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Black swans and risk management

Risks posed by third parties are usually not contemplated by most risk management plans, but they could well be the weakest links in the organisation's defence.

The Deepwater Horizon oil spill of April 2010 was described as a "black swan" event. In July 2015, BP announced an US$18.7 billion settlement to pay the US and five Gulf Coast states for penalties and various claims under US laws.

ON APRIL 20, 2010, there was an explosion onboard BP's oil rig Deepwater Horizon, located in the Gulf of Mexico. The massive fire that ensued caused the death of 11 crew members. Two days later, the rig sank, flooding the seabed with crude oil for 87 days. It is considered the largest accidental...

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