ENERGY SECURITY / BUSINESS INTERRUPTION CONCERNS

HS understands the challenges confronting the industries, such as health care, public institutions, data centers, etc., in term their energy security due to both external forces and internal forces.  Recognizing the significant harm and costs incurred associated with business interruptions and unscheduled downtime, we understand that a comprehensive and rigorous approach for risk-based assessments is needed.  HS is confident that we our proprietary ENERGY RISK ASSESSMENT for SECURITY EFFECTIVENESS (ERASE) Program will provide strategies for these institutions to effectively mitigate their risk exposures.

The sole focus of HS is on improving the quality of the success of projects and products by pro-actively identifying and implementing strategies that minimize risk exposures.  This is accomplished by raising the technology bar of excellence to better ensure the integrity of infrastructure processes and personnel safety through its prudent risk management services and unique safety training programs.  Because of its experiences, it is expanding its risk assessment expertise to address all energy security issues.

ERASE Program Objectives
The ERASE Program objectives are:

1. Identification and quantification of risk exposures threatening the security of a the facility’s energy systems.
2. Develop prudent strategies to mitigate these risk exposures.

ERASE consists of the following functional elements:

External Risk Identification and Quantification The Program specifically addresses these categories of risks exposures effecting the uninterruptable availability electrical energy and waste heat supply: Forces of Nature Acts of Terrorism upon energy infrastructure Energy Supply Upsets Development of a Knowledge Basis for the Assets’ Conditions / Risks We strongly suggest that any effective risk management program needs to be fundamentally based upon historical operating data whose analysis provides an accurate picture of the condition of the equipment.  This Benchmarking Analysis effort will also consider such factors but not limited to: Energy producing equipment inventory Equipment age Last date of inspection for equipment Extent of predictive maintenance performed Cost of steam production at the facility Track record of forced outages Estimate the Value for Performance Improvements This process defines the expectations for improvements for each facility, which are customized to support the organization’s corporate goals.  This linkage is important to demonstrate that ERASE becomes a "tool" rather than a separate stand alone effort.  Quantify the economic value of each unit as an operating asset in terms of reliability enhancement or incremental performance improvement.  For example, operating cost reduction may be more significant with respect to certain units within the organization.  Identification of such differences is important in making plant or company-wide allocation of maintenance dollars. Identify Options Not only are economic evaluations done but also prioritization of these options is critical.  The "investment" to reduce the consequence or frequency of occurrence for each risk is adequately defined.  These investments must be weighed against other considerations.  The goal is to give the management a clear snapshot of their options.

Deliverables

Since the Deliverables may change as the project evolves, in simplistic terms, they will consist of the following as a minimum:

• A written risk baseline assessment of the security of the energy infrastructure,
• A written report defining strategies for mitigating the risk exposures at each facility,
• A suggested prioritization of the recommendations to optimize the organization’s return of its investment.
• An overall structured program with customized approaches for each facility,
• Presentation of program’s results to the organization’s management team.