Risk Engineering for the Energy Sector: Property & Casualty
- Samantha McKeag
- Dec 15
- 4 min read
Part 3 of WMB's 4-part series on Risk Engineering
To view the full report, click below
What is Risk Engineering?
Managing, Eliminating and Mitigating Risks in a World of Uncertainty
While risk management focuses on the business’s overall risk environment, risk engineering focuses on the risks that could lead to significant physical, personnel, business interruption, and/or financial loss.
The core principals of effective risk engineering include:
Minimizing frequency and severity of incidents should they happen
Implementing sustainable risk control procedures
Significantly improving the organization’s safety operations
Analyzing data and insights to determine the best course of action
"Risk engineering plays a critical role in identifying and mitigating potential sources of property, casualty, and liability loss before they occur. By conducting comprehensive hazard assessments and loss-control evaluations, insurers and energy firms can proactively reduce the likelihood and severity of claims, support operational resilience, and optimize insurance terms and pricing." -- Swiss Re, Corporate Solutions, 2022
Risk Engineering for the Energy Sector: Property & Casualty
As with any commercial enterprise, there are inherent risks that must be managed to leverage financial gains. Some of the most crucial risks include:
Key risk factors include:
Fires & explosions
Natural Catastrophes
Security & Theft
Building Integrity and Maintenance
Business Interruption & Continuity Planning
That said, risks are not made to scale. Every business, its property, and its assets are unique which means that to obtain insurance coverage that covers all the bases, the insurance policy must be
unique, as well.
For this reason, commercial enterprises should be as concerned about their property & casualty risks as they are with their operational risks.
An Industry Built on Risk
The energy industry — spanning oil & gas, power generation, renewables, chemicals and petrochemicals — involves high-value assets, operational hazards, environmental exposures, and significant liability risks. Risk engineering focuses on reducing loss frequency, loss severity, and
business interruption, while supporting more favourable insurance placement and pricing.
The Risk Engineer's Assessment
Property Risk Assessments & Asset Protection
Assesses fire suppression systems, detectors, and emergency shutdown procedures.
Conducts explosion modeling and evaluate safe distances between critical infrastructure.
Ensures maintenance and adequacy of pressure relief systems.
Provides recommendations for improved firewater systems, foam suppression, and chemical-based extinguishing systems.
Monitors training activity for fire response protocols to reduce damage and improve life safety.
Auditing of Emergency Response Procedures
Audits site-specific emergency response plans tailored to drilling rigs, production facilities, and refineries, and petrochemical plants
Evaluates tabletop exercises, live drills, and incident simulations to test readiness.
Assesses the training of employees and contractors on evacuation procedures, hazard isolation, and communication protocols.
Contractor & Workforce Safety
Audits contractor safety programs to ensure compliance with company and regulatory standards.
Assesses behaviour-based safety (BBS) training to foster a culture of awareness and accountability.
Implements competency verification programs to confirm that personnel are qualified for high-risk tasks.
Business Continuity & Supply Chain
Assessments of critical suppliers and evaluate the resilience of distribution networks.
Develop strategies to mitigate downtime caused by equipment failure, natural disasters, or geopolitical risks.
Support contingent business interruption (CBI) coverage by quantifying potential financial impacts.
Review risk engineering insights with underwriting to set appropriate coverage levels and limits.
Regulatory Compliance & Standards
Provide guidance on compliance with local building codes, OSHA, API, ISO, NFPA, CSA, and local safety regulations.
Assist with audit preparation and post-audit remediation strategies.
Support the creation of documentation and reporting systems to demonstrate adherence.
Offer updates on evolving safety, environmental, and operational regulations.
Equipment Integrity & Reliability
Performs inspections and assessments of pipelines, pressure vessels, heat exchangers, and rotating equipment.
Utilizes non-destructive testing (NDT) methods to detect early signs of wear, corrosion, or fatigue.
Establishes guidelines for equipment lifecycle management to avoid unexpected failures.
WMB Global Risks Has You Covered
At Wilson M. Beck Global Risks, we are fortunate enough to have a risk engineering consultant on staff - and we are one of the very few. With over 40 years' of experience, Owen Kurin - our risk engineer - follows an 8-step process:
Risk Identification
Risk Assessments and Analyses
Audit of existing risk management strategy
Audit and recommend risk control measures to improve loss prevention
Evaluate existing control measures
Recommend, advise, and educate
Monitor performance and track the data
Tweak and make adjustments
For the oil and gas industry, a risk engineer is invaluable. Not only could it protect your operations and your bottom line, but it help save lives.
For a more detailed breakdown on how a risk engineer can benefit your oil and gas business, download the full report and get the information you need to stay resilient, compliant, and in business.
At WMB, we safeguard your oil and gas operations from every angle. Our risk engineering expertise and customized coverage solutions work together to protect your assets, ensure regulatory compliance, and strengthen operational resilience — so you can focus on driving performance and growth with confidence.
Get the WMB Difference
Need Help?
Contact Wilson M. Beck Global Risks to discuss how to protect your business - wherever it takes you.
Wilson M. Beck Global Risks Inc. is a boutique division of Wilson M. Beck Insurance Services, offering tailored insurance and risk management solutions backed by over 100 years of combined experience.
Our team delivers personalized service rooted in trust, collaboration, and genuine care, ensuring every client feels understood, supported, and confident in their protection.
Our specialization in multinational insurance and corporate risk solutions is designed for mid-sized to large organizations that demand personalized service, specialized expertise, and seamless execution – wherever your business grows.
Contact Wilson M. Beck Global Risks to find out more about how our team of global experts can protect your operations and help keep you resilient, compliant, and in business.
We Care. We Help.
References:
Promoting risk engineering as part of a healthy risk culture | Swiss Re. (2024, August 6). Promoting Risk Engineering as Part of a Healthy Risk Culture | Swiss Re. https://corporatesolutions.swissre.com/insights/knowledge/promoting-risk-engineering-as-part-of-a-healthy-risk-culture.html?utm_source=chatgpt.com