Analyse the case study presented and explain the risk and the strategies to use.

BP Deepwater Horizon

In 2010, BPs Deepwater Horizon oil-drilling rig in the Gulf of Mexico exploded, killing 11 employees and causing an oil leak that lasted for three months. This is the biggest oil spill in U.S. history.

The oil spill devastated the environment and tourism. Damage to the environment has been long-lasting one study valued the impact at $17.2 billion. The spill also caused billions of dollars in negative economic impact on tourism in the region. Meanwhile, the financial toll for the company included the following costs:

Through early 2020, BP paid about $70 billion in clean-up costs, legal settlements, and fines.

In the two months after the spill, the companys shareholders lost $105 billion as its stock price plummeted.

For a time, the companys survival was in question. Its bonds crashed in value, and the company had to stop paying dividends for three quarters.

In the United States, the BP brand faced a backlash from consumers, and BP gas stations saw sales drop 10 to 40 percent in the immediate aftermath of the spill.

BP had to reduce its business spending for years, which analysis said put it behind competitors such as Shell, whose brand value rose 24 percent that year, according to Interbrand. BP dropped from the second-largest global oil company in 2010 to fourth, where it has remained.