Sustainability website / Sustainable Development / 5: Risk and Change Management

5: Risk and Change Management

Intent

Sustainable development (SD) hazards associated with Xstrata's operations, including those associated with change, are systematically identified and, where reasonably practicable, eliminated or otherwise treated. External SD issues are identified and tracked in a timely and coordinated manner at each level of the organisation and their potential negative and/or positive consequences are understood and communicated to management at the appropriate levels. Internally created and externally imposed SD risks are incorporated into central strategy and business planning processes.

Requirements and Expectations

5.1

The Group risk management process and culture is used to drive continual improvement in SD performance through:

• The development, implementation and continual improvement of systematic SD risk management processes and procedures
• Systematic identification of SD hazards and external issues associated with Xstrata's operations
• The assessment of SD risks, including those that aggregate at the Group, commodity business and division level, using recognised analysis and evaluation methodologies
• Recording of SD risks in defined registers which are reviewed at least annually
• Treatment of risks using options that are consistent with a 'hierarchy of controls' and that is based on recognised analysis and evaluation methodologies
• Periodic assurance of the adequacy and effectiveness of controls
• Communication of information to potentially affected parties and other relevant  parties on identified risks and controls and why particular treatment actions are required
• The development and implementation of SD incident recovery plans.

5.2

The implications of changes in Xstrata's operations, SD management and external and internal risk contexts and the ramifications in terms of risks and controls are systematically assessed as an integral part of the commodity business, division, site and project level change management processes.

SD risks introduced through changes are systematically identified, analysed, evaluated and treated by the risk management processes that are required at each level of the organisation.

5.3

Appropriate mechanisms are required to monitor and review the residual SD risks that remain after the implementation of specified risk controls and treatment measures.