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Risk Management for Energy Companies Reduce Liabilities and Prevent Accidents

As energy companies enter a new era, one with increasingly complex energy projects, it’s important for companies to make sure that they have adequate systems in place, to help them to manage the new risks that they face.

With oil spills and mishandling of recent catastrophes, many energy companies are increasing their risk management systems, to help prevent serious accidents from occurring, and to prevent accidents from developing further, should they develop.

Here are some steps that energy companies can take, to help reduce the chances of a preventable accident from occurring.

Implement Safety Management Systems
While most energy companies implement risk management systems, often this is done only to ensure compliance with regulations. In order to ensure that risk management systems are adequate, companies should take care to ensure that they implement safety procedures based on aggressive risk management strategies that includes appointing safety managers, consistently re-evaluating risks, and offering incentives to ensure accountability.

Assess Risks
Risk awareness starts with risk assessment. Care should be taken to identify hidden risks in operations, including hazards, health, and safety risks. Risks should be evaluated and reduced or eliminated.

Increase Risk Awareness
Risk management procedures should be taken seriously. Most accidents are caused by deviation from rules and procedures, which is why it’s important for companies to implement incentives that will help to increase compliance with the rules. Risk management responsibilities should be clear, and department managers should be held accountable for enforcing safety procedures in their departments. Employees throughout all sectors of the company should be made aware of risks, and aware of the implications and dangers that come with failure to abide by safety policies.

Commit Adequate Resources
Maintenance and safety checks should not be neglected. While companies may be tempted to neglect certain safety measures to achieve financial targets, such as postponing maintenance on equipment, this proves to be dangerous and comes at the cost of increasing a company’s risk of an accident.

Purchase Adequate Insurance
Finally, energy companies should take care to ensure that they have adequate insurance policies in place. Important energy company policies include commercial liability, property insurance, workers compensation and EPLI insurances, and inland marine insurance.

For more information on commercial insurance policies, contact Texas Energy Insurance. At Texas Energy Insurance, we specialize in helping energy companies to find adequate coverage, and would be happy to design an insurance policy for your company, that is tailored around your specific needs.