FREE: Introduction to Uptime Elements Reliability Framework and Asset Management System

Risk management engineers are engineers appointed by insurance companies to determine the risks associated with a particular facility. The engineers may be employees of the insurance company, or be consultants appointed by the insurer to look at a particular risk.

The background of risk engineers can vary enormously, and each insurance company has its own particular philosophy and method of choosing its engineers. Some of the largest insurance companies employ hundreds of risk engineers world-wide. In addition, some insurance companies value certain risk engineering skills above others. For example, one major world player in the insurance market favours engineers with a fire systems background, while others take a more general and holistic approach to risk identification and management. One company that I know of has a policy that all risk engineers require at least 20 years experience in major industrial companies, and at least 5 years executive experience at plant manager level or higher.

In general, the risk engineer appointed to look at a particular plant is a specialist in that industry. However, it does not always work out that way. Risk engineers are assigned to projects based not only on their experience and expertise, but also on logistical criteria, such as who is available at a particular place at a particular time. While this may seem counterproductive, it is often beneficial for someone from a different industry to look at your plant and asset management systems. In fact, insurance companies will routinely send different engineers to sites over a number of years to get a different set of eyes looking at the assets.

From a client’s point of view, it is important to know the background of the risk management engineer appointed by the insurer to look at your plant. Ask for the engineer’s resume and look closely at their work history and experience. Every engineer has a specialty area or two, and it is worth knowing what these areas are prior to the survey being undertaken. This will give you a good guide as to the particular interests of the engineer, and may prepare you for some of the more esoteric questions that will be raised during the survey.

Invariably, the risk engineer will be an experienced person. Risk engineers carry out somewhere between 30 to 40 risk surveys per year. If they have been working in the industry for a number of years, they will have seen hundreds of sites, ranging in risk quality from the best of the best to the disasters waiting to happen. They will have worked with companies who are fully cooperative, who view the risk survey as a benefit, and who actually value having an additional experienced person look at, and comment on, their systems. The engineer will have also worked with companies who give the risk survey a low priority, or worse still, companies who are overtly suspicious of the process. Whatever the reception, it is unlikely that the risk engineer will come across issues that he hasn’t seen before.

For the client’s staff who is assigned to be involved in the insurance engineering review, first impressions set the tone for the review. A positive attitude, and the ability to effectively interact with the risk engineer, are critical to the success of the process. Staff selected for the review should be both knowledgeable, and relatively senior, as the responses noted by the risk engineer may, in fact, become legal documents in the event of any future litigation.

Tip from Engineering Asset Management: An Insurance Perspective by Ian Barnard


Upcoming Events

August 8 - August 10, 2023

Maximo World 2023

View all Events
banner
80% of Reliabilityweb.com newsletter subscribers report finding something used to improve their jobs on a regular basis.
Subscribers get exclusive content. Just released...MRO Best Practices Special Report - a $399 value!
DOWNLOAD NOW
IMC-2022 Who's Who: The World's Best Run Companies

The International Maintenance Conference (IMC) provides a fresh, positive community-based curated experience to gain knowledge and a positive perspective for advancing reliability and asset management through people, their managers, the strategy, the processes, the data and the technology.

Uptime Elements Root Cause Analysis

Root Cause Analysis is a problem solving method. Professionals who are competent in Root Cause Analysis for problem solving are in high demand.

Reliability Risk Meter

The asset is not concerned with the management decision. The asset responds to physics

Why Reliability Leadership?

If you do not manage reliability culture, it manages you, and you may not even be aware of the extent to which this is happening!

Asset Condition Management versus Asset Health Index

Confusion abounds in language. Have you thought through the constraints of using the language of Asset Health?

Seven Chakras of Asset Management by Terrence O'Hanlon

The seven major asset management chakras run cross-functionally from the specification and design of assets through the asset lifecycle to the decommissioning and disposal of the asset connected through technology

Reliability Leader Fluid Cleanliness Pledge

Fluid Cleanliness is a Reliability Achievement Strategy as well as an asset life extension strategy

MaximoWorld 2022 Conference Austin Texas

Connect with leading maintenance professionals, reliability leaders and asset managers from the world's best-run companies who are driving digital reinvention.

“Steel-ing” Reliability in Alabama

A joint venture between two of the world’s largest steel companies inspired innovative approaches to maintenance reliability that incorporate the tools, technology and techniques of today. This article takes you on their journey.

Three Things You Need to Know About Capital Project Prioritization

“Why do you think these two projects rank so much higher in this method than the first method?” the facilitator asked the director of reliability.