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IRM study reveals key risks and opportunities in energy sector
Written by staff reporter
The energy sector is undergoing rapid change. 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, according to a survey just published by the Institute of Risk Management.
In addition to the clear key areas of cost control and safety, the survey found a sector bouyed by confidence and with plans to invest in new projects, 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 to the IRM's survey 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.
Commenting on the findings of the report, Socrates Coudounaris, CFIRM, chairman of the IRM and Risk Management Director, RGA International Reinsurance Company said: "We are...pleased to have the opportunity to launch the document at the prestigious Kuwait ERM conference taking place today.
"Our relationships with firms in the region have always been excellent and we welcome the opportunity to strengthen them further. Excellence in risk management requires a strong understanding of general concepts and techniques but also an appreciation of the detailed risk landscape in particular sectors.
"Our recent work with Cambridge University took a high level cross sector view of the risk management perspectives of global corporates. This specialised study from our energy specialists complements the Cambridge work with a more sharply focused look at the practical application of risk management in that sector."
Coudounaris went on to detail plans for a special interest group for the energy sector, designed to support risk professionals in the field.
"It is particularly interesting to note that one of the conclusions of this document is that there is great scope for raising levels of risk maturity in this globally important sector. This will require attention to various aspects of risk management and particularly to competence, training and education, raising them to world class standards. The IRM stands ready to play its part in this process."
The report can be accessed here: https://irmcomms.wufoo.com/forms/zfa0jdr0l4827m/
Risk professionals wishing to join the IRM's Energy Special Interest Group should contact: email@example.com