Energy Risk Analysis
Definition
Energy Risk Analysis (also Energy Risk Assessment) is the overall process of Energy Risk Identification and Energy Risk Measurement, a set of analytic and/or quantitative activities that supports Energy Risk Management. It can be considered the union of the two first pillars of a formal Energy Risk Framework (thus not including Energy Risk Mitigation).
Approach
Energy Risk analysis entails identifying the energy risks to an organization, assessing the critical energy flow necessary for an organization to continue business operations, defining the controls in place to reduce organizational exposure to Energy Risk Events and evaluating the cost for such controls. Frequently it involves also the quantification of threats to an organization and the probability of them being realized.
Methodologies
Energy risk analysis may or may not be dependent on quantification and risk models, but typically does involve structured analysis and interpretation of data.
