
Chapter 12
Business: Insurance
and risk management
Scott Reynolds
A critical component of project success is the management of risk.
For power generation projects, risk assessment starts with an understanding
your business, risk profile and risk appetite. The risk assessment process evaluates
both the likelihood of the unwanted event as well as the consequence. The process
is often qualitative in nature – i.e. relative risk ranking, however, a quantitative risk
assessment can be undertaken if needed. It is recommended the risk assessment be
completed before capital has already been committed as this allows for improved
financing opportunities as ...