What is Hydro One’s Strategy?]
Hydro One’s strategy is to semiannually interview all aspects of the company and evaluate what the biggest risks are to the company. They will rank those risks, and then develop ways to mitigate those risks. Those solutions will be evaluated on the amount of risk reduction per dollar. The most successful and efficient will be implemented for that year. The summary is handed to the Risk Department for finalization. 2.
Why are they spending on the Bruce-Milton/Toronto line and the Smart Meters? They are spending on the Line and Smart Meters to increase customer satisfaction, conserve energy and resources, and to increase capacity to answer demand. 3.
Putting yourself in the shoes of CEO Laura Formusa, what risks does Hydro One face? Risks faced are rising costs, lack of employees, uncertainty in government (upcoming election), safety issues, equipment failures, environment issues 4.
Consider the elements of Hydro One’s ERM process. What are its strengths and weaknesses? Strengths: full involvement of every aspect of the business, large numbers are able to see things that others might not, highly scrutinizing of options to mitigate, efficient Weaknesses: Risk experts are not fully involved until risks have been established by others, options for mitigation not used may be the important ones, only management is involved (what about some lower level workers seeing issues?) 5.
Should private sector companies embrace ERM in a way similar to Hydro One’s approach? I don’t think it would hurt. It’s full enterprise brainstorming. Some people may think of things risk experts maybe didn’t see. If it helps save money, increase customer satisfaction, and mitigates risk- it is probably worth it. 6.
What recommendations would you make to CEO Laura Formusa about the ERM process? I would involve more little people. They may see something that the managers don’t. Get the Risk people involved earlier to help establish options faster.
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