Risk Engineering

Sigma Risk is a licensed risk engineering firm. Many of our consultants have, inter alia, an engineering background. This background helps us better understand the technical and process nature of our client's operations and enables us to perform a complete and accurate risk analysis of all their operational, process, public and worker safety risks.

Valuation

Sigma Risk has expertise in the valuation of physical assets for insurance purposes.

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 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 one hundred MFL studies on a wide variety of infrastructure, real estate, transportation and energy projects around the world. These MFL assignments have included windstorm, earthquake, flood, fire, tsunami, pollution, unconfined vapour cloud explosion and collapse.

A Sigma Risk MFL study is both technically advanced and well-documented.

Risk Modelling

Risk modelling is an advanced risk assessment technique that involves numerical simulation of losses using loss distributions quantified or estimated from engineering and loss data using algorithms.

Sigma Risk has modelled risk from flood, earthquake, hurricane, ice storm, vapour cloud, transportation accidents, general or pollution liability losses, nuclear plant incidents, and hazardous (flammable or toxic) releases.

Climate Change Risk

Climate change becomes a corporate operational risk and insurance issue to the extent that storm intensity, rainfall, flood, windstorm and wildfire risk have changed. Our risk assessment of these risks allows for climate change, both on a physical and enterprise level.