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Risk Management
EVOLVING

PROGRESS

PJM continued to focus on growing its risk management capabilities in 2021
  • 2021 marked the implementation of an enhanced Enterprise Risk Management strategy and practices across all PJM divisions.
  • PJM testified before FERC in February to offer insight on credit principles and practices, including recent, key reforms by PJM as part of the comprehensive overhaul of credit risk mitigation policies and procedures.
  • PJM and stakeholders also fully explored external clearing of the Financial Transmission Rights (FTR) Market.

Collectively, these steps represented progress toward fulfillment of comprehensive risk mitigation recommendations proposed by independent consultants to the PJM Board of Managers in 2019. PJM continues ongoing discussion of future market mitigation methodology enhancements with our stakeholders via forums such as the Risk Management Committee.

PJM will continue its work to implement additional approaches to mitigate, prevent and respond to risk in collaboration, coordination and communication with PJM members.

GridEx Supports Industry Coordination, Emergency Preparedness

PJM joined electricity industry organizations and government officials across North America for GridEx VI, a biennial grid security exercise hosted by the North American Electric Reliability Corporation (NERC). This exercise, held on Nov. 16–17, is designed to strengthen vital protocols in response to simulated cyberattacks and physical attacks on critical infrastructure in real time.

  • PJM’s GridEx participation involved more than 300 personnel during this biennial exercise. Teams included physical security, cybersecurity, information technology, gas-electric coordination, operations, communications and more.
  • PJM applies critical lessons learned to further hone emergency response and preparedness, training, and tools in response to evolving threats to our bulk electric system.
  • PJM has been a GridEx participant since the program’s inception in 2011.
PJM Hosts Joint Cybersecurity Information Session

PJM and its members take cybersecurity threats to the bulk electric system very seriously. Industry coordination of information about threats to the bulk electric system is a crucial component to maintaining the reliable distribution of power to 65 million customers in 13 states and the District of Columbia.

Last November, PJM reviewed the current threat landscape with peer organizations, including PJM members and stakeholders, grid operators, and the Electricity Information Sharing Analysis Center (E-ISAC). Information was shared by the Cybersecurity Risk Information Sharing Program, known as CRISP, which promotes and enables secure information sharing between private sector utilities and the U.S. Department of Energy.

Through actionable and informed coordination with government partners, PJM and its members are better positioned to prepare for and respond to cyber and physical threats and to minimize disruptions.

“Cybersecurity is the ultimate team sport. Partnership and collaboration are essential. The importance of working across the industry, and with our state and federal government partners, to share threat information and best practices cannot be overstated.”

Tom O’Brien, Senior Vice President & Chief Information Officer