Baldwin Global Contributes to IRM Report on Energy
Published on Tuesday, January 22, 2019
Kuwait City - While sponsoring and participating in the 2019 Kuwait ERM conference, the Institute of Risk Management (IRM) launched ‘Fuelling the Debate: Latest Risk Management Trends in the Energy Sector 2019’, a report that Alexander Larsen, President of Baldwin Global Risk Services in the United Kingdom, recently led for the IRM, in addition to co-writing a section on Risk Appetite with Ghislain Giroux Dufort, President of Baldwin Global Risk Strategies in Canada.
With this report, the IRM is seeking to provide insights and thought leadership for risk managers in the energy sector (including oil & gas and renewable energy). In addition to the results of a survey on current energy risk management practices, the report provides insights on how energy risk managers can improve their organisations' performance across a range of topics – from safety and sustainability to improving risk maturity and building effective risk cultures.
Alexander Larsen, who is also CFIRM, IRM Trainer and Chair of the IRM Energy Special Interest Group, commented:
“I am delighted that the report has had so much support from the industry itself. From the survey participation and IRM member feedback, to the expert insights of the contributors, this report has truly been an industry-led effort.
Going forward, with the IRM’s support and drive, and with the setting up of the IRM’s Energy Special Interest Group (SIG), we expect that the SIG will continue to drive excellence and thought leadership through numerous initiatives such as the publishing of individual expert insights and articles as well as working towards establishing a regular maturity benchmarking assessment of the industry with established and agreed benchmarking criteria.
It was a pleasure to have worked with so many expert contributors and I would like to thank them on behalf of myself and the IRM for their contributions and professionalism in meeting all the necessary milestones to make this publication happen.”
The report can be downloaded here:
And to join the IRM's Energy Special Interest Group, visit :
https://www.theirm.org/events/special-interest-groups/oil-gas.aspx
The energy sector is undergoing rapid change. According to the survey, following several years of belt tightening and cost cutting, many oil and gas companies are looking to expand into new projects and territories, and into renewable energy sources.
Cost control and safety naturally remain key areas of focus. But the survey found that businesses plan to invest in new projects because they are confident of achieving profits despite a long period of low oil prices.
Strategic risks, the global economy and an evident skills gap are considered top risks. Only 27% of respondents rated green energy as an area of concern over the next five years, raising the question whether the sector has fully digested the regulatory changes that will, for example, see electric cars as the norm in Europe after 2035.
The survey also assessed the level of risk maturity across the industry. The results are a little dispiriting, as the sector scored only three out of five.
Baldwin Global is an independent advisory group offering professional services, education and training in risk governance and enterprise risk management. We help our clients’ boards of directors and management teams attain their objectives by embedding sound risk oversight and management practices into their decision-making process to have a significant positive impact on their business.