Developing a decision support enabled enterprise risk control framework for energy companies in India

Abstract

There is no assurance that an organiation will achieve their business goals as various factors which may be internal or external determines the success. Most of the time enterprise risk management is seen as compliance requirement. The root cause analysis reports of some the recent disasters in energy industry also point towards this by stating that risk control failure is one of the primary reason. It means companies energy companies spend significant time on developing risk registers and governance framework but lack a robust day to day monitoring and integrated reporting & alerts framework. The ultimate objective of any risk control framework is to eliminate or reducethe likelihood of a triggering event, avoid black swans and monitor key risk indices in real time to avoid surprises. This paper looks at the energy companies operating in India for some of the key reasons for not having an enterprise wide risk control & monitoring framework and provides a methodology on how it can be developed.