Enterprise Risk Management: Value in the Electricity Industry

Electricity sector companies face many risk exposures with the potential for adverse effects arising from both internal events to the organization, as well as socio-economic, regional, provincial, global, or inter-jurisdictional events.

Enterprise Risk Management is a growing field that allows decision makers to make informed choices that balance risk and reward. Risks can never be fully mitigated, but they can be understood and planned for. It is the role of an ERM strategy or framework to understand risks and communicate the nature and impacts of those risks to decision makers. In the process of identifying risks, ERM can also help decision makers understand the potential rewards gained by greater risk tolerance and risk mitigation strategies.

The Enterprise Risk Management (ERM) Committee of the Finance, Tax and Accounting program have identified a need to promote the value ERM delivers to an organization. This document of risk principles, trends, and tools aims to help increase awareness of the value ERM delivers when properly supported.