Energy companies are increasingly relying on large-scale investment projects to meet energy transformation needs. However, technical, commercial, political, and industry complexities, combined with investor activism and tighter time constraints, make project delivery challenging. To avoid financial losses and reputational damage, companies are investing in risk management and contingency planning. However, recent project failures suggest that these efforts are not always effective. Project risk management is not enough to prevent major project failures, which are caused by a lack of front-end loading, understanding of interfaces, over-optimistic schedule and cost estimation, poor risk analysis, and cultures of "good news." To improve energy project resilience and face uncertainty with confidence, companies need to invest in more comprehensive risk management approaches that address the complex and evolving nature of energy projects.
