An untimely adopter of Enterprise Risk Management, energy giant Hydro One projected new dangers and opportunities in an industry that faced carbon laws and climate change, the deregulation of electricity markets, and the greater adoption of renewable technologies. CEO Laura Formusa believed the risk profile of Hydro One had changed, to the extent that she had to ask herself -- was the strategy tenable? The case provides a rich description of Enterprise Risk Management in action, and shows how Hydro One executives arrive at a common understanding of the hazard profile of the company.
In the narrative a varied group of supervisors (the chief executive, the chief financial officer, the head of the public relations and the chief regulatory official) express their views on the hazards, together bringing a multiple stakeholder view to the hazard profile. The case challenges students to define the problems and hazards the company faces, given the changing environment, and its strategic objectives, its risk profile that is evolving. The case also offer a debate ground for defining the function of the chief risk officer, and the relationship between capital budgeting, strategic planning and risk management.
PUBLICATION DATE: July 03, 2008 PRODUCT #: 113C03-HCB-CHI
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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