Risk management

We are focused on five key priorities to deliver our strategy and we align performance and risk management processes around these, including our Key Performance Indicators.

Our Group Priorities

Safety Customers Financials People Efficiency

Safety, compliance and conduct

Customer satisfaction and operational excellence

Cash flow growth and strategic momentum

People and building capability

Cost efficiency and simplification

“We can’t predict the future but we can empower better business performance by having the credibility, courage and confidence to raise the issues that really matter.”

Carolyn Clarke, Group Head of Internal Audit, Risk and Control

Decentralisation of energy systems, shifting power to the consumer and increasing digitalisation presents both opportunities and risks. Identifying and appropriately managing these risks
is critical to the successful delivery of our strategy.

Within our System of Risk Management and Internal Control we assess risk in relation to the delivery of Group Priorities and determine the level of risk we are prepared to take:

  • safety, compliance and conduct: Our appetite for taking risk in this area is as low as reasonably practicable in relation to: ensuring the safety of our people, customers and communities;
    conducting our business operations in compliance with laws and regulations; protecting personal and business data about our customers and employees; and managing our financial reporting risks;
  • customer satisfaction and operational excellence: We have a moderate risk appetite to allow us to pursue innovative opportunities. We are driven to satisfy the changing needs of our customers;
  • cash flow growth and strategic momentum: We have a moderate to high risk appetite for seeking opportunities to deliver cash flow growth and our target return on capital; cost efficiency and simplification: We have a low to moderate risk appetite for failing to implement and manage improvements sustainably and in a rigorous and systematic way; and
  • people and building capability: We accept a moderate level of risk in finding ways to attract, develop and reward people with the diverse capabilities needed to deliver our ambitions.
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