Energy Risk Measurement

Definition

Energy Risk Measurement (also Energy Risk Quantification) is any activity aiming to quantify (produce numerical measures) for the Energy Risk faced by an organization. The risk types in scope for measurement are normally thought to have been isolated in the Energy Risk Identification process that logically precedes Risk Measurement.

Measurement aims to produce a rational, optimized approach towards Energy Risk Mitigation.

Measurement Approaches

Depending on the energy risk sub-type being measured, there is a variety of quantification methodologies and tools.

• Nature of the energy risk factors (their dynamics, timescale, volatility etc.)
• Nature and range of impacts (their probability distribution)

Issues and Challenges

• Non-Quantifiable Energy Risk. Some risk events might be by nature too difficult to quantify in a reliable manner.

See Also

• Energy Risk Identification
• Energy Risk Mitigation
• Energy Risk Management

---