Enterprise Risk Management

The Company adopts a risk philosophy aimed at enhancing shareholder value by sustaining competitive advantage, and managing risks, enabling the Company to pursue strategic growth opportunities with greater speed, skills and confidence over its competitors.

To put this philosophy into action, the Board, through its Board Risk Oversight Committee, adopted an Enterprise Risk Management (ERM) system that ensures all business risks are identified, measured and managed effectively and continuously within a structured and proactive framework. The Company’s ERM is based on the Committee of Sponsoring Organizations of the Treadway Commission-ERM framework. Values and standards of business conduct and ethics are important elements of the internal environment for risk management.


Risk Management Structure

The Board, through its Board Risk Oversight Committee, has the responsibility for overseeing risk management within the Company. Assisting the Board is the Chief Risk Officer (CRO) of the Company, who in turn, is supported by the Risk Management Committee. The Risk Management Committee is responsible for ensuring that all significant risks are managed adequately. The Company CRO reports to the Board Risk Oversight Committee the significant risks and related risk strategies, and the status of the risk management initiatives on a regular basis. In addition to the risk management teams, a cross- functional group composed of personnel with technical, financial, and legal expertise reviews the Company’s compliance with mining laws and regulations. The Internal Auditor reports to the Audit Committee the results of the review of the effectiveness of the risk management strategies and action plans adopted by management.