Risk Analysis in Energy Program Management

Abstract

Risk management is one of the best precautionary interventions undertaken in various sectors to minimize the consequence that accrues whenever risks or crises occur. Risk assessment is the first step in the risk management process, and it leads to risk identification, which is followed by risk evaluation to understand the magnitude and possible impact of the risk in case it occurs. Risk assessment and management in the energy sector are not exceptional since risks related to energy are usually catastrophic and lead to loss of life and destruction of the environment. The increase in risks related to energy use and the complexity of managing such risks necessitates the adoption of appropriate risk assessment and risk evaluation mechanisms to guarantee high-quality speculation and forecasting. This report focuses on the use of a semi-quantitative risk assessment approach and the threat-based risk assessment approach. Each of these techniques uses a different paradigm but they all offer invaluable findings regarding risks in the energy sector to enable effective prioritization of such risks when designing interventions.