Risk management in the Power-to-X industry
As Power-to-X is still an immature technology risk management is of utmost importance to ensure the safety of people and equipment, and to protect the capital of the project owners.
The desire for a fossil free future inevitably calls for the use of green energy sources and to succeed, we need to be able to convert and store the green power via Power-to-X plants. As Power-to-X is still an immature technology a lot of uncertainty exists in developing this heavy-investment industry.
Hence there is a considerable need for risk management in establishing Power-to-X sites, and it may be hard to establish the total risk as many project owners may lack an overview of all possible factors of failure.
Integrating risk management into financial management
Risk management is a management tool that has been used for years, but now we integrate risk management with financial management. Project management establishes financial reserves for the Power-to-X facility and proper risk management reduces your drawings on the financial reserves considerably as major risks are handled and reduced during the project.
Risk management increases the possibility of succeeding at estimated cost and time
FORCE Technology provides a range of services in risk management. You are able to get assistance from the early concept phase, through all stages of the project as well as in the operation phase.
FORCE Technology can assist you with the following services in risk management:
Risk management services
Inherent Risk Lists help you understand all potential risks in your Power-to-X project
With our extensive Inherent Risk Lists your understanding of potential risks is heavily expanded and it is a significant upgrade to the risk management effort in the Power-to-X industry. With our Inherent Risk lists you draw on many years of experience and the extensive knowledge of FORCE Technology experts. The Inherent Risk lists provides you with an improved assurance, that the correct risks are identified. This tool is used in most of our risk management services.
The Inherent Risk List is a complete catalogue of fundamental types of errors. It starts with seven fundamental categories, and then branch out into detailed error modes within each category.
Using Inherent Risk Lists is a simple and effective approach to risk management, and we can customise our generic lists to your specific project and situation.
Risk screening of a single focus point in your Power-to-X project
The risk screening is a one-off exercise focusing at analysing the risk of a single component, system, project, or process. You get a risk management deep dive aiming at describing the risk of special relevance to you.
Maybe you already know where the sore spots are in your project, but you may lack efficient tools to analyse and manage the risks. Therefore, we leave you with a high-quality analysis suiting your specific needs, allowing you to take cost effective measures in handling the risks involved.
Total project risk management performed by an impartial partner
It is an advantage to use an impartial partner to perform the risk management for your entire Power-to-X project. FORCE Technology can offer you a solution that covers your risk management needs from the initial steps of the project until it has been put into operation.
You get a structured approach to risk management, meaning that the risk management effort is broken down into individual risk forums, each with their own true perspective on risk. As a consequence, you obtain unprecedented clarity over risk ownership, and get a high level of accountability in risk treatment.
As projects often have many stakeholders risk management must rise above individual stakeholders´ agendas and provide you with a comprehensive and consistent risk focus in the project.
The project risk management provided by FORCE Technology is fully integrated in Financial management, and allows you to model the need for reserve capital, and to focus on the value generation of risk management by conserving the project owners capital.
Cost and schedule risk analysis (CSRA) for a thorough and very detailed risk analysis
The cost and schedule risk analysis (CSRA) is the most powerful risk management exercise for projects. It is only used in late-stage projects, typically in the construction phase, as a detailed project plan is a prerequisite for a CSRA.
It is a one-off exercise and executed by systematically reviewing every activity in your project plan for risk exposure. Your outcome is risk exposure at activity level and risks that cascade into effects on other activities. It provides you with a unique opportunity to de-risk and optimise your project and improve the cost and schedule performance of the project.
The CSRA is normally done as a sprint over a short period of time ranging from a few days to 2 months depending on the project size, and complexity.
Operational Risk Management (ORM) helps you understand the risks involved during operation
Operational risks are characterised by being rarer, but with potentially large effects. In this environment an unfocused traditional risk management effort will often fail, by being too labor requiring, and by providing an overflow of data that is vague and time consuming to maintain.
At FORCE Technology we can help you establish a focused, and resource efficient ORM process. The Inherent Risk lists help fine tune the risk management work and provide you with new opportunities for corporate governance of risk in operations. You are provided with clarity about management responsibility in risk analysis and treatment and your performance in e.g., safety and financials are improved throughout your organisation.
Experts in failure and damage analyses are a perfect match for managing your risks
FORCE Technology holds vast experience in solving all kinds of failure and damage analysis. Hence, our experts are aware of all kinds of failure modes, which may exist as risks in your projects today. We are ready in assisting you in identifying the risk, handling them, and thus avoid serious failures and damages in your Power-to-X project.
Moreover, our many laboratories and facilities can test and examine materials and components to see if they are the proper match for your production facility.
Please do not hesitate to contact us to learn more about how you can reduce the risks considerably in your Power-to-X projects.