Developing effective risk management in a global mining group: A case study of Broadleaf

An international mining group had many dissimilar and fragmentary approaches to risk management across its business units, arising from the series of acquisitions and mergers that had led to its formation. The group felt that its approach to risk management as part of safety and environmental management was well advanced. However, it needed a fresh, consistent and comprehensive approach for all forms of risk across all its sites, including newly acquired upstream assets. In particular the group approach should to address the risks associated with asset integrity, trading and treasury activities, as well as mining operations. The group asked Broadleaf for practical advice on how to develop and enhance a suitable framework for managing all risks consistently across its operations. We suggested that this should be based on a critical evaluation of the elements already in place and should be informed by what is generally regarded as good practice in the resources sector. The entire project was spread over a year. Broadleaf supported the group until it felt confident in its own leadership of the changes required. Broadleaf facilitated a two-day, intensive workshop with a group of champions drawn from across the business. The workshop involved a series of modules that briefed the participants, facilitated gap analyses, developed a blue print for the framework, devised tools, wrote a policy statement and developed the implementation plan. Broadleaf prepared a guideline that included the risk rating system developed previously. It also included a range of templates and tools and described a process for establishing the context, conducting a risk assessment and developing risk treatment plans. This guideline, tools and templates were used as the basis of the subsequent training course. Broadleaf supported the group with the rollout of the framework at two locations in Europe and North America. The objective was to demonstrate the application of the concepts and tools introduced to champions in the training courses and to trial the process for risk assessment and treatment in the guideline. Broadleaf produced an engagement pack for use at all locations. It Page 3 of 3 included templates, copies of the policy, standards and guidelines and a short training workshop for managers.

1.1 With regards to the case study, analyse the objectives of a Risk Management Framework. (12)

1.2 In your opinion, describe the various stages contained within the risk management process.