Sustainability website / Policies / Risk Management Policy

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Risk is an intrinsic aspect of business and is inseparable from opportunity. It is our ability to pursue opportunity with enthusiasm, entrepreneurial flair and innovation, secure in the knowledge and confidence that we have effectively identified and managed the associated risks, that determines our success.

A robust and comprehensive programme – embedded throughout the organisation – to identify, understand and manage risks provides greater certainty to our shareholders, employees and other stakeholders that we will be successful in our Mission.

The objective of our risk management system is to ensure an environment where we can confidently grow shareholder value through developing and protecting our people, our assets, our environment and our reputation.

To achieve this, we have implemented a structured and comprehensive risk management system across the Group, which establishes a common understanding, language and methodology for identifying, assessing, monitoring and reporting risks and which provides management and the Board with the assurance that key risks are being identified and managed. While the responsibility for the risk management system ultimately rests with the Board, clear roles and responsibilities are established for each commodity business unit.

Our risk management policy requires each commodity business and corporate function to undertake a comprehensive annual risk review, as part of their ongoing process for identifying, evaluating and managing significant risks. The conclusions of this review are fully integrated into the annual business plans presented for Board approval. The commodity business units are responsible for implementing and managing appropriate risk control systems and processes within their operations. Progress against plans, significant changes in the business risk profile and actions taken to address controls and mitigate risks are reported to the Executive Committee and the Board on a monthly basis.

The Audit Committee, on behalf of the Board, reviews the effectiveness of the Company's risk management system. Assurance that risks are being effectively identified, managed and controlled is provided to the Group Executive Committee and the Board through the assurance programmes operated independently of management by Group Internal Audit and by Health, Safety, Environment and Community (HSEC).

January 2005

Document		Published	Size (Kb)
Xstrata Group Risk Management Policy		January 2005	36 Kb

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