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Risk appetite / Risk team structure [46]

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Bullet points include: Audit and Finance Committee approved documents in summer 2000 Establishing roadmap for implementation Overall aim of Hydro One’s ERM Framework was not risk elimination or reduction per se, but rather achievement of optimal balance between risk and returns Risk defined by reference to potential that event, action or inaction will threaten Hydro One’s ability to achieve its business objectives Described in terms of likelihood of occurrence and potential impact / magnitude Broad categories include: strategic, regulatory, financial and operational risks

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