Critically analyse the role of the board of directors and senior Essay

Critically analyse the role of the board of directors and senior management in managing enterprise risk in an energy company - Essay Example Energy and Resources companies have come increasingly under the regulatory purview. Due to brisk changes in the industry, they face stiffening regulatory requirements, ever-increasing cyber issues and rapidly changing technology. Such compliances and risks have a strong impact on the company’s operations and business strategies that makes it utterly imperative for the management to adopt approaches to manage and mitigate risks and cope up with regulations. Risk Management in the Energy Sector A good progress has been made in the past in developing comprehensive enterprise risk management (ERM) programs. ERM is set to become an industry standard for management of risk because it is probably the most effective way to manage risk internal or external to the organization (Accenture Global Risk Management, 2011). The key risk areas that have been identified for energy and resources sector can be listed as follows: 1. High competition in the industry participants: Energy industry pa rticipants have a very unique competitiveness. Each player has a different advantage within the industry. One firm may have a good resource support while the other might be a technologically strong firm and a third would have a huge market. Nowadays, competition is shifting and each firm is trying to develop on every frontier. International firms are thus facing challenges by national players reducing their market size. 2. Limited sources of alternative energy: Despite the fact that there are alternatives to limited source of non renewable energy, energy companies still haven’t been able to progress much on developing much on alternative sources. Alternate sources have an irreplaceable demand, but on the supply side, they face a lot of constraints. There hydrocarbon content on earth is enough to last a century, but the problem lies in lack of knowledge on its development and usage. These sources are limited by limitations in scale, feasibility and fitness (Holmes, 2004). 3. G overnment Interventions: Most of government regulations in the energy industry are directed towards regulating supply. Operational policies, regulations on carbon emissions and energy security norms affect both the demand as well as the supply side of energy business. Role of Board of Directors and Senior Management Post recession, the scene for energy companies has not only been tough but also challenging in terms of greater project undertakings and complex compliances. Companies have also had to venture in remotest regions simply to manage demand and supply side challenges. Management has to focus on strategy, production, enterprise risk along with operational excellence. With the advent of regulators, management has started to recognise the need for risk management to enhance business performance. With time, a lot of change has come in managing enterprise risk. New tools, better techniques and risk measuring methodologies have come up. One can only predict how enterprise risk man agement shall evolve in the coming times. As Energy sector risk officers, senior managers and the board of directors need to be have the capability to comprehend what possible risks could potentially arise in the near future and how exactly to take preventive measures that will help in combat. With such approach, all downsides that

Effective Career Management and Planning and Who Is Responsible for Essay

Effective Career Management and Planning and Who Is Responsible for This - Essay Example Career management's main task is to maintain the careers of the employees who have been enrolled on the active roster of an enterprise or a company and thus bolster their careers in the light of growing trends, changing circumstances and problems that might arise from time to time. This also means that employees are better understood by the organizations not only with regards to their own individual standpoints but from the whole industry's stance as well. This can be a positive sign since people would trust the initiatives which are taken by the corporations and thus aspire to contribute in a better and more productive manner as and when the need arises. In fact, this will be a proactive step rather than the one that needs encouragement and a pat on the back every now and then. Proactive efforts would reap far better and more fruitful results than a company which just praises once an employee does something extraordinary. (Llewellyn, 2002) Career management is not a new field that c omes under the management of human resources in organizations rather it is one tenet which needs to be discussed at length as the same was missing in the past, as far as organizational ranks are concerned.Effective career management comes about with a desire to have personality assessments and then to follow them in line with the technological changes which come ahead in one's career pathway. Advances in different fields of technology have done a great deal to produce miraculous devices and solutions. In some circumstances, however, these advances have created problems for the elderly. More aggressive technology approaches are used to extend the life of the elderly. (Rothwell, 2005) On the whole, the elderly, as well as others, welcome that development - even if they fear some of its consequences. The planning phase within career management and eventually the progression comes about with a sense to 'do it right' and to set the ball rolling within the personality domains. Career mana gement from the perspective of an organization also becomes an interestingly debatable task - more so with the advent of the human resource management regimes. This department takes care of the issues that are encountered by the professionals while they are undergoing career progression, settling problems and a host of other aspects.