Risk Management Model in Surface Exploitation of Mineral Deposits

2016 ◽  
Vol 61 (2) ◽  
pp. 293-308
Author(s):  
Cvjetko Stojanović
Keyword(s):  
Risk Management ◽  
Adverse Events ◽  
Management System ◽  
Mining Industry ◽  
Investment Project ◽  
Management Model ◽  
Structural Element ◽  
Investment Projects ◽  
Risk Management System ◽  
Mining Projects

Abstract Risk management is an integrative part of all types of project management. One of the main tasks of pre-investment studies and other project documentation is the tendency to protect investment projects as much as possible against investment risks. Therefore, the provision and regulation of risk information ensure the identification of the probability of the emergence of adverse events, their forms, causes and consequences, and provides a timely measures of protection against risks. This means that risk management involves a set of management methods and techniques used to reduce the possibility of realizing the adverse events and consequences and thus increase the possibilities of achieving the planned results with minimal losses. Investment in mining projects are of capital importance because they are very complex projects, therefore being very risky, because of the influence of internal and external factors and limitations arising from the socio-economic environment. Due to the lack of a risk management system, numerous organizations worldwide have suffered significant financial losses. Therefore, it is necessary for any organization to establish a risk management system as a structural element of system management system as a whole. This paper presents an approach to a Risk management model in the project of opening a surface coal mine, developed based on studies of extensive scientific literature and personal experiences of the author, and which, with certain modifications, may find use for any investment project, both in the mining industry as well as in investment projects in other areas.

scholarly journals Basics of building a risk-management system at mining enterprises

2021 ◽  
Vol 315 ◽  
pp. 04011
Author(s):  
Alena Chupryakova ◽  
Petr Kosinsky ◽  
Rimma Takhtayeva
Keyword(s):  
Risk Management ◽  
Management System ◽  
Mining Industry ◽  
Management Service ◽  
Software Products ◽  
Operational Risks ◽  
Risk Manager ◽  
Risk Management System ◽  
Mining Enterprise ◽  
Extreme Risk

This paper reflects the problematic situation in the field of risk-management at mining enterprises. It is connected with the fact that not all hired top managers understand the role and importance of the risk management system in the overall management system of a mining enterprise. However, an increase in the number and weight of the consequences of the onset of risk events has recently changed the vision of senior management, business owners and other stakeholders in favor of recognizing the need to create in the structure of mining enterprises, if not separate, specialized structural units, in the form of a risk management service, then at least introduction of a staff unit of a specialist - a risk-manager , who clearly understands what the organization is doing to form and increase the value of a business and how he can influence this, demonstrating his professional knowledge, skills, and even some insight in anticipating future risks of a mining enterprise ... But the economic situation in the region, the country and the world does not allow, due to financial constraints, to fully implement the technologies developed in theory and fixed in practice for the application of methods and approaches to risk management in the mining industry, including the purchase of expensive software products that allow the formation of an effective risk-management system. Therefore, mining risk management professionals need to take full advantage of the potential and benefits of the GRC system, which has existed since 2004, which aims to use a common language and corporate risk management methodology to achieve the company's strategic goals. The results of the studies presented in this paper state that the main risks that the owners of mining enterprises are concerned about are financial risks and operational risks, legal risks, commercial risks and the risk of fraud, as well as natural, environmental and man-made risks, but a significant part of mining enterprises in the region does not have a well-developed risk management system, does not carry out systematic work to identify risks, assess risks and their possible consequences, and therefore: either operate at extreme risk, taking catastrophic risk, or work at the margin of profitability, refusing to accept risks, even there, where you really need it. However, one should proceed from their understanding that technologies in the field of corporate governance of mining enterprises, including risk management, can not only form lines of defence against risks, but also increase the value of a mining enterprise through an effective risk-management system.

scholarly journals Sensitivity analysis as a decision-making tool for the implementation of an investment project in mining industry

2021 ◽  
Vol 21 (3) ◽  
pp. 295-303
Author(s):  
Elena A. Pozdnyakova ◽  
◽  
Liudmila A. Ramenskaya ◽  
Dmitrii S. Voronov ◽  
◽  
...  
Keyword(s):  
Sensitivity Analysis ◽  
Large Scale ◽  
Quantitative Methods ◽  
Mining Industry ◽  
Commodity Prices ◽  
Investment Project ◽  
Technical Equipment ◽  
Investment Projects ◽  
Sensitivity Analysis Method ◽  
Mining Projects

Introduction. Russian mining companies need to implement large-scale investment projects due to a variety of internal and external reasons. Projects are aimed at the development of new deposits, technical equipment and the modernization of existing ones. To make substantiated management decisions, a toolkit for analyzing the risks of investment projects is required. Theoretical analysis. The section contains the need to apply quantitative methods for assessing investment risks based on cash flow modeling. We have analyzed the possibility of the use of sensitivity analysis techniques, real options and Monte Carlo methods for the quantitative assessment of the mining industry investment projects risks. The result includes a justification of the feasibility of applying the sensitivity analysis method at the early stages of an investment project. Empirical analysis. The sensitivity analysis tested metrics such as production volumes, commodity prices, capital and operating costs on two mining projects. It was found out that the projects under consideration are the most sensitive to changes in the price of commercial products. Results. Sensitivity analysis is a useful tool for risk analysis of investment projects. The application of this method to an investment project in the mining industry should be carried out taking into account the industry specifics.

