erisk supports risk management in the energy industry
Access to current and consistent data from anywhere.
Analyses and reports always on time, without user errors.
TAURON Group is one of the largest business entities in Poland, with equity of over PLN 19 billion and employing over 25,000 people.
TAURON Group supplies over 51 TWh of electricity annually to 5.6 million end clients, which makes it the largest electricity distributor in Poland. It is also the second largest producer and seller in the country and the largest supplier of heat in Upper Silesia. The holding controls approx. 29 percent of Polish hard coal resources.
TAURON Group is involved in a number of projects for the benefit of the environment, such as educational and charity activities. It is a sponsor of important cultural and sports events.
The project included computerization of the risk management area in TAURON Capital Group. Our task was to provide an appropriate tool and adjust it to the applicable risk management policy. The most important thing here was to standardize, complete and harmonize data (including historical data from eight quarters back) and ensure access to them at any time and from anywhere. For the client, it was very important to be able to compare historical data and risk analysis results as well as report automatically, in order to eliminate delays in the preparation of reports for the management board and the audit committee. The client also wanted to solve several problems, including incomplete or incorrectly completed forms for collecting risk data. Due to the dispersed nature of the company and the high frequency of use of the tool, the client wanted the tool to be used by users with various permissions. All these problems were successfully solved by erisk software.
The project was completed in early 2013. It was divided into several stages, including license delivery, installation of the erisk tool, implementation of methodologies, training for employees, updating and service and technical support.
We have prepared a report with requirements
We started our work by defining the needs of the organization at various levels of management. We made a detailed analysis of them, which was necessary to prepare a report taking into account functional, technical and functional requirements along with recommendations. Thanks to this, we were able to develop the structure of the database, and also propose an optimal variant of the implementation of the methodology used in TAURON for the erisk tool.
We delivered and configured the tool
We have provided the license and installed erisk. The tool consisted of several modules: erisk Manager (for configuration), erisk Portal (for risk assessment) and operational events portal for the system administrator. We implemented the risk management model used in TAURON Capital Group and supplemented historical data.
We adapted and completed the forms
Quite a non-standard solution was to separate the risk assessment from the risk sheet, as well as to separate the form for the risk response plan. This was due to the need to separate the dates and the persons responsible for completing the information on risk assessment parameters (KRI) in the course of assessing information and assessing the likelihood and consequences of risk occurrence on their basis. Thanks to this, the companies gained the opportunity to develop several different plans for one risk sheet, e.g. from the perspective of different companies, location, triggering factor, nature of the solution.
We trained employees
erisk tool is easy to use, but requires knowledge and skills how to use it effectively to reduce the risk of errors in the data provided. Therefore, software users from designated TAURON companies took part in training courses on the practical operation of the software, covering individual functions and modules. We also provided a practical instruction manual.
We updated the software
Almost a year after the tool was handed over, a new version of the software was developed and on this occasion TAURON decided to introduce additional modules and configuration changes, which translated into an even better adjustment of the tool to the current needs. We changed the layout of the database, adding a contextual enhancement feature; we rebuilt the forms, added new modules, e.g. Surveys and reports, as well as others that improved the comparison of data and the work of each user.
We provided technical assistance
Both during the project and after its completion, the client could count on our support as part of technical assistance. Our consultants were available at all times, solved current problems and provided necessary updates.
Risk Management in accordance with COSO II
What did the client gain?
- Automation of the risk management system and limiting risk data storage to one place.
- Increasing the timeliness of submitting summary reports and information on risks from all locations in the entire TAURON Capital Group.
- Reducing the probability of submitting incorrect data thanks to unified and non-modifiable forms.
- Access to always up-to-date and consistent data at any time and in any composition, thanks to cyclical reports, which is a significant support for the decision-making process.
- The possibility of linking the forms with the results of conducted surveys, which facilitates the acquisition, verification and analysis of data.