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While many MCR clients articulate
a back-to-basics, low-risk profile message, expectations to grow earnings will
require management to consider strategies that may expose the company to more
financial risk. Rather than apply qualitative descriptions of risks and decide
strategies based on gut feel, MCR has pioneered an overall framework to measure
volatility and risk inherent in the current strategy and strategic alternatives.
MCR's Enterprise Risk Management framework is based on helping our clients
achieve four key objectives:
- Develop capabilities to quantify the inherent variability of the forecast
and measure the impact on key financial metrics
- Quantify the tradeoffs of alternative strategies from a risk perspective
and test these strategies under alternative "states of the world"
- Articulate key corporate measures for risk and utilize these measures as
part of the strategic planning process
- Communicate the risk profile of your company to stakeholder groups: employees,
shareholders, ratings agencies, regulators, etc.
Working with MCR, management will gain new insight by looking
at business strategy from a risk point of view, enabling better decisions while
ensuring consistency with the overall risk tolerance of its key stakeholders.
MCR has assisted the development of Enterprise Risk Management capabilities
across many types of clients:
- Corporate Parents of Investor Owned Utilities
- Utility Operating Companies
- Generation & Transmission Cooperatives
- Municipal Power Companies
- Retail Energy Marketing Subsidiaries
MCR brings a wealth of experience working with client teams to identify and
quantify risk drivers, implement tools to analyze key risks and develop powerful
communications reflecting the results for key stakeholder groups. We will help
you achieve results.
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