Risk Management: An Essential “Tool” for the Extractive Sector

Abstract

Risk management is a methodology through which industry can proactively manage risks (inclusive of potential opportunities and threats), which is a common practice for operators all over the world. For the extractive industries, due to the highly variable operating parameters, such as site-specific conditions, geographical location, local environmental conditions, behavior and characteristics of the ore, and the geological background of the deposit, Risk management (RM) is an essential tool. Risk management as a management technique has developed significantly over the past 20 years, with an array of different tools and techniques being increasingly used globally to address risks pertinent to the extractive sector. The sustainability of the extractive sector will be guided by the environmental, occupational safety and health, and the societal approval of the extractive operations, including the processing plants. Risk management is a holistic approach that assesses all risks associated with the facility’s construction, operation, and closure. This article attempts to highlight the advantages of the implementation of RM approaches by the extractive sector and intends to promote the idea that RM can act as a vehicle to optimize the overall safety and environmental performance of the extractive sector.