To help clients understand and improve their risk profiles and reduce the occurrence and magnitude of losses, Marsh’s risk engineers survey key energy assets such as refineries, petrochemical sites, and gas processing plants. A principal aim of these surveys is to enhance organizations’ risk profiles by issuing risk improvement recommendations.
Global Trends in Energy Risk Recommendations examines more than 4,000 recommendations that were made through more than 700 surveys to extract key insights into localized behaviours, trends, and improvement areas, which will help decision makers recognize and remediate risk.
The report concludes that there are several opportunities for risk improvement in the energy sector, particularly relating to management systems, which accounts for the greatest number of overall recommendations. Gaps in the application of these systems are significant contributors to some of the largest historical losses in the energy sector.
Budget constraints in the energy sector, driven in part by oil price volatility and an uncertain economic climate, should make the financial benefits of risk improvement more attractive.