ABSTRACT:The basket of business risks that need to be managed is becoming more and more complex, and their interactions, secondary effects and the possibility of unintended consequences requires an integrated approach to risk management. Environmental risks can impact significantly on the ability of a company to achieve its intended goals1. Environmental legislation and regulation is becoming increasingly stringent, thereby increasing company exposure to environmental risks, with Directors being held liable for environmental damage. The need for adequate and appropriate systems of internal risk control has seen the development of a performance linked risk assessment and management system in Anglo American plc. This fledgling system is presented, the primary value of which lies in its applicability at all levels of operation, the semi-quantifiable (but nonetheless uniform) basis of the assessment and the ability for results to be aggregated at corporate level for the purposes of Board assurance.
1 INTRODUCTION
2 THE DRIVERS FOR RISK MANAGEMENT
2.1 Background to the Combined Code of Corporate Governance
2.2 Stakeholder Expectations
3 THE APPROACH TO RISK ASSESSMENT AND MANAGEMENT IN ANGLO AMERICAN PLC
3.1 Defining Group-Wide Risks
3.2 Determination of Risk
3.3 Categorising and scoring the Risks.
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4 THE RISK APPROACH: IT’S STRENGTHS AND OPPORTUNITIES FOR IMPROVEMENT
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5 CONCLUSIONS
