British business-government relationships: A case study of the Burmah Oil Company, 1974–1975

This paper presents a case study of the bailout of the Burmah Oil Company Limited by the British government in 1975, focusing on risk, business-government relations, and informality. Analysing negotiations between key governmental and corporate actors at a time of significant economic and political uncertainty, we highlight that while government and business had not developed a structured framework to apply to the economy’s most serious weaknesses, these actors frequently improvised around a theme, in this case, that of risk. We highlight an informal interventionist model within which government was predisposed informally to support businesses in times of crisis. We also highlight that the government dictated the terms of the bailout and imposed risk assessment and monitoring undertaken by private sector accountants. This will illustrate, in a novel manner, how risk management was deployed in the bailout process, the implications of which had beneficial consequences for the company’s continued existence.