UMACO has a clear view of variables to which they may be exposed, whether internal or external, retrospective or forward-looking. Their assessment is anchored in the defined risk appetite and tolerance of the Company to provide the basis for determining risk responses.
A robust risk assessment process is applied consistently throughout the Company empowering management to better identify, evaluate, and exploit the right risks for the business, while maintaining the appropriate controls to ensure effective and efficient operations and regulatory compliance. The linkage of risk assessment is a primary driver between shareholder values and key objectives as a robust risk assessment process forms the foundation of an effective risk management programme conducted by the Company.
Specific business objectives are anchored in key value drivers within the Company. These objectives provide the basis for measuring the impact and probability of risk ratings. Governance over the risk assessment process captures leading indicators and enhances the ability of the Company to anticipate possible risks before they materialise. This capability helps steer the Company toward measurable, lasting success in today’s ever-changing business environment, as by its nature, mining is a speculative endeavour which understandably brings risks that require mitigation.
Risk elements assessed are general for the exploration and mining industry, and specific to the existing and proposed venture of the Company, as estimation of risk is not exhaustive given the nature of the extremities that must often be faced in the mining business, and as exploration and mining of minerals carries a certain degree of inherent risk.