Chapter 29: At Akawini Copper The Transforming Risk Manageme

Chapter 29. At Akawini Copper the Transforming Risk Management

The case of Akawini Copper’s transition from traditional risk management to an enterprise risk management (ERM) framework exemplifies a significant strategic shift in organizational risk handling. Prior to acquisition by United Minerals, Akawini Copper utilized a more basic and somewhat fragmented approach to risk assessment, primarily relying on formal risk assessments that were conducted annually, with limited integration into project management processes. The safety and business risks were evaluated using risk matrices that generated hazard ratings but did not necessarily consider the full spectrum of potential impacts or involve periodical reviews of critical controls. Consequently, the company lacked a coherent process for learning from past failures or successes, and critical controls were not systematically assigned for ongoing monitoring.

Following the acquisition, United Minerals introduced the ISO 31000 framework for enterprise risk management, which necessitated a more structured, strategic, and comprehensive approach to managing risks. This transition represents a move toward a proactive risk culture, emphasizing continuous monitoring, integration of risk management into strategic decision-making, and the development of a risk-aware organizational mindset. The implementation process encountered resistance, notably from management levels that viewed ERM as complex or disruptive, echoing common hurdles in ERM integration across various industries (Leisser et al., 2018).

Transforming risk management at Akawini involved addressing several critical challenges: aligning existing safety protocols with ERM requirements, establishing a clear governance structure, and fostering a risk-aware culture among employees at all levels. The new ERM process emphasized identifying, assessing, and treating risks systematically across all departments. This included formal risk identification workshops, development of risk appetite statements, and integration of risk metrics into performance management systems (Purdy, 2018). The transformation aimed to turn risk management from a compliance-driven activity into a strategic tool that enhances decision-making and organizational resilience.

Effective change management required clear communication of ERM benefits to all stakeholders, demonstrating how a holistic approach could mitigate potential losses, protect assets, and support business objectives. Training programs and ongoing support facilitated employee engagement, while leadership commitment reinforced the importance of embedding ERM into everyday operations. Despite initial resistance, the phased implementation, incorporating feedback loops and iterative improvements, helped in embedding ERM into the corporate culture (Choi et al., 2016).

Furthermore, adopting ISO 31000 enabled Akawini to develop a risk management framework that was adaptable to the company’s specific context, yet aligned with international standards. This not only improved risk oversight but also enhanced stakeholder confidence, including investors and regulators. The transformation process demonstrated that successful ERM implementation requires a combination of strong leadership, clear policies, and active participation from staff at all levels. Continuous monitoring and periodic reviews ensure that the ERM framework remains relevant and responsive to emerging risks, ultimately strengthening Akawini Copper’s strategic posture in the competitive mining industry.

References

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