There is no doubting the horrific nature of the environmental disaster playing out in the Gulf of Mexico and, given its on America's doorstep it is right that it should be asking probing questions about how this could be allowed to happen - criminal investigations even. However, some self analysis may also be called for. Let's not forget that the US, despite having only 3% of the worlds oil reserves consumes 25%. In addition, in order for BP to gain permission to drill in the deep waters of of the Gulf of Mexico it requires federal regulator Minerals Management Service permission - and to gain this it had to submit self written documents setting out its oil spill response plan. So no independent assessment or analysis. Let's not also forget that the Rig itself was operated and maintained by a US company - BP's involvement comes from its contractual ownership of the oil pumped. Perhaps we should be grateful then that BP, has thrown itself into the clean-up both financially and with the wealth of engineering know-how (which admittedly has so far proved to be untried & untested). While the ecological disaster may be far from our shores - the financial implications are not. The fall in BP shares accounted for 11% of falls on the FTSE and will dramatically impact most people on the high street given it forms a significant portion of the portfolio of pension funds. Little wonder then that a meeting is scheduled between BP and the major institutional investors. And what lessons for business? Know your risks. Quantify your risks. Manage your risks.