Energy and Natural Resources
Learning to love uncertainty in energy and resource industries
As the business world becomes less certain, techniques many resource companies typically use to manage risk are becoming far less effective.
Risk resides in simple choices with knowable probabilities-think of the roll of a dice-but uncertainty arises in messy situations, where we cannot know the probabilities. Risk can be insured, but uncertainty has to be continuously managed. Hedging supplies, fixing supplier and customer contracts, even hiring the 'right' people may no longer be enough.
Successful resource companies will be those that use scenario-based approaches to strategic planning, and have a portfolio of real options - projects focused on avoiding risks, along with those which embrace opportunities.
We can help you design and deliver initiatives that deal with global disruptive change, bringing you bolder decisions and better resilience.
By supporting your energy and resource scenario planning, asset investment strategy, value chain organisation and strategic sourcing, our strong analytical skills will give you greater clarity around:
- Major capital investment/divestment decisions, restructuring or mergers and acquisitions
- Managing growth - increasing capacity, or using what you have more effectively
- Fact-based analysis to support complex business resource allocation issues.