In the energy industry risk is always a worry. Whether you’re part of a national oil company or a sole trader, when you deal in oil, coal and power supplies there is always a significant risk of loss occurring due to the amount of economic changes affecting the trade. So what are the best ways to prepare for risk?

Take out insurance

Operational risk management is now an integral part of many companies’ policies and energy liability insurance is a great way to ensure that you’re protected from both offshore and on shore risks. Taking out specific energy liability insurance like the one offered by X L Catlin Insurance gives you peace of mind and covers against all the important risks from the exploration and production phases. Find the right policy for you whether you work in the upstream, downstream or midstream sector and the insurance provider will work out the level of risk and create a risk management plan tailored to your needs.

Focus on asset management and production management

Managing these areas as a critical part of your strategy does huge amounts to protect against risk. If you focus on protecting and retaining the assets you already have you’ll encompass a certain level of financial stability and be able to think of this as a safety net.  The advantages to focusing on production management and supply chain planning mean that if anything is to go wrong you’re already working on new lines as a backup.  

Protect your employees

Due to the risky and more volatile nature of the energy industry it’s essential that you go for an insurance provider who understands the variabilities of the commodities. Do all you can to ensure that you keep your employees and assets as safe as possible. By investing in the correct health and safety training and not skimping on any areas of employee development this should in turn create a safer work force leaving less room for any risk. Always go for the most reliable and recommended PPE and ensure all employees are competent before releasing them from training.

As the energy industry is always changing it’s very hard to completely prepare for risk as it’s difficult to predict problems which may arise. By taking the above steps you should be able to protect your business against risk to a certain extent and with the correct insurance provider be able to deal with and recover from any possible setbacks which may occur.