scholarly journals RISK MANAGEMENT IMPLEMENTATION PRACTICES IN RUSSIAN INDUSTRIAL COMPANIES: RESULTS OF AN EMPIRICAL STUDY

2020 ◽  
Vol 10 (4) ◽  
pp. 410-423
Author(s):  
M. O. Kuznetsova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Building Materials ◽  
Mining Industry ◽  
Management Systems ◽  
Industrial Companies ◽  
Research Areas ◽  
Industrial Organizations ◽  
Risk Management System ◽  
Pharmaceutical Industries

The article analyzes the practice of implementing risk management in Russian industrial companies. The study conducted a survey of 96 industrial companies in various industries in order to identify the features of implementing a risk management system in Russian industrial organizations. The main goals of implementing risk management systems in industrial companies, the features of organizational risk management structures, the amount of costs for maintaining risk management systems, risk assessment methods, the activities of industrial organizations that integrate risk management processes, and the level of automation of risk management systems were identified.The method of assessing the level of maturity of risk management is proposed: absent, managed, quantitatively managed, optimized and advanced levels.Using cluster analysis, groups of Russian industrial companies in various industries were identified by the level of process maturity of the risk management system. The most developed in the field of risk management systems are companies in the mining industry, mechanical engineering, as well as those engaged in the production of consumer goods. Companies with the least developed level of risk management include companies in the furniture, pulp and paper, cosmetics, and pharmaceutical industries, as well as those that produce building materials.On the basis of the survey identified the main barriers introducing a comprehensive system of risk management of industrial companies.The described research areas will help to increase the effectiveness of the risk management system, which will help to increase the strategic stability of the company.

Development and Implementation of Practice-oriented Process Model of Risk Management System at the Mining Enterprises

2021 ◽  
pp. 75-82
Author(s):  
V.A. Filimonov ◽  
◽  
L.N. Gorina ◽  
Keyword(s):  
Risk Management ◽  
Monitoring System ◽  
Management System ◽  
Process Model ◽  
Mining Industry ◽  
Process Approach ◽  
Risk Monitoring ◽  
Stage Of Development ◽  
Risk Management System ◽  
Iso 31000

The overview information is provided concerning the state of affairs in the mining industry in the field of industrial safety. It is shown that the multifactorial nature of the occupational risks (industrial, fire, environmental) forms a request for the development of risk monitoring system, as a result, a risk management system at hazardous facilities in accordance with the requirements of the supervisory authorities of the Russian Federation. The urgency and advisability of the application of process approach at the stage of development and implementation of the risk management system in the organizations and industrial enterprises of mining industry based on GOST R ISO 31000—2019 «Risk management. Principles and Guidelines» which establishes the basic approaches required for ensuring the effectiveness and efficiency of the risk monitoring system. The analysis is given related to the advantages and opportunities in the implementation of risk management in the organization. Process model of the risk management system in the mining organizations at the stage of development and implementation based on Deming PDCA cycle was built. Graphical map of the risk management system processes was developed and presented which complies with the requirements of GOST R ISO 31000—2019. The process of creating the risk management system using SADT (Structured Analysis and Design Technique) and IDEF0 methodology is shown in the article. The main context diagram of the process of creating the risk management system in IDEF0 notation was developed. The decomposition of the processes of the second and third levels is presented, all their functional links are described. Balance of the developed models is confirmed by the quantitative analysis of subprocess diagrams. It is demonstrated that the process approach used at designing the risk management system allows to structure the composition of processes, clearly define input and output parameters of the processes, process participants, resources, and ensure control and process adjustment.

scholarly journals Contract modeling of investment projects in the field of oil and gas construction

2021 ◽  
Vol 266 ◽  
pp. 06001
Author(s):  
A.S. Altemirova ◽  
I.V. Burenina
Keyword(s):  
Risk Management ◽  
Management System ◽  
Construction Projects ◽  
Oil And Gas ◽  
Optimal Contract ◽  
Preliminary Assessment ◽  
Investment Projects ◽  
Risk Management System

The purpose of this article is to select and justify the optimal contract model for one of the largest investment and construction projects of PJSC based on a preliminary assessment of the project under several alternative contracts. To achieve this goal, the following results were obtained: first, a classification of contracts for investment and construction projects (ICP) was developed, adapted to the specifics of the oil and gas business, second, the process steps for planning the contract model of oil and gas construction projects were formed, and third, a conclusion was made about the feasibility of using a particular contract model in terms of the project economy, its timing, the quality of decisions at each stage, and the risk management system.

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