BP (BP)

Liquidity, financial capacity and financial exposure

The group has established a financial framework to ensure that it is able to maintain an appropriate level of liquidity and financial capacity and to constrain the level of assessed capital at risk for the purposes of positions taken in financial instruments. Failure to operate within our financial framework could lead to the group becoming financially distressed leading to a loss of shareholder value. Commercial credit risk is measured and controlled to determine the group's total credit risk. Inability to determine adequately our credit exposure could lead to financial loss. A credit crisis affecting banks and other sectors of the economy could impact the ability of counterparties to meet their financial obligations to the group. It could also affect our ability to raise capital to fund growth.
 

Crude oil prices are generally set in US dollars, while sales of refined products may be in a variety of currencies. Fluctuations in exchange rates can therefore give rise to foreign exchange exposures, with a consequent impact on underlying costs and revenues.

For more information on financial instruments and financial risk factors see 

The group has established a financial
framework to ensure that it is able to maintain an appropriate level of liquidity and
financial capacity and to constrain the level of assessed capital at risk for the purposes
of positions taken in financial instruments. Failure to operate within our financial
framework could lead to the group becoming financially distressed leading to a loss of
shareholder value. Commercial credit risk is measured and controlled to determine the
group's total credit risk. Inability to determine adequately our credit exposure could lead
to financial loss. A credit crisis affecting banks and other sectors of the economy could
impact the ability of counterparties to meet their financial obligations to the group. It
could also affect our ability to raise capital to fund growth.

 

Crude oil prices are generally set in US
dollars, while sales of refined products may be in a variety of currencies. Fluctuations in
exchange rates can therefore give rise to foreign exchange exposures, with a consequent
impact on underlying costs and revenues.

For more information on financial
instruments and financial risk factors see 

Liabilities and provisions
Changes in the external environment, such as new laws and regulations, market volatility or other factors, could affect the adequacy of our provisions for pensions, tax, environmental and legal liabilities.

Operations risks