Government Institutions and Utilities

ERM for Government InstitutionsThe exposures of one individual government institution may be totally different from those of another. Because of this, a comprehensive risk assessment using our Activity-Based ERM© is necessary to accurately determine the most appropriate risk management strategy.

Resource Risks for Government Institutions and Utilities

Government institutions have large buildings, vehicles and equipment. The buildings may be at a single location or spread out over a number of facilities. This creates large property exposures that are best mitigated by the use of insurance. Our Insurance RFP© can help government institutions and utilities to purchase insurance.

One large cost driver for most government institutions is energy cost.  For those with multiple locations, our Utility Risk Manager© (URM) can help the manager to reduce its cost by tracking energy usage, auditing its energy bills and hedging its risk .

For Public Utilities, energy may be their  raw material and product at the same product. They usually receive electricity and natural gas from energy suppliers and deliver it to their residential, commercial and industrial customers. For them, hedging their energy risk is not optional – it’s a necessity. Our Hedging Master© can help Public Utilities do physical hedging directly from the supplier.

Activity Risks for Government Institutions and Utilities

Government institutions and utilities perform a series of activities that once operated under the concept of sovereign immunity and did not need to worry about the possibility of experiencing a liability loss as a result of a suit. While this doctrine still exists,  it has experienced significant modification, especially when the government entity handles functions that can also be handled by a private commercial enterprise. With increasing lawsuits, providing adequate liability protection is essential (see our Insurance RFP©).

Because governmental operations must continue  under any circumstances, these institutions must have  a Business Continuity Plan (BCP) explaining how to respond to an emergency (Emergency Response Plan-ERP) and how to properly recover from it (Continuity of Operations-COOP). Our Insight BCP© helps to plan for and respond to emergencies.

Service Risks for Government Institutions and Utilities

Like other service providers, many of the activities these institutions perform are also the services to their customers, creating activity and product (service) exposures at the same time. Due to strict and absolute liability laws (as well as the nature of the services provided by these institutions) there is always the possibility that the institution may become legally obligated to pay damages.

Insurance is the best way to transfer risk of events that are totally unpredictable (see our Insurance RFP©). In addition, our Activity-Based ERM© can help such institutions identify and mitigate these service related exposures.