Business: Insurance and risk management
A critical component of project success is the management of risk. For power generation projects, risk assessment starts with an understanding
your business, risk profile and risk appetite. The risk assessment process evaluates both the likelihood of the unwanted event as well as the consequence. The process is often qualitative in nature – i.e. relative risk ranking, however, a quantitative risk assessment can be undertaken if needed. It is recommended the risk assessment be completed before capital has already been committed as this allows for improved financing opportunities as well as the optimization of costs over the life of the asset. Additionally by addressing risk and insurance issues right from the start, contract negotiations can be targeted, lender/finance parties can be satisfied and the most cost effective risk solutions can be more readily identified and implemented.