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    Risk Identification and Metigation

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    natib55777

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    Risk Identification and Metigation

    Uploaded by

    natib55777
    3 views3 pages

    Original Title

    Risk identification and Metigation

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    3 views3 pages

    Risk Identification and Metigation

    Uploaded by

    natib55777

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    1.

    Risk identification, the method the company uses to identify risk

    Risk Identification in the Ethiopian electric Power Sector

    Risk identification in the power sector is a systematic process of identifying

    potential risks that could impact Transmission substation operations, Generation

    operations, Transmission substation projects, Generation projects, different

    process and department. It involves recognizing internal and external threats,

    analysing them, and documenting them for further evaluation

    The company use different risk identification techniques and tools

    Risk Identification in corporate risk management office use two methods type of

    risk identify

    1. Overall company risk identify

    - based on risk template format collect potential risk in all process

    2. Select a department or processes

    - Develop a questionnaire to identify risks based on the department or job type

    and to be filled out by relevant professionals, open discussion in manager and

    experts, observation, collect Reviewing past events, incidents, and recurring

    risks identify in company.

    Example of risk identify in EEP.(Ethiopian Electric Power)

    • Operational risks (e.g., equipment failure, supply chain issues).

    • Financial risks (e.g., budget overruns, funding shortages).

    • Environmental risks (e.g., droughts affecting hydroelectric plants).

    • Regulatory and political risks (e.g., policy changes or delays in approvals).

    • Cybersecurity risks (e.g., threats to grid infrastructure).


    2. Methods the company uses to handle risk

    General Methods Companies Use to Handle Risks

    When addressing risks, companies, including organizations like Ethiopian Electric

    Power (EEP), employ a combination of strategies tailored to their unique

    operational challenges.

    Here are common risk-handling methods that EEP use:

    1. Risk Avoidance

    - Description: Taking proactive steps to avoid activities or situations that could

    lead to risks.

    - Deciding against pursuing projects in high-risk areas or conditions.

    - Avoiding dependence on a single energy source (e.g., hydropower) to minimize

    vulnerability to drought.

    Example: Expanding into wind and solar energy to reduce reliance on

    hydropower.

    2. Risk Mitigation

    - Description: Implementing measures to reduce the impact or likelihood of risks.

    - We will further implement this risk mitigation strategy within the company. We

    will monitor departments to ensure that they use the risk reduction plan to

    reduce the risk to a minimum based on the mitigation plan we have set for each

    high risk.

    Example: Preventive maintenance of turbines in hydropower plants.

    3. Risk Transfer

    - Description: Shifting the financial burden or consequences of risks to third

    parties.
    - Purchasing insurance for assets like power plants and transmission lines.

    Example: Collaborating with international financial institutions like the African

    Development Bank for funding.

    4. Risk Acceptance

    - Description: Acknowledging certain risks that cannot be avoided or mitigated

    and planning for their impacts.

    - Setting aside contingency budgets for potential project delays.

    5. Risk Monitor

    One way to manage risk is to monitor the risks identified as high risk throughout the

    company's overall process and ensure that mitigation plans are in place and

    implemented according to the plan, and that the risk has been reduced.

    Final using a mix of mitigation, transfer, acceptance, and risk transfer, companies

    like EEP address risks effectively, ensuring operational stability and resilience.

    These methods are integral to maintaining reliable energy supply while managing

    the challenges of a complex power sector.

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