Management’s Discussion and Analysis
Digital Technology Adoption The risk the organization is unable to meet technology demands, negatively impacting customer experience, employee satisfaction, and operational efficiencies. • Like many other organizations, SaskEnergy is currently in the process of modernizing a number of technology solutions to meet customer, employee and stakeholder expectations while also addressing risk of continuing to use outdated and soon-to-be unsupported technology. Technology modernization is a complex and important undertaking that requires related efforts to adapt processes and manage change. Significant technology change brings risk in project execution and change adoption. • SaskEnergy is managing this risk by producing a technology roadmap and working with experienced providers to assist in system implementations, change management and training. Third-Party Risk The risk the Corporation is exposed to negative outcomes due to a third party failing to protect data or systems, or failing to provide agreed upon business activities, functions or services. • SaskEnergy conducts detailed due diligence before entering into contracts with third parties for services, including IT related support, due to the risk of breaches at the third party which may implicitly impact the Corporation. • SaskEnergy has contract terms, service level agreements, and a privacy program in place to mitigate third-party risk exposure. Additionally, the Corporation is focused on formalizing its third-party risk management program to enhance monitoring and reviews over existing third-party contracts. • Strong incident management and business continuity plans provide a further layer of mitigation.
Supply Reliability and System Capacity The risk that natural gas is unavailable to meet customer demand requirements due to contractual or physical supply constraints or lack of system capacity to deliver the product when and where it is needed. • SaskEnergy primarily relies on imported natural gas to serve its customers. Upstream operational challenges may pose a threat to SaskEnergy’s ability to obtain and transport the required natural gas into the province. • System capacity is required to move natural gas throughout the province to serve customer homes and businesses. Constraints within the system may pose a challenge to move the natural gas where it is needed. • SaskEnergy addresses this risk by engaging in natural gas line regulatory and toll task force forums. The Corporation also leverages its integrated transmission and storage system design, which has multiple diversely located border receipt points to add contingency and additional supply routes where possible. In addition, SaskEnergy’s System Operations group is able to move natural gas where it is needed, and its System Design & Planning group identifies and addresses longer term system capacity constraints. Indigenous Engagement The risk that Indigenous People and First Nations choose not to engage with SaskEnergy. Failure to appropriately engage with Indigenous People and First Nations negatively impacts relationships and operational effectiveness. • SaskEnergy works closely alongside Indigenous People and First Nations communities. These relationships are important, and appropriate engagement should always be considered by the Corporation. • The Corporation has established an Indigenous Procurement Policy and strategic alliance agreements, and focuses on educating staff to further improve engagement efforts.
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