Aon’s risk consulting and actuarial teams have developed a three-step process to enable energy firms to make informed decisions about risk management. First, analysis is undertaken to identify the firm’s tolerance to financial shock. These insights are then considered against strategic objectives to determine a qualified risk appetite. Risk appetite is then modelled against loss and premium data to determine the risk profile. These data-driven insights enable us to design an insurance programme which optimises risk retention relative to commercial risk transfer options and alternative risk solutions; for example, self-insurance, captive solutions and/or mutualisation.