Energy Risk Mitigation

Definition

Energy Risk Mitigation (also Energy Risk Elimination, Energy Risk Prevention) denotes any activities pursued for the purpose of reducing or eliminating perceived Energy Risk. It is the elimination, lessening or minimizing of the adverse impacts of a hazardous energy-related event.

The adverse impacts of energy events often cannot be prevented fully, but their scale or severity can be substantially lessened by various strategies and actions.

Energy risk mitigation measures include engineering techniques and hazard-resistant construction as well as improved environmental and social policies and public awareness. It should be noted that, in climate change policy, “mitigation” is defined differently, and is the term used for the reduction of greenhouse gas emissions that are the source of climate change.

Approaches

Implementation of measures to deter specific threats to the continuity of business operations, and/or respond to any occurrence of such threats in a timely and appropriate manner. Very broadly all strategies involve a combination of:

• Attempting to modify the Energy Risk Profile of the entity.
  • Diversification of Energy Supplier, Energy Source
  • Improvement of Energy Use Intensity (achieving more with less Energy Consumption)
• Obtaining some form of Insurance

Issues and Challenges

• Energy Risk Culture
• Cost considerations

See Also

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