NERC approach to risk management
As part of its governance responsibilities, the NERC Executive Board (NEB) is required to undertake an annual review of the risks to which NERC is exposed. To help discharge this responsibility, NEB has approved a Risk Management Policy and Risk Management Strategy; agreed to the creation of a Risk Management Network; and to the appointment of a Risk Management Co-ordinator.
Overall responsibility for risk management in NERC lies with the Chief Executive, who as the NERC Accounting Officer signs the annual Statement of Internal Control as part of the audited Annual Accounts. Currently the Chief Executive delegates the task of implementing and maintaining the risk management policy and strategy to the Director Finance & Operations who fulfils the role of Director Responsible for Risk. The Director Responsible for Risk's responsibilities include chairing the Risk Management Network and reporting on risk management to the NERC Executive Board. NERC Directors have a responsibility to ensure the effective application of NERC's risk management strategy and policy. These arrangements ensure risk management is an integral part of the NERC's management style and is tied to core activities and Operating Plan targets and milestones.
NEB is the owner of the NERC Risk Management Strategy and is responsible for reporting issues relating to risks and their management to Council, and for receiving assurance from NERC staff that risks are managed appropriately and passing this assurance to Council.
NEB encourages sound properly managed risk taking and recognises that effective risk management, rather than risk avoidance, is an essential ingredient for successful business operations.