Risk management refers to an interactive process consisting of steps, which when undertaken in sequence,
enable continual improvement in decision making. The aim of risk management is to obtain understanding by all
parties and agreement around what the risks really are and how they will be managed to improve performance,
increase the value of firms and reduce financial distress .We used primary and secondary data in our analysis
The study identified risks confronting Tema Oil Refinery (TOR) as instability in global oil prices, depreciation
of the cedi against major currencies, health and safety, political interference, environmental pollution, brain
drain, shortage of crude oil, huge debts as a result of subsidizing of petroleum products by government and
default on the part of oil marketing companies to pay for products and high operational risks .Other challenges
as apathy on the part of staff to abide by safety rules was identified. TOR incorporates risk management in their
strategic plan and have operations and Audit risk department but have been battling with effective
implementation. Made recommendations to government and management of TOR on how to overcome the
problems in implementing risk management in order to achieve the goals of the only refinery in Ghana.