Enterprise Risk Management Essay

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Consider the three stages of Hydro One’s enterprise risk management (ERM) process: Workshops; Risk-based Investment Planning; The Regular Update of the Corporate Risk Profile. What are the strengths and weaknesses of this ERM process? Answer: Risk Workshop Strengths: It provides a platform for get managers involved in collecting the potential risks to the business. The proposed risks come from executives of all functions (finance, marketing, etc.), it will make employees fell more ownership of company daily operation. The way of conducting workshop and Delphi method in voting makes the process transparent and efficient. Different options are brought out for discussion publicly and come to consensus in the end. Each risk profile has focal person who will push the action process and monitor the feedback. As the risk proposed from front-end manager and it’s them who will finally conduct mitigated solutions, it’s easier for them to understand the purpose of action and how to do that.. Weakness: The workshop is quite time consuming and may affect routine operation. The case doesn’t provide the information such as if all the managers require to propose risk items from their point of view, how to select managers for each workshop. But “60 different assessment workshop” means more than one time per week frequency, not talking about the preparation and interviews may happen beforehand. There may be some drawbacks on way of selecting “generic list”. Because it’s the most critical topics selected by managers who attend the meeting, some risks that are not commonly understood or related to other division may never have changes to be discussed, but it doesn’t mean it’s not important. The Risk Profile Review Strengths: It reflects the dynamic situation of risk management. The risk will change along with time going when external and internal environment changes.

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