Disruption, uncertainty and the role of risk management in the energy and renewables sector
As the global professional body for the risk management sector, the Institute of Risk Management is delighted to publish this document from one of our member experts in the energy sector. Following on from the Energy and Renewables Special Interest Group’s publication last year “Fuelling the debate - Latest trends in Energy” which was based on a survey filled out by risk managers globally in the energy sector, to better understand areas of improvement and concern, we have encouraged our members to provide further thought leadership articles and publications linked to the findings.
This publication, by Grant Griffiths, Deputy Chair of the IRM Energy and Renewables SIG, explores the latest industry trends and challenges and risk management’s crucial role in underpinning the future success of the global energy sector. Alexander Larsen, CFIRM, Chair of the Group was also a key contributor.
The report sets out some of the key trends such as the drive towards a greener economy, energy transition and its challenges, the strategic and operational aspects of these and risk management’s role in the changing energy landscape, as well as the recent shifts in market prices, cyber and digital innovation and risks. And then the Covid-19 pandemic struck, bringing even greater disruption to the energy sector at a time when the sector is already under immense scrutiny and pressure to change and transform.
Grant Griffiths tells us more:
“The level of uncertainty brought about by the perfect storm of events for the energy sector in the early part of 2020 has been a wake-up call on an unprecedented scale.
As risk and resilience professionals, dealing with the present and preparing effective strategies has never been more important.
Our SIG survey highlighted, and was reinforced in the findings from the IRM’s wider Covid-19 global survey, the criticality of having established risk and business continuity management capabilities as an integrated element of a well-run enterprise.”
Rahat Latif, CMIRM, Chair of the IRM Interest Group Committee adds:
“I’d like to thank both Alexander Larsen as Chair and Grant Griffiths as Deputy Chair for their ongoing commitment and support for the Energy SIG. Without our volunteers we would not be able to produce such high quality sector specific insight.
Risk management as a profession is rightly now recognised as essential in delivering positive outcomes and business success. Given the nature of the energy business we foresee challenges - but we also see an unprecedented level of opportunities for building sustainable, future-proof businesses for those who understand how to leverage risk management and business continuity practices.
As businesses enter into the recovery stage post pandemic, it has never been more important to have qualified risk managers at the heart of business decisions to protect the global economy and ensure business resilience in the future.
I would ask anyone working in the energy and renewables sector to visit the SIG webpage and find out more information on how to join our growing global membership and contribute to the ongoing debate.”
To download a copy of the report (behind a short data capture form) please visit: https://irmcomms.wufoo.com/forms/q1h50cd30s16uxn/