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  • July 2008 (Revised January 2012)
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Enterprise Risk Management at Hydro One (A)

By: Anette Mikes
  • Format:Print
  • | Pages:22
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Abstract

An early adopter of Enterprise Risk Management, energy giant Hydro One anticipated new threats and opportunities in an industry that faced climate change and carbon legislation, the deregulation of electricity markets, and the greater adoption of renewable technologies. CEO Laura Formusa felt Hydro One's risk profile had shifted, 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 shared understanding of the risk profile of the company. In the narrative a diverse group of managers (the chief executive, the chief financial officer, the head of the public relations and the chief regulatory officer) voice their views on the risks, collectively bringing a multiple stakeholder perspective to the risk profile. The case challenges students to define the problems and risks that the company faces, given its strategic objectives, its evolving risk profile, and the changing environment. The case also offers a discussion ground for defining the role of the chief risk officer and the relationship between risk management, strategic planning and capital budgeting.

Keywords

Capital Budgeting; Knowledge Sharing; Managerial Roles; Risk Management; Strategic Planning; Situation or Environment; Environmental Sustainability; Renewable Energy; Energy Industry

Citation

Mikes, Anette. "Enterprise Risk Management at Hydro One (A)." Harvard Business School Case 109-001, July 2008. (Revised January 2012.)
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More from the Author

    • Winter 2015
    • Journal of Applied Corporate Finance

    When One Size Doesn't Fit All: Evolving Directions in the Research and Practice of Enterprise Risk Management

    By: Anette Mikes and Robert S. Kaplan
    • August 2014
    • Faculty Research

    Enterprise Risk Management at Hydro One (B): How Risky are Smart Meters?

    By: Anette Mikes and Amram Migdal
    • 2014
    • Faculty Research

    Learning from the Kursk Submarine Rescue Failure: the Case for Pluralistic Risk Management

    By: Anette Mikes and Amram Migdal
More from the Author
  • When One Size Doesn't Fit All: Evolving Directions in the Research and Practice of Enterprise Risk Management By: Anette Mikes and Robert S. Kaplan
  • Enterprise Risk Management at Hydro One (B): How Risky are Smart Meters? By: Anette Mikes and Amram Migdal
  • Learning from the Kursk Submarine Rescue Failure: the Case for Pluralistic Risk Management By: Anette Mikes and Amram Migdal
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