Evaluating Governance in Nuclear Risk Management: ENEC Case

This case study delves into the effectiveness of governance on risk management within the nuclear energy sector, using the Emirates Nuclear Energy Corporation (ENEC) as a prime example. It highlights the critical role of risk management in the nuclear sector due to associated health, safety, financial, and market risks. ENEC, established in 2009 in the UAE, aims to provide safe, clean, reliable, and efficient nuclear energy. The organization's risk management policy revolves around production, financial, and safety issues. The study emphasizes that corporate governance is vital for facilitating risk management and ensuring the sustainable development of the organization by effectively managing risk factors and achieving business goals. The research concludes that aligning risk management with corporate governance is crucial for the competent and sustainable development of business-oriented organizations like ENEC.

The effectiveness of Governance in Risk Management in Nuclear Energy Sector: A Case
Study of Emirates Nuclear Energy Corporation (ENEC)

Contents
Introduction......................................................................................................................................3
Risk Management in Nuclear Sector...............................................................................................3
Emirates Nuclear Energy Corporation.............................................................................................3
Corporate Governance for Risk Management.................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

Introduction
The term risk management is a coupled terminology in the business organizations which
deals with the financial risk evaluation and anticipation along with providing some potential
measures to circumvent and curtail its impact on the organizational development. Considering
the following aspects, this report is undertaken to discuss the efficacy of governance on risk
management in the nuclear energy sector. In order to present a vital discussion over the proposed
topic, a case study of Emirates Nuclear Energy Corporation (ENEC) is integrated. The
significance of risk management in the nuclear sector can be understood from the fact that it
helps the majority of the country's population in meeting their electricity needs.
Risk Management in Nuclear Sector
Consideration of risk management becomes highly crucial for the organizations operating
in the sector of nuclear reactions as various risks such as health, safety, financial and market
risks are associated with it. The contemporary market of such firms experiences
multidimensional risks for remaining competitive and commercial in the market. Thus, the
managers of such firms are proposed to associate operational practices with some effective risk
management strategies (Aven, 2016). The risk management policy of ENEC is centrally
surrounded by 3 major aspects, which are production, financial and safety issues.
Emirates Nuclear Energy Corporation
ENEC is a UAE based nuclear energy organization which came into existence in the year
2009 with a visionary to deliver safe, clean, reliable and efficient nuclear energy services to the
population of the nation. The government of Abu Dhabi also considers this organization as an
important channel of investment due to ENEC’s contribution in designing the first nationally
owned nuclear plant of UAE (Alameri, Alkaabi and Beeley, 2018). The orientation of the

organization is strictly aligned to influence the upcoming supremacy and development of UAE
through sustainable civil nuclear energy program.
Corporate Governance for Risk Management
Corporate governance of every organization is a vital segment to facilitate the attributes
of risk management along with the functioning of the firm. It potentially administers the
sustainable development of the organization by managing risk factors and accomplishing the
proposed business goals. The prime factor, which gravely affects the business of an organization,
is the consequences of the financial crisis. Therefore, besides the elimination of risk factors,
concern about the risk mitigation measures for probable sources of risk is also crucial for the
organizations (Calomiris and Carlson, 2016). Moreover, the functionalities of corporate
governance and risk management are solely independent of the profit perspectives of the
organization as they assist the long-term sustainable development policies.
Conclusion
On the basis of basis of facts and deliberations presented above, it can be concluded that
risk management plays a significant role in the contemporary business-oriented organizations.
The attributes of risk management aligned with corporate governance empower the competent
and sustainable development. Therefore, a case study of ENEC is incorporated in this research
report to justify the significance of governance on risk management in the nuclear energy sector.
Overall, it can be inferred that all the aforementioned arguments and discussions potentially
contributed to validating the objective and aim of this research report.

References
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.
Alameri, S.A., Alkaabi, A.K. and Beeley, P., 2018. UAE Experience in Nuclear Safety and
Security Programmes.
Calomiris, C.W. and Carlson, M., 2016. Corporate governance and risk management at
unprotected banks: National banks in the 1890s. Journal of Financial Economics, 119(3),
pp.512-532.