Methods of Risk Management for Petrochemical Industry of Thailand

Abstract

The article aimed to study the current situations in risk management, the level of management in industrial business and the level of performance of risk management. The study analyzed the factors of business management affecting the risk management and provided the methods for risk management of petrochemical industry in Thailand. Both qualitative and quantitative research methods were chosen for this study. For quantitative research method, the data collection was from 260 questionnaires. While in-depth interviews to 17 executive staffs and include staff in government sectors were selected for qualitative research method. The results showed that 1) in current situations, risk management tools that complied with American and European standard for risk management were still used in petrochemical industry 2) the level of business management in petrochemical industry was at high level  and the level of risk management implementation in petrochemical industry was the highest level 3) the factors of general information of the companies were not significantly different in statistics at .05 level; moreover, the analysis in the factors of business management affecting the risk management of petrochemical business could be also applied to explain the change of the performance of the risk management of petrochemical industry at 32.4 percent while the factors of business planning and controlling had a significantly effect on the risk management of petrochemical industry in statistics at .01 level, and the factors of organization management in industrial business in petrochemical industry and the coordination affected the outcome management in statistically significant results at .05 level and 4) the methods for risk management of petrochemical industry in Thailand included (1) measure for risk reduction (2) measure for risk prevention and (3) measure for solution.