US electricity and water utility implements enterprise risk management program

Client need

An electricity, power, and water utility for residents of a large island in the Pacific Ocean needed internal audit services, a management audit, and review of internal controls. The organization wanted to prioritize risk mitigation strategies and action items based on a comprehensive risk analysis.

Baker Tilly solution

Baker Tilly provided a wide range of reviews and services to the utility, including grant reporting under ARRA requirements, enterprise risk management program establishment governance models, business process reviews of operational cycles, metrics and strategic plan development, and a fuel hedging program controls review. Most recently, we executed a holistic analysis of key risks and are working to implement an enterprise risk management (ERM) program. This will provide the utility with a consistent methodology to prioritize risk mitigation strategies in the future.

Results

Baker Tilly continues to serve as a Valued Business Advisor for the utility. Our strategic approach consists of ongoing interviews with management, the review of both internal and external documentation, and facilitated workshops covering:

  • ERM educational session
  • Risk universe build out
  • Risk assessment of the universe focusing on impact, likelihood and mitigation effectiveness
  • Identification and prioritization of the highest rated risks to the organization
  • Development of action plan cost-benefit analysis of highest rated risks
  • Linkage of highest rated risks to the strategic plan and business goals
  • Ongoing risk monitoring, dashboards, and internal reports
  • IT capabilities utilized for implementing ongoing risk monitoring
  • ERM charter, policy, organizational plan and governance

For more information on this topic, or to learn how Baker Tilly energy and utility specialists can help, contact our team.