Risk Appetites: How Hungry Are Utility Investors?
An effective risk-management strategy depends on knowing your shareholder’s idea of value.
How do shareholder relations link to risk-management policy? The answer: Utilities have to communicate to shareholders a particular set of operating strategies that will attain certain financial results. Risky activities both enhance and threaten those financial results. Therefore, policies must define how risky strategies are formulated, approved, controlled, and measured.