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Through strategic risk management, ICF International provides another tool for the continuum of planning to execution. Better decisions are based on a solid view to both paper and physical positions through improved risk analytics and improved control effectiveness. Value can be measured through improved inventory management capabilities, improved control effectiveness, and increased scalability of processes and tools.
Our strategic approach uses benchmarking techniques to determine competitive advantages and identifies areas for improvement. Understanding risk is critical in order to manage total company position, improve accuracy of transaction data, ensure automated controls and accountability, integrate work process, and assess and contain risk.
ICF International's multidisciplinary teams of seasoned professionals include engineers, economists, scientists, and policy analysts from industry and government. Thirty years of experience and commitment to our proprietary models enable ICF to help clients evaluate the complex dynamics of energy markets and the impact of risk in the energy industry.
Our solution assets include:
- Strategy review and development
- Assessment and benchmarking
- Process improvement and organizational realignment
- Key performance indicators (KPIs) for benchmarking
- Origination to settlement process designs
- Software application comparison tool
- Technology solution implementation
Our Approach
Our approach to risk management features four components:
1) risk assessment
In the first phase, we develop a common set of definitions; interview key executives; assess location, frequency, and magnitude of top risks; and facilitate a risk workshop.
2) risk quantification
In the second phase, we identify date/model needs and methods to measure aggregate risk profile; categorize risk drivers by business unit, portfolio, or subsidiary; quantify and prioritize top risks and their respective financial impacts; and identify risk mitigation strategies.
3) risk realignment
The third phase includes the development of management’s vision for risk management, crafting of the risk management governance structure, and developing risk reporting structure.
4) risk mitigation
The final phase includes development of the risk management communication plan; embedding risk management into the organization; and continuously reviewing, monitoring, and improving risk management infrastructure.
Within each component a variety of risks are considered, including:
- Compliance—Contractual, regulatory, service level agreements
- Financial—Lost or deferred revenue, opportunity, shareholder equity
- Operational—People, production, supply chain
- Strategic—Market share, partnerships, reputational
- Technical—Cybercrime, e-business, infrastructure failure
Featured Solutions
ICF's team experience includes work with some of the largest utilities in the United States, including Allegheny Energy, American Electric Power, Duke Energy, and Florida Power & Light. This work covers a wide range of assignments, including support for the construction of new generation in Florida, the development of new transmission in the PJM region, analysis of market fuel costs in North Carolina, the development of a hedging strategy in Oklahoma, and risk assessment in Texas.
This work generally includes both market analysis and testimony in regulatory proceedings and is often carried out in conjunction within an assessment of the appropriate mix of resources. These types of firms rely regularly on ICF’s credibility for reliable energy market projections and integrated resource planning (IRP) support.
Past experience includes:
- TXU Energy—conducted a quick assessment of the corporate Business Continuity obligations and the existing capabilities and support available to establish a clear set of gaps that needed to be addressed in a subsidiary’s BC Plan.
- Progress Energy—developed a process to enhance the company's management of enterprise risk for both regulated and unregulated operations, including a streamlined risk reporting framework for enterprise wide risk measurement, monitoring, and reporting, and a review of its fuel hedging policies and associated risks.
- FPL Group—optimized fuel oil reserves to free up millions of dollars of capital, identified client’s fuel inventory levels, and prepared a fuel inventory plan for company assets that use #6 fuel inventory as a primary fuel.
In addition, ICF has assisted Yahoo! in its program to achieve carbon neutrality for the company’s worldwide operations. ICF began by completing a comprehensive greenhouse gas inventory for the company, including electricity and fuel use associated with Yahoo!’s office buildings and datacenters, as well as business travel and employee commuting. ICF then helped Yahoo! identify opportunities to reduce its carbon footprint, through a benchmarking study of Yahoo!’s core facilities, allowing Yahoo! to consider facility energy efficiency options, and on-site renewable generation, including solar services.
Finally, ICF is assisting Yahoo! with its entry into the carbon offset market, soliciting, reviewing, and performing due diligence on carbon offset project proposals to ensure that Yahoo! completes its carbon neutrality strategy through the purchase of high-quality, verifiable, "additional" carbon offsets that effectively communicate Yahoo!’s goals of global community empowerment. ICF is currently performing similar carbon strategy work for Google, eBay, News Corp., HSBC and a number of similarly high-profile U.S. and international companies.
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