Electrical power companies are operating today in a turbulent environment characterized by changes in energy regulatory policies, opening of the electricity markets, competition and a subsequent loss of market share, increased customer demand, increased expectations from stakeholders; price volatility of electricity, fuel and CO2 emissions; difficulties in securing fuel supply routes, difficulties in securing transmission facilities at acceptable prices and other factors. An effective risk

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... ement system can permit an enterprise to recognize opportunities and react to change at the right time, i.e. to protect and increase the company value. In this paper, a hypothesis is presented that there is a correlation between the effectiveness of a risk management system and market competitive intensity, MCI. For the purpose of testing this hypothesis, an index has been developed to measure the effectiveness of a risk management system. The results of research conducted on a sample of twenty—one electrical power companies operating both inside and outside the countries of the European Union confirm this hypothesis.