Our global operations create both opportunities and risks due to the nature of mining, exploration and development activities.
They provide significant local employment and economic benefits. They also use water and energy resources and can have potentially significant environmental impacts if they are not designed and managed well. Our operations also affect community stakeholders, including indigenous peoples. These risks must be managed in order to maintain the Company’s ability to develop or operate its mining properties. Kinross has focused attention on managing these issues by setting high performance standards, allocating the necessary resources, assigning responsibility and accountability for their management, and routinely reviewing performance, improvement opportunities and risks.
Under the Kinross Enterprise Risk Management (ERM) program, each operating site, region, corporate department and capital project undertakes a process of identifying, assessing and addressing risks from all sources that threaten the achievement of its business objectives. Risks are identified under a broad range of categories through a variety of activities, including:
- Engineered Risk Assessments (ERAs) – a comprehensive review of potential environmental, safety and operational risks that could arise as the result of failures of engineered systems, such as pumps, pipelines, dams and structures, conducted during the mine design phase and periodically during operations;
- Security Risk Assessments;
- Political Risk Assessments;
- Human Rights Risk Assessments;
- Insurance Inspections;
- Project Stage Gate reviews;
- Annual risk management workshops, which bring together corporate and local leaders to analyze and rank operational, economic, political, environmental and social trends and risks, including human rights and security risks that could affect current performance or future plans.
On a quarterly basis, the Audit and Risk Committee of the Kinross Board of Directors reviews the principal risks affecting Kinross’ business and management's updates on their mitigation. In addition, a number of other board committees, including the Operations and Technical Committee (OTC) and the Corporate Responsibility Committee (CRC), review specific risk issues relevant to their committee mandate.
Specific risk factors are outlined in the Company’s 2013 Annual Information Form available on our website. The Company’s submission to the Carbon Disclosure Project provides a detailed list and discussion of our potential risks related to climate change.