Managing Financial Risks for Materials in Electrical Network Investments
Kautonen, Don (2024)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024052816707
https://urn.fi/URN:NBN:fi:amk-2024052816707
Tiivistelmä
This thesis explores material risk management practices within the Finnish electrical utilities sector, aiming to provide an understanding of the challenges and opportunities in this critical industry. Through theoretical frameworks and empirical findings, the study identifies key areas of concern, focusing on the financial struggles faced by utilities due to material risks during the years 2021-2023.
Through a literature review, a survey with commercial banks and a pragmatic inductive research approach, this study aims to find opportunities to increase value. Findings from the survey of 77 Finnish electrical utilities reveal that over half of the participants reported that material price volatility between 2021-2023 affected their investment decision. The absence of financial hedging and significant percentage facing unexpected risks highlights the necessity for more resilient strategic risk management methods.
This thesis contributes to understanding current risk management practices and proposes strategic recommendations for implementing new technologies and advanced risk management practices.
Keywords: risk management, electrical utilities, material risks, price instability, digitalization, financial tools, cybersecurity threats
Through a literature review, a survey with commercial banks and a pragmatic inductive research approach, this study aims to find opportunities to increase value. Findings from the survey of 77 Finnish electrical utilities reveal that over half of the participants reported that material price volatility between 2021-2023 affected their investment decision. The absence of financial hedging and significant percentage facing unexpected risks highlights the necessity for more resilient strategic risk management methods.
This thesis contributes to understanding current risk management practices and proposes strategic recommendations for implementing new technologies and advanced risk management practices.
Keywords: risk management, electrical utilities, material risks, price instability, digitalization, financial tools, cybersecurity threats