Hydro One Full Case Final
Enterprise Risk Management at Hydro One (A)
Executive Summary
This paper aims to assess the case of Hydro One implementing risk management program to meet the needs of restructuring industry and the market. The overall situation of Hydro One is stated to draw the key issues. Further analysis of Hydro One’s problems and risk management program are provided. In addition, several frameworks that may improve Hydro One’s current condition are well represented, including principles, implementing processes, comparison, and suggestions with a paradigm. Proper recommendation to Hydro One’s long-term strategy and short-term actions are listed behind frameworks. In the end, a mind work in regard to this case is provided.
Contents
Executive Summary 1
1.0 Introduction 3
2.0 Key Issues of Hydro One 3
3.0 Analysis of Risk Management at Hydro One 4
4.0 Frameworks 5
4.1 Balance Scorecard 5
4.2 Corporate Social Responsibility (CSR) 7
5.0 Recommendations 9
References 10
Appendix 10
1.0 Introduction
Crisis of Hydro One had begun when the electricity power industry was restructured. Under the intervention of government, Hydro One took downsizing action to reduce the cost and increase the efficiency. This resulted in a rather long worker strikes, no injection of freshness, and more frustratingly, employees were disappointed with the company. Focusing only on the financial measurements without considering ways to improve the power transmission capacity led to the decline of bargaining power. Besides, Previous CEOs’ inappropriate decision-making and their layoffs adversely impact on the reputation of Hydro One (Enterprise Risk Management at Hydro One (A), 2012).
The previous leadership of Hydro One could see the benefit of improving the credit rating, but failed to own a long-term strategic vision. Indeed, downsizing actions brought Hydro One cost reduction and a better credit rating. However, these tangible benefits were gained based on the sacrifice of invisible, cumulative, and
Executive Summary
This paper aims to assess the case of Hydro One implementing risk management program to meet the needs of restructuring industry and the market. The overall situation of Hydro One is stated to draw the key issues. Further analysis of Hydro One’s problems and risk management program are provided. In addition, several frameworks that may improve Hydro One’s current condition are well represented, including principles, implementing processes, comparison, and suggestions with a paradigm. Proper recommendation to Hydro One’s long-term strategy and short-term actions are listed behind frameworks. In the end, a mind work in regard to this case is provided.
Contents
Executive Summary 1
1.0 Introduction 3
2.0 Key Issues of Hydro One 3
3.0 Analysis of Risk Management at Hydro One 4
4.0 Frameworks 5
4.1 Balance Scorecard 5
4.2 Corporate Social Responsibility (CSR) 7
5.0 Recommendations 9
References 10
Appendix 10
1.0 Introduction
Crisis of Hydro One had begun when the electricity power industry was restructured. Under the intervention of government, Hydro One took downsizing action to reduce the cost and increase the efficiency. This resulted in a rather long worker strikes, no injection of freshness, and more frustratingly, employees were disappointed with the company. Focusing only on the financial measurements without considering ways to improve the power transmission capacity led to the decline of bargaining power. Besides, Previous CEOs’ inappropriate decision-making and their layoffs adversely impact on the reputation of Hydro One (Enterprise Risk Management at Hydro One (A), 2012).
The previous leadership of Hydro One could see the benefit of improving the credit rating, but failed to own a long-term strategic vision. Indeed, downsizing actions brought Hydro One cost reduction and a better credit rating. However, these tangible benefits were gained based on the sacrifice of invisible, cumulative, and
References: Beth Kytle, J. G. (2005). Corporate Social Responsibilty as Risk Management. A Model for Mutlinationals. BPS Resolver Inc. (n.d.). White Paper: Integration of Balanced Scorecards with Enterprise Risk Management. Retrieved from CLCI Solutions: www.theclci.com/pdfs/bsc-ermwhitepaper.pdf De Kluyver, C. A., & Pearce II, J. A. (2010). Strategy: A View From the Top. New Jersey: Prentice Hall. Enterprise Risk Management at Hydro One (A), 9-109-001 (Harvard Business School January 18, 2012). Law, D. (2013, May 2). Accounting and Risk Management. Retrieved from Risk is Beautiful: http://riskisbeautiful.lofter.com/post/1c9a77_5ac747 Manuel Castelo Branco, L. L. (2007). Positioning Stakeholder Theory within the Debate on CSR. EJBO(Electronic Journal of Business Ethics and POrganization Studies, vol 12., pg 5-14. Appendix Mind Work: