LOSS MANAGEMENT MATRIX (LOSS MANAGEMENT MATRIX) MODEL IN POWER GRID ENTERPRISES
DOI:
https://doi.org/10.5281/zenodo.20138059Keywords:
LMM, loss management, matrix, internal control, RIIO–ED2, incentive system, corporate governance, “Three Lines of Defense”, monitoring, KPI.Abstract
The article develops the “Loss Management Matrix” (LMM) model, which integrates internal
control and financial incentive systems based on accounting and audit data in order to reduce losses in
electric grid enterprises. The study highlights mechanisms for monitoring, analyzing losses, and evaluating key
performance indicators (KPIs) based on corporate governance principles, the “Three Lines of Defense” internal
control model, and the RIIO–ED2 approach. In addition, the significance of the proposed model in improving
management efficiency and optimizing losses in electric grid enterprises is substantiated.
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