Risk Management
Turning risks into opportunities and improved business performance
For better energy projects
Wind and solar projects are complex and CapEx-intensive. If developers cannot convince financiers or investors that they are in control of the majority of risks, contingencies will go up, making a project unnecessarily expensive.
By gaining understanding and control of your risk profile, an extra 4-6 percent should be built into the CapEx for contingencies versus the 10 or 15 percent contingency that banks will request if the project risk hasn’t been fully explored.
Using tools like Monte Carlo simulation we look at all risks associated with a wind or solar project. Beyond the typical project-related risks like health & safety and environmental risks, our analysis considers risks from the entire value chain including contractual, commercial, organizational, legal and political implications giving a complete picture.
K2 Management has developed a set of industry-tailored tools and services, on the back of our involvement in 1000+ wind and solar projects, that provide asset owners and investors with a bankable assessment and mitigation of project risks.
In many cases we turn risks into business opportunities, if handled properly.
It is common to identify between 500-1000 risks for a given project and we prioritize and rank them based on a combination of the individual client’s risk appetite and according to business impact.
The risks are then assessed and calculated according to expected costs plus best and worst case scenarios with P50 and P90 standards.
STRATEGIC RISK MANAGEMENT
Risk assessment and advisory to understand and prioritize the organization’s strategic project risks.
QUALITATIVE RISK ASSESSMENT
Ranking identified risks and opportunities with respect to impact and probability.
QUANTITATIVE RISK ASSESSMENT
Quantification of the combined effects of the identified uncertainties and risks associated using P50 and P90 standards, mitigation plans and re-calculations.
MITIGATION STRATEGY & GAP ANALYSIS
Working closely with clients to develop a robust and effective mitigation strategy to drive down impact of potential risks.
RISK MONITORING
Development of monitoring plans. Independent peer reviews of risk management plans, risk registers and models. Assessment and audit of project risks.