Risk Engineering for the Oil & Gas Industry
- Samantha McKeag
- Dec 8
- 4 min read
Part 2 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
41% of organizations report that they experienced three or more critical risk events since 2023 and 35% of risk executives blame compliance and regulatory risks as their greatest threat
Risk Engineering and the Oil & Gas Industry
The oil and gas industry is one of the highest-risk industries, with exposures across multiple areas and risks spanning several key domains. This makes for securing appropriate and extensive insurance coverage challenging.
Key risk factors include:
Operational & Safety Risks
Financial & Technology Risks
Legal & Social Risks
Environmental & Climate Risks
For organizations within the oil and gas industry looking to maximize their risk management strategy, a risk engineer is the safest bet.
While Risk Management focuses on identifying the risks and creating strategies to minimize the impact should an event occur, a risk engineer performs a multitude of surveys, data-led assessments, and audits to determine:
What the risk is
Where the risk comes from
What the data says about the risk
What organization's processes are currently in place to manage the risk
Provide in-depth and meticulous reports about said risk with recommendations on how to implement these changes and monitor effectiveness.
An Industry Built on Risk
While all industries have a certain level of built-in risks, not all of their operations include high-level risk. However, the oil and gas industry is risk. There is very little about the oil and gas industry that isn't risky. As a nearly-trillion dollar industry, risk can be costly for this industry. Even a minor glitch in the system can cause significant injury, loss of life, and/or create a huge financial burden.
For the oil & gas industry, risk engineering isn't an option - it's vital.
Here are some ways in which a risk engineer can significantly decrease the cost of risk:
Fire & Explosion Risk Assessments
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.
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