Deloitte - Key Risk Indicators
Deloitte - Key Risk Indicators
Presented by:
Mr Peter Matruglio
Partner Risk Advisory Services, Deloitte
Mr Brad Tymmons
Enterprise Risk and Insurance Manager, EnergyAustralia
Monday 1st September 2014
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XX August 2014
Identify Risk
Establish KRI
What resources & capabilities do we need
to manage risks to acceptable levels as we
implement our strategy?
How can we monitor emerging risks which
can adversely impact on our strategy? i.e.
What risk sensing capabilities do we
need
Agility to respond to material risk events if
they occur
What Are
Our Goals and
Aspirations?
Where
to Play?
How to Win?
Required
Capabilities?
Configuration of
Processes and
Systems?
Disruptors are trends and forces that will likely impact and even
transform an industry by opening up new and different value
opportunities as well as additional areas of risk
Disruptors include the following trends and forces, which impact ways in
which all industries and companies strategise and perform:
Technological
Demographic
Regulatory
Economic
Geopolitical
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Source:
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Source:
ASX Corporate Governance Council Principle 7 Recognise
and Manage Risk, 3rd edition, Group of 100, Deloitte, 2014
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Level 2
Level 3
Commercial
Operations
Capacity
Planning
Contract
Network
Flex
Liabilities
and
Indemnities
Port
Crewing
Disputes
and
Variations
Supply Chain
Mine
Capacity
Deployment
Service
Disruption
Events
Input Costs
Rollingstock
Force
Majeure
Product
Crewing
Market
Significant
Change in
Rollingstock
Circumstanc
e
Enterprise
Finance
Human
Resources
Insurance
Carbon
Payment
Employee /
Industrial
Relations
Coverage
Capability
and
Resourcing
Treasury
Business
Sustainability
Safety and
Health
Other
Regulation,
taxes and
levies
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Premiums
Network
Supply Chain
Network
maintenance
(planned and
unplanned
Weather events
(non-FM)
Infrastructure failure
It should be noted some lagged indicators can be used to derive predictive/leading indicators
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Sources of risk
No Appetite
Wilful breaches or breaches
of laws or regulations such
as the Privacy Act and CCA
Regulatory - Consumer
Regulatory - Privacy
Example
Customer re-reports faulty services within 7
days
Capacity
15%
Low Appetite
for lack of growth
Strategic Product
Strategic Growth
Financial Shareholder
Operational Customer
Strategic Product
Strategic Growth
Strategic Pricing
Financial Shareholder
Appetite
Profile
10%
Upper
limit
Upper
trigger
7%
Lower
trigger
No Lower Limit
Lower
limit
Escalation
Risk profile is
System availability %
between the
% transactions online vs. plan
Operational Business
upper trigger and
Customer re-reports faulty
Continuity
limit. Escalation to
Operational Technology services within 7 days
consider
and Networks RIMS CONFIDENTIAL INFORMATION. Do not disclose without express permissioncorrective
action.
of RIMS General
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Using KRIs
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About Deloitte
This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its
member firms, or their related entities (collectively the Deloitte Network) is, by means of this presentation ,
rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your business, you should
consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss
whatsoever sustained by any person who relies on this presentation.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by
guarantee, and its network of member firms, each of which is a legally separate and independent entity.
Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche
Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning
multiple industries. With a globally connected network of member firms in more than 150 countries,
Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need
to address their most complex business challenges. Deloitte's approximately 195,000 professionals are
committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of
Australias leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit,
tax, consulting, and financial advisory services through approximately 6,000 people across the country.
Focused on the creation of value and growth, and known as an employer of choice for innovative human
resources programs, we are dedicated to helping our clients and our people excel. For more information,
please visit our web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
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2014 Deloitte Access Economics Pty Ltd
EnergyAustralia
Growth of EA
Horizontal and Vertical Integration
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Unclassified
EnergyAustralia
Power generation
The largest privately held supplier of generation
output to the National Electricity Market (NEM)
A reliable fuel supply through ownership and
diversification
QLD
QLD Retail
100k
customers
63,000
accounts
SA 150k
customers
Narrabri Coal
Seam Gas
NSW/ACT 1.3m
customers
Hallett
Power
Station
Cathedral
Rocks
Wind farm
Waterloo
Windfarm
VIC
1.2m
customers
Tallawarra Power
Station
(435MW)
Yallourn Power
Station and Coal
Mine
Ecogen
Hedge
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14
Mt Piper &
Wallerawang
Power Station
Vertical Integration
Load
Swing
Hallett
Generation
Capacity
Balanced Capacity
Mass Market Retail
Ecogen
Bought
Contracts
Electricity
National
Electricity
Market
Sold
Contracts
Electricity
I&C/Business
Load
Tallawarra
Business Retail
Balanced Energy
Mt Piper & Wallerawang
Generation
Energy
Pricing, forecasting
& green certificates
Mass Market
Retail Load
Outage planning,
bidding & dispatch
Yallourn
Available for Sale
Operations &
Construction
Sales
Channels to Market
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EnergyINFORMATION.
Markets
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15
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Unclassified
Regulation
Breach
Retail
Market
Competition
Market
Trading
IT Systems
Usage
Counterparty
Credit
Credit
Rating
People &
Processes
Regulation
Change
Coal
Supply
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Unclassified
Management of Risk
Energy Market risk
measures:
Stress Tests
Earnings at Risk
Volumetric Limits
Market
Operational
ERM:
Risk profiling
Distribution modelling
Risk Committee
reporting
KRI monitoring
Credit
Counterparty contractual
agreements :
Wholesale trading
C&I Portfolio
Procurement
Treasury Limits
Contingent Liabilities
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Unclassified
KRI Context
So what are we looking for?
Trends
Data Patterns
Interdependencies
And what is our purpose?
Support executive decision making for the achievement of
our strategic objectives.
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Unclassified
The analysis
Our BUs develop quantitative and qualitative KPIs
Unclassified
CONSEQUENCE [$]
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Unclassified
Indicator
Total Injury Frequency Rate
Q1
l
Q2
l
Q3
l
Q4
l
EA Integration Project
BPO Optimisation
RCAP Status
OPERATIONAL
People, Processes,
Systems
Commentary
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Unclassified
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Unclassified
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Unclassified
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Unclassified
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Unclassified
Thank You