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Fostering a positive risk culture from the mine to the boardroom

Building a positive risk culture in mining. Bridging the gap from the mine to the boardroom.

Mining safety and risk culture

What is risk culture?

Organisational risk culture refers to the shared values, beliefs, and behaviours within an organisation. These elements influence how risks are identified, assessed, managed, and communicated. It encompasses the attitudes of employees and management toward risk-taking and risk management practices. Additionally, it reflects the organisation’s overall approach to uncertainty and potential threats.

A strong risk culture is essential for the occupational safety and well-being of mining employees and the long-term viability of a mining organisation. By fostering an environment where risk awareness and management are top priorities, organisations can better protect workers and others. This approach also enhances operational resilience.

A robust risk culture encourages open communication. It empowers employees at all levels to report unsafe conditions and near misses without fear of reprisal. Establishing and maintaining this culture requires a collective and collaborative effort. It necessitates a commitment to ongoing improvement from entry-level workers to executives.

Challenges to developing a strong risk culture in mining operations

Mining organisations face three key challenges in establishing a strong, consistent risk culture across their operations.

Mining operations, including underground mines and surface mining, involve significant hazards to colleagues and surrounding communities. These potential hazards include:

  • Heavy machinery. Operating large, complex mining equipment poses accident and injury risks.
  • Geological instability. Ground collapses, slope failure, and other geological risks can threaten mining safety.
  • Exposure to harmful substances. Prolonged contact with chemicals or coal dust can result in occupational diseases and health complications.

The constant presence of these risks can foster complacency. This may cause employees to become desensitised to dangers.

The mining workforce often includes individuals from various:

  • backgrounds;
  • cultures;
  • and levels of experience.

This diversity can lead to differing perceptions of risk. It can also result in varying levels of commitment to risk management practices.

Effective communication is crucial for a strong risk culture. In mining operations, teams may work in remote locations or shifts. This makes it important that risk messages are consistently communicated and understood.

Benefits of a strong risk culture in the mining industry

A positive risk culture within a mining organisation can offer several benefits, including:

Colleagues should feel safe raising concerns in the workplace. This includes situations where their concerns challenge managers or established ways of working. Speaking up may help prevent accidents and mitigate risks. This fosters a sense of ownership among employees. As a result, it leads to a more engaged workforce that is committed to maintaining a safe working environment.

Culture drives continuous improvement. A culture that encourages a growth mindset promotes learning and experimentation. Employees feel safe taking risks, sharing ideas, and learning from failures. This is essential for ongoing improvement in safety practices.

A positive organisational culture can significantly improve employee retention. By investing in employee well-being and fostering a sense of belonging, mining companies can build a loyal workforce. This workforce is more resilient to external challenges and changes in the industry. This can also strengthen relationships with the local community.

Developing a risk culture framework for worker safety

A mining organisation’s broader approach to risk management may encompass the following elements:

  • Robust governance and oversight
  • Effective risk assessment and identification
  • Continuous monitoring

However, an effective risk management strategy often hinges on the underlying risk culture. A strong risk culture empowers workers at all levels to identify, communicate, and address risks proactively.

The mining industry faces unique challenges in cultivating a risk culture due to its:

  • health and safety risks;
  • diverse workforce;
  • and remote operations.

These factors can complicate the implementation of standardised risk management practices. Therefore, organisations should prioritise developing a repeatable annual or biannual method for assessing and enhancing their risk culture.

Building on recognised standards in risk culture, Marsh has developed the following framework to help organisations assess and strengthen their risk culture.

Risk culture framework

Conducting a fair risk assessment of organisational culture

Key drivers of risk culture may include:

  • Senior management commitment
  • Organisational policies and procedures
  • Current state of equipment and resources
  • Staff communications
  • Reporting and feedback
  • Social and economic factors
  • Productivity versus safety measures

Many organisations use staff surveys to assess their organisational culture. However, engagement can be limited, and some staff may lack access to a computer or smartphone to answer the survey. Facilitating focus groups can offer greater perspective and real-time collaboration.

Staff focus groups can allow colleagues to step away from daily tasks. This provides an opportunity to discuss and identify the current risk culture. It also highlights opportunities for improvement. General best practices for focus groups include:

  1. Limit attendees to 10 employees of similar rank or seniority.
  2. Keep the duration of the workshop to 90 minutes or less.
  3. Use a third-party facilitator to help maintain confidentiality and trust in the process. 
  4. Establish confidentiality among participants, at the beginning of the conversation.
  5. Focus on positive aspects and identify successful practices that can be transferred to other areas of the organisation.
  6. Anonymise focus group results and present them to senior management for discussion and action.

Mining industry leaders should consider what actions are needed and the resources required. They must also identify who is responsible for delivering these actions. Additionally, they should pay attention to necessary training, stakeholder involvement, and timelines. To ensure commitment at every level, an organisation’s action plan should include an appropriate communications campaign.

The relationship between risk management and insurance

The relationship between a positive risk culture and insurance is important. A weak risk culture can potentially lead to a drift away from established procedures, heightening the potential for:

  • accidents;
  • malpractice;
  • and asset damage.

Underwriters generally pay close attention to their clients’ risk culture. They recognise that a robust risk culture often reflects proactive risk management practices. Mining companies that foster a strong risk culture are likely to adhere to established protocols. They also prioritise safety measures. This may result in more favorable insurance terms.

By actively addressing and improving their risk culture, organisations can mitigate insurable risks. This can also enhance their reputation with insurers. This proactive approach may help to reduce the likelihood of claims. It can also position the organisation as a responsible entity in the eyes of underwriters. This could potentially lead to better insurance outcomes.

How Marsh can help enhance your mining health and safety measures

Marsh’s international advisory team provides mining companies with a comprehensive review of risk culture. Our industry expertise enables us to assist you in improving your organisation’s risk culture. We also ensure that it meets best practices and regulatory requirements.

We support mining companies in cultivating a proactive risk management environment by conducting thorough evaluations. Additionally, we provide tailored recommendations to enhance their practices.

Our collaborative approach helps you identify potential vulnerabilities and promote a culture of continuous improvement. This enables you to navigate challenges effectively and seize opportunities for growth in mining health and worker safety.

If you have any questions regarding risk culture and your broader risk management approach, please contact:

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Hugh Waggett

UK Enterprise Risk Practice Leader (SVP)

  • United Kingdom

Christopher Partridge

Christopher Partridge

Global Mining Leader

  • United Kingdom