“MCR was really knowledgeable and helpful; they knew the industry as well as cooperative principles, which was helpful because there were differences in how we looked at risk. They brought in the broader, business knowledge.
We update the risk dictionary every year and we still utilize the portfolio matrix from the risk dictionary at every risk oversight committee meeting. It wasn’t just a project that got put on the shelf; it was a process we took ownership of; I think that’s the best kind of engagement you can have.”
—Kari Wetter, Risk Control Officer
Wabash Valley Power Association (WVPA) provides wholesale power to local distribution cooperatives in a four-state area. The company, known for staying at the forefront of innovation in the power industry, wanted to take a more integrated approach to risk management. WVPA’s senior management team had worked with MCR in the past and asked MCR, in combination with ACES Power Marketing, to assist in implementing an Enterprise Risk Management (ERM) program.
Our team conducted an assessment of WVPA’s current risk environment and reviewed the processes and policies in place to identify and manage the risks. MCR worked closely with WVPA staff to review all aspects of risk, including the key areas of Financial, Safety, Regulatory, and Operational and Market Risks. Concurrently, the MCR team reviewed processes in place to assess, manage and report on risks, coupled with a detailed review of policies related to risk management.
The result of the project was a comprehensive risk list and recommendations for policy and process improvements that provided the basis for a more integrated approach to risk management. WVPA implemented the recommendations, which created a comprehensive ERM program. The ERM program has become an important management tool that enables WVPA to understand and manage risk and improve its ability to provide stable, predictable rates to its cooperative members.