Our approach to risk management is to identify, monitor, and manage the key controllable risks facing the Company and consider appropriate actions to respond to uncontrollable risks.

Our risk management process includes:

• controls and procedures for reducing controllable risks to an acceptable level
• the identification of actions for events outside of management’s control

Acceptable levels of risk are established by the Board of Directors and govern the Company's decisions and policies associated with risk.

We use an Enterprise Risk Management (ERM) Program to identify, evaluate, report, and monitor key risks that may affect the achievement of the Company's strategic and related business objectives. The ERM Program aligns with the International Organization for Standardization’s standard for risk management, ISO 31000.

Management is carried out at three levels, with risk assessments carried out in concert with core corporate processes, strategic planning and business planning, and budgeting.

Our Board of Directors provides oversight to the risk management process, which includes identification, evaluation, reporting, monitoring, and mitigation of key risks that may affect the achievement of our business objectives.

Management is responsible for approval of the framework for:

• enterprise risk management
• policy review and recommendations
• risk management policies and processes
• monitoring and reporting of compliance with the policies and processes
• conducting risk mitigation activities within specific operational areas

Our risks and risk management approach are described in detail in our Management’s Discussion and Analysis on pages 38 to 46 of our 2013 Annual Report.

Public Policy

In accordance with the Federal Accountability Act, we report all lobbying of Canadian federal and provincial Designated Public Office Holders (DPOHs) on a monthly basis.

In 2013, we participated in 24 meetings with DPOHs, primarily regarding greenhouse gas and air emissions policy. We participated in discussions regarding:

• capital stock turnover for coal-fired power plants;
• market structure;
• greenhouse gas and other air emissions; and
• electricity transmission policy in the jurisdictions where we operate.

We contributed no monies to Canadian federal political parties in 2013, 2012, and 2011. Total expenditures on various political events and fundraisers across all provinces in Canada in 2013 were $46,133.75 (compared to $32,319 in 2012, and $30,596 in 2011).

Details related to GHG regulation and climate change, including estimates of potential compliance costs, are included in our 2013 Annual Information Form.