Risk Engineering

Our expertise in the area of risk assessment and insurance is enhanced by the engineering background of our consultants. Sigma Risk is a licensed consulting engineering firm. Most of our consultants have, inter alia, an engineering background. This background helps us better understand the technical and process nature of our client's business and enables us to perform a complete and accurate risk analysis of all their operational, process and, personnel and public risks.

Valuation

Sigma Risk has developed particular expertise in the valuation of physical assets.

As engineers, we have conducted several dozen replacement cost appraisals and economic valuations for insurance purposes on a wide variety of assets, from commercial real estate and manufacturing facilities to power plants, telecom networks, and even offshore oil and gas platforms. We are subscribers to all of the valuation software used by customary appraisal firms.

Maximum Foreseeable Loss Studies

A maximum foreseeable loss (MFL) study (also called a Maximum Probable Loss or MPL study) is often used as a foundation for establishing insurance coverage and limits for property, business interruption, liability, pollution, crime or cyber insurance. An MFL study is often a requirement in P3 agreements. Insurance underwriters are also interested in such studies.

Over the last twenty years, Sigma Risk engineers have completed more than a hundred MFL studies on a wide variety of infrastructure, real estate, transportation and energy projects around the world. These MFL assignments include windstorm, earthquake, flood, fire, tsunami, pollution, unconfined vapour cloud explosion and collapse.

A Sigma Risk MFL study is technically well considered, well documented, well respected and signed by professional engineers.

Risk Modelling

Risk modelling is an advanced risk assessment technique that involves numerical simulation (i.e. Monte Carlo). It is useful for risks whose event probabilities and consequences can be quantified or estimated from engineering and loss data using algorithms.

We have risk modelled flood, earthquake, hurricane, ice storm, vapour cloud, transportation accidents, general or pollution liability losses, nuclear plant meltdown, and hazardous (flammable or toxic) released.

Climate Change Risk

Climate change becomes a corporate operational risk and insurance issue to the extent that storm intensity, rainfall, flood, and windstorm risk have also changed. Risk assessment of these potentially insurable risks whilst allowing for climate change, both on a physical and enterprise level, is always a part of our advisory service.

Project Risk Management

Several of Sigma Risk's engineers are former project engineers and one is a certified PMI Risk Management Professional (PMI-RMP). We have applied the PMI and other project risk management frameworks to projects of all shapes and sizes: construction projects, transportation P3’s, IT projects, healthcare, nuclear, marine terminal, airport, utility and energy projects.

Our projects have included oil sands, office complex, marine terminal, highway, hospital, property development, nuclear energy and gas utility projects.