The pros and cons of energy systems have never been as critical as they are today. Energy sources, irrespective of how “green” they may or may not be, present associated risks: financial, environmental, personal, etc. Traditional thinking just assumes that “green-equals-good”, but there are strong considerations which must be applied when harnessing something as powerful as energy. This is exactly what the international risk assessment organization, Der Norske Veritas (DNV) set out to discover.
Founded in 1864, DNV’s original mission was to inspect and evaluate the technical condition of Norwegian merchant vessels. Today, DNV assesses project risk across a number of industries, like rail transportation, healthcare, telecommunication and food and beverage companies. For its energy systems project, DNV utilized Monte Carlo simulation to identify environmental and financial risk factors of non-traditional (wind and solar) and traditional (nuclear waste storage, oil and gas and CO2 recycling) energy systems. Utilizing @RISK’s triangular distribution in its projection models, DNV uncovered some very interesting findings.
This research offered the energy industry a real world-examination of how to operate with risk and highlighted a key facet of DNV’s mission: Assessing risk doesn’t mean eliminating it (that’s unrealistic, if not impossible). Rather, assessing risk incorporates an honest look at factors that may do harm, determining their probability and constructing a business model that minimizes the potential impact those factors can have. We, at Palisade couldn’t agree more. We’re excited to be associated with DNV and the work they do to make the energy industry — and many others — safer for all.
» Read the complete case study about DNV's use of Palisade risk analysis solutions
EMEA Managing Director of Risk & Decision Analysis