IDEAS home Printed from https://ideas.repec.org/a/bla/jacrfn/v17y2005i3p62-75.html
   My bibliography  Save this article

The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One

Author

Listed:
  • Tom Aabo
  • John R. S. Fraser
  • Betty J. Simkins

Abstract

This article describes the five‐year implementation of enterprise risk management at Hydro One, a Canadian electric utility in a newly deregulated market. Starting with the creation of the position of Chief Risk Officer and the implementation of a pilot risk study involving one of the firm's subsidiaries, the ERM process has made use of a variety of tools and techniques, including the “Delphi Method,” risk trends, risk tolerances, and risk rankings. Among the most tangible benefits of ERM at Hydro One are (1) a better coordinated and more effective process for allocating capital and (2) a favorable reaction to the program by Moody's and Standard & Poor's, which has arguably improved the company's credit rating and lowered its cost of capital. But perhaps equally important is the company's progress in realizing the first principle of its ERM policy—namely, that “risk management is everyone's responsibility, from the Board of Directors to individual employees.” As a result, Hydro One's management feels that the company is much better positioned today to respond to new business developments than it was five years ago.

Suggested Citation

  • Tom Aabo & John R. S. Fraser & Betty J. Simkins, 2005. "The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One," Journal of Applied Corporate Finance, Morgan Stanley, vol. 17(3), pages 62-75, June.
    • Handle: RePEc:bla:jacrfn:v:17:y:2005:i:3:p:62-75
    DOI: 10.1111/j.1745-6622.2005.00045.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1745-6622.2005.00045.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1745-6622.2005.00045.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madhu Acharyya & Chris Brady, 2014. "Designing an Enterprise Risk Management Curriculum for Business Studies: Insights From a Pilot Program," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(1), pages 113-136, March.
    2. Farrell, Mark & Gallagher, Ronan, 2019. "Moderating influences on the ERM maturity-performance relationship," Research in International Business and Finance, Elsevier, vol. 47(C), pages 616-628.
    3. Michael Maingot & Tony Quon & Daniel Zéghal, 2018. "Risk management by US and Canadian financial firms during the financial crisis," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(4), pages 221-234, November.
    4. Håkan Jankensgård & Alf Alviniussen & Lars Oxelheim, 2016. "Why FX Risk Management Is Broken–and What Boards Need to Know to Fix It," Journal of Applied Corporate Finance, Morgan Stanley, vol. 28(1), pages 46-61, March.
    5. Fraser, John R.S. & Simkins, Betty J., 2016. "The challenges of and solutions for implementing enterprise risk management," Business Horizons, Elsevier, vol. 59(6), pages 689-698.
    6. Therese R. Viscelli & Mark S. Beasley & Dana R. Hermanson, 2016. "Research Insights About Risk Governance," SAGE Open, , vol. 6(4), pages 21582440166, November.
    7. Arena, Marika & Arnaboldi, Michela & Azzone, Giovanni, 2010. "The organizational dynamics of Enterprise Risk Management," Accounting, Organizations and Society, Elsevier, vol. 35(7), pages 659-675, October.
    8. Marshall, Alasdair & Ojiako, Udechukwu & Wang, Victoria & Lin, Fenfang & Chipulu, Maxwell, 2019. "Forecasting unknown-unknowns by boosting the risk radar within the risk intelligent organisation," International Journal of Forecasting, Elsevier, vol. 35(2), pages 644-658.
    9. Lu Xing & Tinghua Duan & Wenxuan Hou, 2019. "Do Board Secretaries Influence Management Earnings Forecasts?," Journal of Business Ethics, Springer, vol. 154(2), pages 537-574, January.
    10. Braumann, Evelyn C. & Grabner, Isabella & Posch, Arthur, 2020. "Tone from the top in risk management: A complementarity perspective on how control systems influence risk awareness," Accounting, Organizations and Society, Elsevier, vol. 84(C).
    11. Vasilisa Makarova, 2015. "Estimation Of Risk Management Efficiency From The Perspective Of The Stakeholders," European Journal of Business and Economics, Central Bohemia University, vol. 10(2), pages 6941:10-694, January.
    12. Ai Ping Teoh & Kaih Yeang Lee & Rajendran Muthuveloo, 2017. "The Impact of Enterprise Risk Management, Strategic Agility, and Quality of Internal Audit Function on Firm Performance," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 222-229.
    13. Eckles, David L. & Hoyt, Robert E. & Miller, Steve M., 2014. "Reprint of: The impact of enterprise risk management on the marginal cost of reducing risk: Evidence from the insurance industry," Journal of Banking & Finance, Elsevier, vol. 49(C), pages 409-423.
    14. Eckles, David L. & Hoyt, Robert E. & Miller, Steve M., 2014. "The impact of enterprise risk management on the marginal cost of reducing risk: Evidence from the insurance industry," Journal of Banking & Finance, Elsevier, vol. 43(C), pages 247-261.
    15. Alessandra Allini & Raffaela Casciello & Marco Maffei & Martina Prisco, 2022. "The national culture as a determinant of ERM quality: Empirical evidence in the European banking context," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(1), pages 79-102.
    16. John Fraser & Rob Quail & Betty Simkins, 2021. "The History of Enterprise Risk Management at Hydro One Inc," JRFM, MDPI, vol. 14(8), pages 1-13, August.
    17. Mónica Hernández-Madrigal & Cristina Aibar-Guzmán & Beatriz Aibar-Guzmán & Élfego Ramírez-Flores, 2020. "Are external pressures always behind ERM implementation? Evidence from Spanish listed firms," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 86-100, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jacrfn:v:17:y:2005:i:3:p:62-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1078-1196 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.