Risk Management Implementation
A leading intermediate global gold producer
We were asked to establish a Group Risk Management function, including design and delivery of a risk management framework, supporting system and development of Group wide risk content together with approach to sustain processes. This included working with the Executive to create the definition and development of Risk Appetite and tolerances. We implemented a process for the consistent identification, tracking and management of key risks along with measurement against a defined risk appetite position. Risks were not adequately being considered in business decisions and unable to consider the implications of key tactical and strategic decisions, especially with competing demands for free cash to invest in infrastructure and proven reserves. Potential to develop high profitable assets with infrastructure needs of over $1billion, potential divestment and capital raising options with over 5,000 employees.
Geoff was contracted to the newly formed Group Risk function reporting to the VP Sustainability. Started with establishment of a Risk Management framework, he developed a ‘Risk Universe’ and rolled out a consistent approach across all global business units.
He defined a Group wide approach to risk appetite which considered the Group’s overall risk appetite position and then cascaded this down across the organisation. To enable this Geoff and his team completed the following tasks:
Completed Operational (All operational sites plus exploration), Country Specific (Australia, US and Turkey) and Corporate / Strategic Risk Registers. These included numerous site and corporate risk workshops, aimed at development of specific assessments on current exposures, clear strategies to mitigate and responsibilities to develop.
Worked with the Organisation’s Executive and Board of Directors to develop a set of Risk Appetite Statements, using the organisation’s risk category model as a base, and linking these into key metrics. Helped calibrate measurement of position against these appetite statements using a mixture of tolerances and hard limits to enable regular measurement of performance. Developed a process for cascading these appetite statements down across the Group and implementing a quarterly assessment and reporting process for the regular consideration of performance against risk appetite.
- A Risk Management Framework including a Risk Category Model, Quarterly Risk Assessment methodology and Quarterly Risk reporting
- Business Unit, Operations, Country level and Strategic Risk Registers
- Risk Appetite Statements for the Group and main business units with relevant quantitative parameters, measures and tolerance levels;
- An approach for the regular refresh of the Risk Appetite Statements to ensure they accurately reflected the organisation’s desired risk profile; and
- A regular reporting structure for assessment of position against risk appetite including integration into Risk Committee oversight.