MiningSEE: Risk managment standards

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The implementation of permanent risk control and continuous risk maintenance at an acceptable level of tolerance is necessary

Given the absence of zero risk in all business areas, quality identification, analysis and risks assessment, should be carried out, and afterwards, the measures for risk reduction or bringing it down to a state of acceptable risk level to be determined. International standards for risk management, whose implementation is possible in almost all business areas, create the basis of expert paper “Risk Management Standards”, written by Marijana Korakianiti from Belgrade Company “Tekon sistemi”. The paper was presented at the “OMC 2014”, XI International Conference on surface mining, which was held on Zlatibor in October 2014.
In a turbulent environment, it is crucial that business organizations, including mining, to understand exposure to risks and their impact on achieving the objectives. Proactive approach and risk management made the mining company to take control over unexpected events that may cause financial losses, interruption of normal operations, thus jeopardizing the reputation and/or competitiveness.
Risk behavior is usually variable over time, and should be permanently controlled and continuously maintained at an acceptable level of tolerance, which is also the business process. Unlike other processes, risk management may be unique for all types of organization, regardless the activity and size. Therefore, the risk management process, there are various international standards that are used in a growing number of organizations. Standards need not be mandatory certification, but simply to represent the guidelines for the establishment and improvement of the risk management process. Although not binding, they are most commonly used because there are usually contained the best practice.

With overview of international standards, the author notes that standards for risk management codes ISO/IEC are brought by international organization for standardization. ISO/IEC standards are usually generated as a set of best practices from various national standards. All are based on same or similar principles with more or less detail level. Effective and efficient risk management involves the application of principles: risk management creates value; risk management is an integral part of organizational processes; risk management is part of decision-making; risk management explicitly addresses uncertainties; risk management is systematic, structured and timely; risk management is based on the best available information; risk management is tailored to the organization; risk management takes into account the human factor, and; risk management is transparent and open to suggestions; risk management is dynamic, iterative and responsive to changes; risk management enables continuous enhancement and improvement of the organization.
The basis consists of elimination measures of causes of and/or minimize the effects of risk events and security measures of the minimum losses and eliminating the consequences in case of risk events. The success is possible if you are familiar with phenomena that are managed, and management methods. Developed societies and economies standardized definition, terminology and understanding of risks.
Standards are tools for risks identification and evaluation, the impact of various measures on risks and risk management. They contain guidelines and methodologies for the practical use that are based on best practices. The framework defined by standards helps organizations to effectively manage their risks at different levels and in specific organizations contexts.