Western Power has a comprehensive framework to manage its strategic, operational, regulatory and reporting risks. Western Power’s risk management policy (and related framework) sets out a methodology and process for identification of risks, outlines the accountabilities of management and contains procedures for reporting on risk issues throughout Western Power.
Divisional general managers are responsible for identifying risks and implementing strategies to mitigate them. The Finance & Risk Committee oversees the risk management framework and reviews the effectiveness of key mitigation strategies. Risk reviews are conducted at least annually to ensure that emerging risks, such as those from changes in market structure and design, organisational restructures and operational issues, are identified and responses developed.
The Board receives a quarterly risk report which notifies directors of any issues of concern and requires an annual assurance from management that effective risk management processes in relation to material business risks are in place.
The Board also reviews all major strategies and purchases for their impact on the risks facing Western Power.
In accordance with the Electricity Corporations Act, the Treasury Branch makes recommendations to the Board on the appropriate level of insurance cover for Western Power. Financial risk issues are managed through a treasury policy statement that requires regular reporting to the Finance & Risk Committee on treasury activities.