Edited By Abdulkadir Develi and Selahattin Kaynak
Enterprise Risk Management for the Energy Industry
Bünyamin Topçu and ule Güne 1. Introduction Recent changes in the New York Stock Exchange (NYSE) Corporate Govern- ance Rules now include explicit requirements for NYSE registrant audit commit- tees to assume specific responsibilities with respect to “risk assessment and risk management” including risks that go beyond financial reporting.1 Managers face a variety of new challenges in their day to day business. Globali- zation, e-business, new organizational partnerships, and the increasing speed of business activity are rapidly changing and expanding the risks faced by organizati- ons. Risk management must now go well beyond insuring against hazards and tradi- tional financial worries, in order to prevent a wide variety of risks concerning stra- tegic, operational, reputational, regulatory and information areas. As an emerging management discipline, ERM varies across industries and corporations. The insurance industry, financial institutions and the energy indus- try are among the industries where ERM has seen relatively advanced develop- ment in a wide range of corporations. Many government organizations and pri- vate companies are using targeted risk management approaches. An increasing number have found that there are significant gains to be made by working syste- matically based on a commercially oriented overview of risks and opportunities in the short and long terms. Recently, even the public sector has started becom- ing aware of the potential value of ERM, and risk managers are increasingly bringing it to top executives.2 Therefore, risk management and ERM have be- come “hot” subjects in recent years, and many companies and...
You are not authenticated to view the full text of this chapter or article.
This site requires a subscription or purchase to access the full text of books or journals.
Do you have any questions? Contact us.Or login to access all content.