Building and executing an effective risk system for the mining industry

"As human beings, we have managed risk since the dawn of the ages and have been adept at doing so. In order to survive, we hunted or gathered. If we did not take enough risk, we died. If we took much risk, we died (Fig. 1). As individuals and tribes, risk had to be optimized to maximize our chances to thrive, as individuals and as tribes.In today’s world, the risks are vastly different, but in order to thrive, these must be managed. And no industry knows this as much as mining. In fact, the International Council of Mining & Metals (ICMM) has proposed the Critical Risk Model (Fig. 2) as a means of identifying critical risk, critical controls and associated performance standards. The ICMM focuses on sustainable development performance in the mining and metals industry. It has 23 members, representing some of the largest mining companies in the world.This approach is going to help the mining industry. But it must be applied effectively, with the acknowledgment that the system alone cannot be effective. We can say this confidently, as even companies known for the strength of their risk and safety management systems continue to experience significant incidents, and, in some cases, catastrophes. Why does that happen when all safety metrics, including injury rate, are pointing in the right direction? In the view of the author, it is only when leadership, culture and systems work in complete harmony that the resilience of an organization to manage its significant risk is at an optimal level. It remains an ongoing leadership challenge to maintain that balance and the optimal mindset in the organization. So how do you maintain that special balance?Let’s start with a basic premise. Leadership, supported by simple effective systems, creates culture which creates outcomes. Everyone going home safely is an outcome, as is cost effective operations, and to achieve those outcomes efficiently, the organization must focus on the inputs. And those inputs include effective leadership, effective systems (for the purposes of this article, risk and health, safety and environment (HSE) systems), good planning, stable operations and competent workers. This article will focus on gaining maximum performance from your risk management system."