OZ Minerals is exposed to numerous risks across its business, most of which are common to the mining industry. The company’s commitment and approach to managing these risks is outlined in the company’s Risk Management Policy and is available at Risk Management Policy.
The company’s Risk Management Policy is aligned to the Australian Standard for risk management and is used to identify, analyse, evaluate, treat and monitor risks across all activities of the business. The Executive Committee periodically reviews the risk register produced through this process and the status of action items identified to mitigate risks.
Both the Sustainability Committee and Audit Committee assist the Board in monitoring the company’s risks.
The Sustainability Committee monitors the company’s non-financial risks so far as they relate to the environment, health, safety or community related risks. During 2009, the Board approved changes to the Sustainability Committee Charter so that the Sustainability Committee no longer reviews and monitors non-financial risks that do not relate to core areas of responsibility, namely safety, environmental, health and community related risks. These other non-financial risks, such as reputational risk and legal risk, are now monitored and reviewed by the full Board. The Audit Committee monitors the company’s financial risks.
The Audit Committee reviews and assesses the adequacy of the company’s internal control and financial management systems and accounting and business policies. The Audit Committee is given further assurance on the company’s financial management systems through the company’s independent internal audit function.
Senior management are responsible for risk management in their respective areas of accountability. They ensure that procedures exist to monitor risks and, through observation and audit, gain assurance that effective controls are implemented and consistently applied.
Our OZ Minerals Risk and Opportunity Management Standard provides a common framework for the systematic management of risks and identification of opportunities to OZ Minerals in the areas of health, safety, environment and community relations. The standard applies to all our managed facilities (including contractor activities) and addresses the risk management process (including risk assessment and risk mitigation/control), risk register, action planning, training, audits and reviews.
