If you are the facilities manager of your company or the person in charge of the energy consumption of your building and activities, you are probably very good at staying on top of all the basic tasks related to meeting your energy goals. From heating to lighting to other uses of energy, you’re most likely very familiar ways to optimize your energy consumption to save money and reduce your carbon footprint.

Plus, if you’re already enjoying the consulting services from Energy Network, you’re also aware of how to acquire electricity cheaper by purchasing it wholesale from power plants that have an energy surplus. (If you don’t yet have an energy consultant, what are you waiting for? Your consultant can give you insider tips on saving money on energy and reducing your fixed costs.) In this blog post from our energy management company, we’ll take a brief look at risk management in your energy strategy and some things that you should be aware of.

1. Evaluate The Potential Energy-Related Risks You Face

Think about it: If the power goes out, you could be dead in the water. You don’t want to be scrambling to make do in an emergency or be caught unaware when you could have been prepared. Make a list of the different risks, emergencies, or potential hazards that you could face related to your energy consumption and usage.

2. Plot the Different Risks According to Two Factors: Likelihood and Impact.

Rate each of the risks you’ve identified according to two metrics, likelihood and impact. One way to do this is to create a simple spreadsheet as follows:

  • Make a list of risk factors in Column A.
  • In Column B, assign a score from 1-10 for the likelihood of each item (1 = very unlikely; 10 = highly likely).
  • In Column C, assign a score from 1-10 for the impact of each item (in other words, how much would it affect your business or destroy your profits if such a scenario were to play out).
  • In column D, total up the sum of the scores between column B and C in each row.
  • Arrange the sheet from the highest number to the lowest in column D and make the highest-scoring risks your top priority.

3. Create a strategy and/or policy for what to do in the event of each scenario

Once you’ve listed and prioritized the risks that you could face, think through the ways that you could either mitigate this risk or overcome it. For instance, if the power goes out due to severe weather, you would want to define your strategy and approach. Would you run backup generators, close your operations that day, or do a combination of having people work from home and doing some provisional work with the help of your generators? The nature or your work and urgency of your tasks will affect what strategies you choose, as will the cost of any risk mitigation steps you take, so the exact policy you choose will vary from company to company.

Contact our Energy Consultants today

Risk management is at the heart of a solid energy management strategy, and our consultants are here to help you all the way. Contact us today to get started.