An Integrated Risk Management Program for a Coal Producer in New Zealand

CIM Edmonton 2004
Abstract After developing a 20-year Long Term Plan, Solid Energy New Zealand (SENZ), the biggest coal producer in New Zealand, saw Integrated Risk Management (IRM) as a key to the delivery of the Long Term Plan, thereby maximizing shareholder value. With an annual production of 3.8 million tonnes in difficult conditions, of which 2.0 million tonnes is exported, SENZ faces many risks in diverse fields including operational, strategic, financial, economic and market areas.

The IRM program ensures the explicit identification and evaluation of all risks faced by the organization and an analysis of the effectiveness of risk controls. This allows the efficient deployment of resources in areas where they will have the most return on the risk management effort. IRM is used for both ongoing operations and also for major decision-making.

Management systems are used to ensure that the organization is continually assessing its risks and controlling them effectively. The program is not another management system on top of existing systems, but rather a tool that links the existing systems effectively according to need. Underpinned by a regularly-updated risk register, the IRM program includes a management structure with clear responsibilities, risk management standards, risk reports and action plans.
Keywords: Risk management, Strategy, Coal Mining, Planning, Management systems, New Zealand, Operations
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