Power and utility companies now need to address new business risks, such as:
- Carbon emission trading scheme
- Contractual liability associated with outsourcing
- Failure to supply - electricity, gas and water
- Climate change - carbon trading/carbon pollution reduction
- Unauthorised trading
- The pressure to maintain market share and client base
- Forced and unforced outages
Traditional risks for power and utility companies remain just as relevant and also need to be addressed. These include:
- Public/products liability
- Injury suffered by third parties (including financial loss)
- Bushfire liability (for specific industry participants)
- Machinery breakdown including business interruption. This is now a major exposure for corporatised and privatised generators - Claims ranging from $20 million to $50 million now occur more frequently
Marsh works with a large number of power and utility companies to manage risks and can provide:
- Business continuity/crisis & emergency management
- Risk profiling/mapping
- The conduct of HAZOP studies
- The completion of fault tree on critical risks
- Detailed fire protection advice
- Maximum foreseeable loss studies (including the impact of bush fires)
- Environmental risk evaluation and funding mechanisms
- Weather products (protect revenue stream)
- Employee benefits consulting and insurance