Title
Contents
ACKNOWLEDGEMENTS 7
FOREWORD 10
1.0. INTRODUCTION 11
1.1. Leading Practice Sustainable Development Program 11
1.2. Audience 11
1.3. Risk assessment and management context 11
1.4. Scope 12
1.5. Business case 12
2.0. SUSTAINABLE DEVELOPMENT AND RISK MANAGEMENT 13
2.1. Introduction 13
2.2. Risk: Key definitions and concepts 14
2.3. Risk and sustainable development 15
2.4. Research and development 22
3.0. TYPES OF BUSINESS RISK 23
3.1. Introduction 23
3.2. Types of business risk 24
3.2.1. Workplace health and safety 24
3.2.2. Risk and the natural environment 27
3.2.3. Community health risk 33
3.2.4. Regulatory risk 35
3.2.5. Production risk 37
3.2.6. Risk to reputation 38
3.2.7. Financial impact (direct and indirect) 38
3.2.8. Risk at closure and post closure (legacy) 39
3.3. Enterprise-wide risk management 42
3.3.1. Risk and materiality 42
3.3.2. Enterprise-wide risk framework 44
4.0. RISK MANAGEMENT PROCESS 46
4.1. Introduction 46
4.2. Risk management process 47
4.3. Applying risk processes to all stages of mine life 49
4.4. Applying risk processes to the materials value chain 50
5.0. RISK ASSESSMENT: IDENTIFYING AND DEFINING RISK 54
5.1. Introduction 54
5.2. Establishing the context 55
5.3. Risk identification 56
5.4. Process for identifying risk events 56
5.5. Risk workshops 56
5.6. Documentation 58
6.0. RISK ASSESSMENT: ANALYSIS AND EVALUATION 59
6.1. Introduction 60
6.2. Qualitative methods 60
6.3. Semi quantitative methods 62
6.4. Quantitative methods 67
6.4.1. Risk maps 68
6.4.2. Risk profiles 68
6.5. Periodic reviews 71
6.6. Conclusions 71
7.0. RISK CONTROLS 72
7.1. Introduction 73
7.2. Risk control design 73
7.3. Risk control execution 75
7.4. Emergency response, crisis management and business continuity plans 76
7.5. Control assurance 76
8.0. RISK COMMUNICATION 78
8.1. What is risk communication? 78
8.2. Principles of risk communication 79
8.3. Risk communication process 82
8.4. Collaborative risk communication 85
8.5. Toolkit 85
9.0. CONCLUSION 86
GLOSSARY 88
REFERENCES 91
WEB LINKS 94
Handbooks in the Leading Practice Sustainable Development Program for the Mining Industry Series 95
Figure 1. Minerals Industry Risk Management (MIRM) Maturity Chart, based on the Hudson Ladder and a similar approach used by Bayside Aluminium, a BHP Billiton site in Richards Bay, South Africa. Source: NSW Department of Primary Industries, 1997. 26
Figure 2. enHealth Council Risk Management framework. 34
Figure 3. Generic framework for enterprise-wide risk management. 44
Figure 4. AS/NZS 4360:2004 Risk management steps. 48
Figure 5. Generic materials stewardship value chain for the minerals industry. 50
Figure 6. Example of a risk map. 68
Figure 7. Example of a risk profile. 69
Figure 8. Example of an exposure profile. 70
Figure 9. Types of risk control. 74
Figure 10. Framework and steps for risk communication in the context of risk management. 83
Table1. Illustrates the types of fields normally recorded in a risk register. 58
Table 2. Example of a qualitative risk matrix. 61
Table 3. Example of a basic semi-quantitative risk rating matrix. 62
Table 4. Example of an alternative, basic semi-quantitative risk rating matrix. 63
Table 5. Example of a consequence table. 65
Table 6. Ladder of public participation. 84