RISKS AND UNCERTAINTIES

WCU seeks to identify and manage such risks through rigorous technology planning and implementation of preventative and detective controls.

cyBerSecurity

WCU and its affiliates operate complex information systems including Smart Metering and SCADA networks. These systems are integrated across the electricity sector and carry growing volumes of data. The increased volume of data and integration increases exposure to information security threats, including cybersecurity risks.

Our information and operational systems and information assets could be put at risk by a security breach, data corruption or system failure at a shared resource or common service provider.

cuStomer and media perceptionS

Electricity utilities across Ontario are confronted with risks arising from negative customer and media perceptions. These relate especially to high commodity prices in the electricity sector, which are outside the control of The ENWIN Group.

Our local reputation is strong, and we are becoming recognized locally for our focus on customer value. This should enable WCU to manage the impact of customer dissatisfaction with the electricity sector at large, however the precise scope and nature of this risk factor cannot be foreseen.

WCU's subsidiary, EWU, also provides potable water production, transmission and distribution services through its water division. The potential for contaminated source water may be viewed as an additional enterprise risk.

laBour force demoGraphicS

Across the electricity sector, retirements are outpacing new entrants to the workforce, which could have an adverse impact on WCU's ability to build a sustainable workforce and achieve its business objectives. This is particularly evident in field personnel.

Failure to recruit and retain talent can lead to workforce overload and knowledge gap, which may impact quality and safety.

As a significant portion of WCU's experienced workforce retires over the next decade, our continued focus on training and safety will be critical in maintaining safety and reliability across our system.

Our investments in safety programs, apprenticeships, internships, diversity, knowledge management, and succession planning are designed to manage risks relating to workforce demographics.

Weather

Severe weather can significantly impact financial results, in part through increased capital and maintenance costs to repair or replace damaged equipment and infrastructure. Weather fluctuations also influence distribution revenues in the commercial and industrial sectors, which tend to increase with severe weather and decrease with moderate weather.

economy

The state of the local, national and international economies could have a significant impact on WCU's business performance, through factors such as inflation, customer credit risk, weakening demand for electricity and/or value-added services, and availability of market capital to fund growth. The economic climate could