Federal Reports

This review was the first in a series of reviews that will benchmark TVA's performance in key areas and answer the question, "How is TVA doing in regards to Customer Relations." In conducting this review, we (1) assessed key performance measures and their alignment with the key strategic objectives; (2) evaluated TVA's results relative to targets and available benchmark information; and (3) identified key management challenges that could affect how successful TVA is in achieving these strategic objectives.

Since the Office of the Inspector General's previous review of TVA's risk program in 2003, TVA has enhanced its Enterprise Risk Management (ERM) capabilities in the following areas: risk identification and assessment; management tone; strategic decision-making support; commitment to ERM staffing; and promotion of an ERM culture. The areas in need of improvement include: linking risks and objectives to effectively identify and prioritize risks, focus discussions, and allocate resources; clearer mapping of likelihood and severity with associated risk; measurement of inherent risk to identify critical risks with a higher need for monitoring; role of the Board and executive management in defining risk tolerance which is policy driven; a formal, comprehensive risk policy approved by the Council and Board; and increased reporting and discussions of ERM with the Board. We recommended TVA address the areas needing improvement. Management generally agreed and is taking or plans to take appropriate action.

To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.