Endeavour Energy Annual Performance Report - Parliament of New ...

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Our
Performance
StRAtegic Objectives
STRATEGIC OBJECTIVE 5 – MANAGE BUSINESS RISK
2010–11 Objective 2010–11 Target 2010–11 Result
• Strengthen our controls
against the risk of
bushfires.
• By October 2010.
• Action plan developed to address areas in which the
findings of the Victorian Bushfire Royal Commission
could help strengthen our existing controls.
Risk management
In 2010–11, Endeavour Energy
continued to implement the
risk management framework
that enables us to identify and
manage risks that could affect our
customers, the community, the
environment, our people, assets
and financial resources.
Throughout 2010–11, we reviewed
the major risks to achieving our
strategic objectives and developed
and implemented action plans to
help mitigate those risks.
Our management of business risk
is based on three key behaviours:
• We are aware of our activities,
operations and objectives.
• We consider what can go wrong
and the consequences.
• We take action to prevent what
can go wrong.
Our current risk management
strategy spans the three-year
period from 2010 to 2013. Our risk
management process is now based
on Australian Standard AS/NZS
ISO31,000:2009 – Risk Management.
The implementation of the risk management framework, as part of our
corporate plan, is reported in our risk management plan. Risks to our
corporate plan are continually identified and assessed across eight
categories, as shown in this table:
Business risk category
Safety
Network
Financial
Compliance
Reputation
Environment
Retail
Business strategy
Risk description
Fatality/serious injury of employee
or member of public
Significant customer service supply failure
Significant unbudgeted loss of value
Material breach of legislation or licence
Sustained public criticism
Significant environmental incident
Significant loss of value
Strategic objectives not delivered
and business opportunities lost
Note: Retail was removed from the risk management plan following the sale of our retail business
in March 2011.
Both the risk management strategy
and risk management plan are
reviewed by the Audit and Business
Risk Board Committee throughout
the year. ‘Risk owners’ provide
regular reports to management and
to the Audit and Business Risk Board
Committee on the results of ongoing
monitoring and review of risks, and
on action plans to manage and
mitigate them. This has contributed
to the maturing of a culture of risk
management in the organisation.
Incident management
and business continuity
Endeavour Energy is committed to
maintaining continuity of supply and
business systems during network
and other events. An important
function of our incident management
plan therefore is to enable us to
mobilise resources, communicate
with stakeholders and quickly
recover key business processes.
Our incident management plan
provides a framework to guide
the organisation through major
disruptive events. Last year we
embarked on a significant program
to update and enhance the plan
to ensure we are prepared for any
type of incident.
Our business continuity and
disaster recovery plans for all critical
processes and systems are regularly
reviewed and tested.
THE YEAR AHEAD
2011–12 Objective 2011–12 Target 2011–12 Reason
• Strengthen causal controls
to mitigate network
bushfire risk.
• Manage risk in
transitioning the retail
business to Origin Energy.
• Implement new competency
standards and roll out required
training by June 2012.
• Implement agreed plan by June 2012.
• Bushfires are a major threat to
our network and the communities
we serve.
• To ensure a smooth transition and
minimal disruption to customers.
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