Ervia Risk Management. Elaine O Donoghue IPA Governance Forum Briefing 10 th November 2017

Transcription

1 Ervia Risk Management Elaine O Donoghue IPA Governance Forum Briefing 10 th November 2017

2 Ervia Overview - Our Structure Our customer facing businesses, Gas Networks Ireland and Irish Water, are supported by three functions: Major Projects, Shared Services and Group Centre. These functions provide expertise, support and transactional services on behalf of the entire organisation.

3 Our Purpose We enhance the health and quality of life of the people of Ireland, protect our environment and enable economic development, by delivering high quality water and gas infrastructure and services safely and efficiently We deliver We provide We supply Vital infrastructure and services to 1.7 million customers across the length and breadth of Ireland. Safe energy to warm homes and power businesses. Treated water for cooking, cleaning and drinking. We remove wastewater to keep our environment safe for everyone.

4 Source: Ervia Annual Report 2016 Our Numbers 1.7m Customers 1,645 Employees across 20 locations 9th largest company in Ireland by EBITDA 1.4bn Revenue 584m Capital Expenditure 135m Dividends Paid 203m Profit before Tax 13,700km gas network 63,000km water network 25,000km wastewater network 900 water treatment plants 1,100 wastewater treatment plants

5 Ervia Video 5

6 To Deliver on our Purpose We must Manage a Diverse Risk Profile Health & Safety Capital Intensive Policy & Regulation Critical Infrastructure Growth & Innovation Funding & Liquidity Stakeholders & Our People Environmental

7 Integrated Assurance Framework Board Reporting Key Risks Audit and Risk Committee Internal Audit Control Testing Processes Integrated Assurance Forum Business Unit Forums Chaired by Group Finance Director and Chief Legal Officer Controls Assurance Reports signed off by Heads of Function and BU Managing Director/Executive 7

8 Ervia Enterprise Risk Management Policy & Framework Principals of Risk Management Roles and Responsibility Risk Process Risk Appetite ERM Policy Annual Policy review Alignment to required Codes & Regulations

9 Bottom Up Top Down Ervia Risk Management Governance Framework Ervia Board Committee Board Audit & Risk Committee Risk Management at all levels of the organisation Group Internal Audit Group Risk Management Committee (RMC) Risks Roll-up Irish Water RMC Gas Networks Ireland RMC Shared Service Centre RMC Major Projects RMC Group Centre (HQ) RMC Functional Subcommittees Functional Subcommittees Functional Sub- Committees Functional Sub- Committees Functional Sub- Committees Risk Champions Risk Owners, Control Owners, Process Owners 9

10 Examples: Key Risks, HILPs and Emerging Risks Key Risks IW Funding and Liquidity Recovery of IW Brand Failure to deliver the most Critical Major Projects or deliver on our Transformation Programmes HILP Risks Major Safety Incident Major Outage or Trunkmain Failure leading to critical water restrictions Extreme Weather Event impacting supply of services (GNI/IW) Emerging /Trending General Data Protection Regulations Climate Change Brexit

11 Staleen Water Treatment Plant Outage 11

12 Storm Ophelia 12

13 Risk Appetite Ervia as a regulated semi-state commercial body would be viewed overall as Low Risk Taking from a utility perspective Within this the Board, annually, set the risk appetites for key risk areas aligned to our strategic objectives Indicative Examples: Strategy Pillar Risk Area Trust & Respect Smart & Efficient Successful Enduring Business Model Reputation & Stakeholder Innovation & Growth Finance 13

14 Conclusion Ervia operates an organisational wide approach to Risk Management which follows leading practice and aligns to the Code of Practice We are continuously embedding our risk culture - enabling the right risks to be taken in an informed manner An articulated Risk Appetite allows us to link key discussions on strategy and performance to the amount of risk we want to take Risk Management enables us to identify and take more opportunities Key enablers are a clear organisational purpose, lived values and a strong tone from the top The Ervia Values Collaboration Integrity Safety Performance Customer Service 14

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