Risk Consulting for the Mining Industry
With over 70 years’ experience working with clients in the mining industry, Marsh Risk Consulting (MRC) provides advice, analytics, tools, research, and solutions for a wide range of risk issues. We can help you better understand your risk profile and find appropriate protection.
MRC’s dedicated professionals combine in-depth knowledge with leading industry thinking and advice to meet mining companies’ day-to-day needs and keep them ahead of their risk exposures.
We offer numerous services to help mining companies manage risk exposures, including:
Strategic risk management. The global nature of mining can make you susceptible to risks including natural catastrophe, terrorism, operational stress, joint venture failure, political risks, and counterparty failure. We use a structured methodology to identify, define, and assess risks to your business strategy, financial performance, and operational effectiveness.
Enterprise Risk Management (ERM). The remote and complex nature of some mining operations can mean higher operational costs, including those for energy, labor and transportation, safety, security, and environmental exposures. Marsh’s ERM framework can help you align strategy, processes, people, technology, and knowledge, so you can evaluate and manage the daily uncertainties your company faces.
Supply chain management. We can help your company understand potentially critical failure points along the supply chain, such as pumps, piping, lubes, tires, and lead time for essential plant and machinery. We’ll help you allocate appropriate risk management strategies to achieve more adaptive and resilient supply chains, by:
- Helping you understand key risk exposures, not only in your own supply chains, but also that of your suppliers.
- Providing options and alternatives through a risk management plan that reduces potential exposure to your business (including pricing and modeling).
- Helping you execute a risk strategy in collaboration with key suppliers.
- Providing risk transfer options for critical risk exposures in the supply chain.
Risk modeling helps mining companies achieve the proper balance between risk retention and risk transfer. A risk tolerance evaluation gives you a guide to the overall amount of risk you can absorb during a year, by analyzing the available “headroom” around key performance indicators. Our risk modeling can assess the likelihood of loss for key classes of insurance.
Business interruption insurance
Setting up an effective business interruption (BI) insurance program requires an in-depth risk assessment of operational and financial dimensions of your business. The outcome of this assessment determines the breadth and basis of cover, the BI sum insured, indemnity periods, and essential cover extensions.
Marsh’s Business Interruption Insurance Reviews utilize our in-house Forensic Accounting and Claims Services (FACS) team to examine your company’s existing BI insurance program and ensure that key exposures have been carefully examined.
Mining companies often operate in extreme conditions. New and proven deposits are increasingly discovered in areas that require significant investment and sophisticated skill and technology. In such challenging environments, any issue that isn’t managed efficiently can threaten the business. Marsh’s crisis management advice can help minimize your risks, reduce costs, and create an opportunity to enhance brand value, human capital, and public trust.
Our FACS valuation group can verify and value all tangible assets on site. We use an electronic data capture and asset tagging system that includes handheld computers with integrated barcode scanners. When combined with our proprietary asset register software, we can provide detailed, unit-level verification and valuation of your assets to support an assets/revenue audit.
Business Continuity Management (BCM)
BCM consists of identifying threats to your organization and developing Business Continuity Plans (BCPs) to respond, from initial events through full recovery. These plans are developed by:
- Prioritizing business operations.
- Identifying tolerable downtimes.
- Assessing financial and non-financial impacts to the business.
- Outlining recovery strategies in the event of an interruption.
Marsh’s consultants can review and audit your existing plans to identify gaps and areas for improvement. We’ll provide plan scenario testing to ensure that clients’ BCM arrangements remain fit for purpose. Our BCM experts can also visit key supplier locations, assess their existing continuity preparations, and identify your supply chain risks.