You are interviewing for a position as the Chief Risk Officer of Sisyphus Petroleum, Inc., a petroleum exploration company that, among other things, owns 5 oil rigs in the West of Shetland oil fields in the North Sea.  In preparation for your interview, the CEO has asked you to review, Risk Analytics.  

Question

The CEO wants you to choose one of the three major forms of risk control analytics discussed in this book chapter—scenario analysis, economic capital, and risk indicators (early warning systems)—and write a two-paragraph analysis of how the form of risk control analytics that you chose would apply to Sisyphus Petroleum's North Sea operations.