- 2014 Performance
- Future Focus
As a global mining company, Newmont faces risks that are becoming more complex. Understanding these risks – from workforce safety and political uncertainty to expectations regarding benefit sharing and access to water and energy – is critical to our ability to deliver shareholder value and protect people, the environment and our reputation.
Effectively identifying, monitoring and managing risks based on their likelihood and significance is central to our risk management approach. Because our risk profile is broad, our approach ensures that risks and issues are managed by experienced personnel who are closest to and best understand the risk. We use a centralized Enterprise Risk Management (ERM) process to identify, analyze and report the top risks to Newmont leaders and Directors.
Our ERM process is a critical source of business intelligence, and is structured to comply with the intent of the International Standard for Risk Management (ISO 31000). This system ensures we take a comprehensive approach that includes:
- Establishing context – considering the scope, schedule, stakeholders and deliverables that must be completed ahead of assessing the risk
- Identifying risk – defining the potential exposure for a given function, project or system
- Analyzing risk – reviewing all pertinent details, causes and the likelihood and magnitude of potential consequences
- Evaluating and treating risk – ranking and developing plans to avoid, transfer, mitigate or accept risks
- Risk monitoring and review – effectively monitoring plans and making course adjustments as necessary
- Communicating and consulting – driving effective horizontal and vertical communications across all areas to drive well-informed decision making
Our country risk management program guides our approach to understanding and managing the economic, political – which includes risks related to corruption – social, environmental, infrastructure and security risks in the countries that are important to our business. After countries are identified and ranked, country strategies are developed to provide a baseline from which to track and manage the identified risks.
When significant events or issues require a crisis or emergency response, Newmont’s Rapid Response system ensures the plans, people and resources required to respond are quickly activated. The system features common language, processes and clear accountabilities to support an effective and coordinated response on the local, regional and global levels. Every team must conduct annual training as well as drills and simulations to ensure a state of readiness in the event of a major incident.