The Federal Report on the BP Macondo well disaster that killed 11 workers and caused a catastrophic oil leak into the Gulf of Mexico was released last week, and the conclusions are ugly.

According to an article on the report from Business

“The blowout at the Macondo well on April 20, 2010, was the result of a series of decisions that increased risk and a number of actions that failed to fully consider or mitigate those risks,” the report said.

The investigative panel “found no evidence that BP performed a formal risk assessment of critical operational decisions made in the days leading up to the blowout. BP’s failure to fully assess the risks associated with a number of operational decisions leading up to the blowout was a contributing cause of the Macondo blowout.”

The report also said cost- or time-saving decisions made by BP “without considering contingencies and mitigation” contributed to the disaster, as was the energy company’s “failure to ensure all risks associated with operations on the Deepwater Horizon were as low as reasonably practicable.”

Once again, failure to properly assess and mitigate risk has lead to a catastrophic disaster for the people killed and injured, for the environment, and for the business responsible.

From the nuclear reactor meltdowns at Fukushima, Japan to the Macondo well in the Gulf, we are seeing the dreadful results of failure to assess and mitigate known risks.

What is the next avoidable disaster that is going to hit? And will we have to read another report about the failure to manage catastrophic-risk as one of the causes?

One excellent way to control risk in your project portfolio  while maximizing value is by using Optsee® in your project portfolio management program. Click on the link to watch the short video Winning the Lottery of Project Portfolio Management by Using Real Optimization (9:30) to learn more.