Published 2007, 51pp
This paper provides an understanding of ERM and assists executives in developing and applying an ERM framework unique to the business of a regulated utility. A utility is defined as an entity that has rates that must be approved by a regulatory authority, be it local, state, regional or federal (including public power entities’ self-regulating governance), and tends to have extensive exposure to operative risks. The intent of this paper is to provide guidance to utilities that are implementing or improving ERM frameworks. Such frameworks are not prescriptive, one-size-fits-all endeavors. Rather, an ERM framework must balance the utility’s risks, business and regulatory structures and current risk management practices and governances.
