone 17:06

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