Group risks and opportunities
The overriding purpose of our Enterprise Risk Management (ERM) process is to assist Gold Fields to achieve its strategic and operational objectives and help the company to become as resilient as possible in the prevailing global business environment. The ERM process also supports our efforts to achieve the highest levels of corporate governance, as well as full compliance with the risk management requirements of South Africa’s King III Code.
The ERM process in Gold Fields is mature and fully aligned with the ISO 31 000 international risk management guideline. Strategic and operational risk management processes are integrated with the business and managed on a day-to-day basis by our executive and line management teams.
For further details on this section please see latest Integrated Annual Report 2015.
Risk Management Review Process and Reporting Structure
Strategic and operational risk management processes are integrated from the foundation of the process described below, through all the various levels of risk management to the top, where the Risk Committee and Board are informed of all the significant risks facing Gold Fields. This includes a clear understanding of the external risk environment and the potential impacts or opportunities it may have on the company. The global risk landscape and macro risk trends are analysed and integrated in our executive management strategic review process.
Group and Regional Heat Maps and Mitigating Strategies
Risk appetite and tolerance
The Gold Fields strategy, as encapsulated by our DNA, is fully aligned with our risk appetite.
Gold Fields’ risk appetite is defined as the amount of risk the Company is willing to take in pursuit of our strategic objectives and the amount of risk we are capable of taking considering our financial and operational capabilities.
Our risk management motto of “making it less risky to take risk” implies that we have precise and effective risk mitigating strategies to continually reduce risk to an acceptable level. We believe we are inherently more risk averse than many of our peers.
Risk tolerance levels are set in each of our major risk areas aligned to the Gold Fields DNA, such as safety and health, production, growth and productivity, environment, human resources as well as our legal and social licences to operate.
Risk appetite and tolerance levels are reviewed by management and adjusted annually as part of our risk management plan, after which they are reviewed and approved by the Board. Management’s mandate is to take risks only if they fall within these tolerance levels.