Risk exposure to businesses, projects and operations ~ Insurance Academy

There are at least four risk exposures to businesses, projects and operations, including:

• Human Resources Assets
• Physical Assets (Buildings, Offices, Processing Units, Maintenance Facilities, etc.)
• Movable assets (Heavy Machinery, Plant & Equipment, Vehicles)
• Liability

Risks and considerations

There are 4 (four) risks that need to be considered in risk management, namely:

Physical

• Natural disaster / catastrophic risk
• Risk of intersecting or existing buildings
• Transit (sea and land) and warehouse storage
• Added risk of wet / “wetworks” (eg jetty, etc.)
• cloud vapor or fire pool
• Weight lifting or tandem
• terrorism

Technical

• Untested or upgraded equipment
• Testing and commissioning
• Substandard quality control
• Substandard fire protection equipment
• Incorrect design, workmanship & materials
• Highly flammable raw materials
• Insurance Bonds on existing facilities

Financial – delay

• Loss of income / Loss of profit
• Off-Taker/Prolonged Credit Risk
• Default & Bankruptcy
• Service payable
• Increased work costs
• Force Majeure – non-damage delay (over-running)

Legal or contractual

• Surrounding property
• Professional indemnity
• Robust liquidated damages
• Tie in to existing facilities
• Contractor experience
• Attention to safety and environment
• Contractual structure (EPC, etc)
• Political risk