For more than 25 years, Scott Sink has served as the senior executive vice president of McGriff, Seibels & Williams, Inc., in Birmingham, Alabama. In this capacity, Scott Sink of Birmingham and his colleagues provide insurance brokerage and risk management services to gas and electric utility companies around the United States.
Due to the inherent volatility of the energy and utility sector, many companies operating in this field can benefit from enterprise-wide risk management (ERM). A comprehensive process, ERM involves identifying, assessing, and preparing for any figurative and physical issues that may negatively impact a business’s operations and, thus, affect its ability to achieve its objectives.
In the past, managing this risk has largely been done by obtaining different types of insurance, such as property insurance and liability insurance. However, ERM plans address a larger number of potential dangers and obstacles than what insurance policies are capable of. This includes supply chain, expansion, and technology obstacles.
Businesses in the utility sector benefit from ERM programs since they ensure that risk mitigation and prevention plans are effective, in addition to increasing awareness of risk events. This knowledge is integrated into the daily operations of management and employees, which allows the plan to help management effectively deal with uncertainty in the market.
