Risk Management
Risk Management and Control
-------------------------------------------------
Case Hydro One
Table of Content
1. Introduction 3 2. Hydro One’s Strategy and risks 3 3. Major drivers to get started with ERM at Hydro One 4 4. Different stages of Hydro One’s ERM process 4 5. Up- and downsides of the ERM process 5 6. Framework 5 6.1 Establishing the context 5 6.2 Risk assessment 5 6.3 Risk treatment options 6 6.4 Communication and consultation 6 6.5 Monitoring and reviewing 6
1.
Introduction
Hydro One is a transmission and distribution organisation of electricity, located in Ontario, Canada. The company generates its electricity at the Niagara Falls and distributes it to various Canadian provinces and the United States. Founded in 1906 as the Hydro-Electric Power Commission, the corporation was later renamed to Ontario Hydro in 1974. In 1998, the provincial government passed the “Energy Competition Act”. Ontario Hydro was restructured into two separate organizations: a power generation utility and a combined transmission/delivery business to be called Hydro one.
2. Hydro One’s Strategy and risks
Hydro One's strategy has changed a lot during the last years. First of all, the company thought they knew what was best for their customers. Eventually their focus changed into a more customer-based strategy. With the change in their focus in addressing the needs of their customers, customer satisfaction has, in some areas, doubled. Although results have been positive, problems for the electricity supply in the future might decrease the satisfaction of the customers. In the corporate risk profile trends, the electricity supply has become one of the biggest risks with a rating of ‘virtually certain’. Only “government policy uncertainty” and “getting the work done” have the same level of risk. In the impact-probability risk map of the firm, it is clear that problems with the electricity supply are quite probable and that the
-------------------------------------------------
Case Hydro One
Table of Content
1. Introduction 3 2. Hydro One’s Strategy and risks 3 3. Major drivers to get started with ERM at Hydro One 4 4. Different stages of Hydro One’s ERM process 4 5. Up- and downsides of the ERM process 5 6. Framework 5 6.1 Establishing the context 5 6.2 Risk assessment 5 6.3 Risk treatment options 6 6.4 Communication and consultation 6 6.5 Monitoring and reviewing 6
1.
Introduction
Hydro One is a transmission and distribution organisation of electricity, located in Ontario, Canada. The company generates its electricity at the Niagara Falls and distributes it to various Canadian provinces and the United States. Founded in 1906 as the Hydro-Electric Power Commission, the corporation was later renamed to Ontario Hydro in 1974. In 1998, the provincial government passed the “Energy Competition Act”. Ontario Hydro was restructured into two separate organizations: a power generation utility and a combined transmission/delivery business to be called Hydro one.
2. Hydro One’s Strategy and risks
Hydro One's strategy has changed a lot during the last years. First of all, the company thought they knew what was best for their customers. Eventually their focus changed into a more customer-based strategy. With the change in their focus in addressing the needs of their customers, customer satisfaction has, in some areas, doubled. Although results have been positive, problems for the electricity supply in the future might decrease the satisfaction of the customers. In the corporate risk profile trends, the electricity supply has become one of the biggest risks with a rating of ‘virtually certain’. Only “government policy uncertainty” and “getting the work done” have the same level of risk. In the impact-probability risk map of the firm, it is clear that problems with the electricity supply are quite probable and that the