General Legislation and Risk

Question 1

Distinguish between Statute and Common Law

Answer 1

Common law

• Arises from judges’ decisions in reference to a particular legal case
• Judge has sufficient status of authority
• Judge may rule on specific issues presented before them in a court of law
• Cited in civil cases involving, not limited to, negligence or property damage

Statute Law

• developed by politicians in parliament
• Law may be modified and re-written, come in the form of Acts and their supporting regulations
• Enforced when they are breached and often contain set penalties depending on the breach

Question 2

Explain the role of legislation in risk management terms

Answer 2

• Form of legislation that governs the protection of health and safety of employees, the environment and public health
• Legislation ensure employerse and employees are protected and made safe throughout their employment on a mine site, plant or other working sites
• Legislation covers Common and Statutory law, delves into State and Federal
• Legislation assigns roles to the department of Mines and Petroleum, act as regulators
• Gov imposes rules, regs and laws as a control method in order to minimise risk to workplace.
• Miner needs to abide by the baselines set in order to remain legal
• Controls outline how to go about minimising risks and the minimum standards

Question 3

Identify 3 types of Organisational Behaviour

Answer 3

Organisational culture: the way organisational works within an entity may be influenced by key stakeholders

Pathological Culture

• Organisation safety and procedures are rarely followed
• These companies are not wanted in the mining industry
• Provide negative public image to whole industry
• Responsibility is pass on and not dealt with
• New ideas are actively discouraged
• Failure is punished and hidden

Bureaucratic Culture

• Have a ‘they may not find out’ attitude
• Responsibility is compartmentalised
• Failures are repaired
• New ideas often present problems

Generative Culture

• ideal organisational culture
• These companies improve and actively work on risk and safety approaches throughout the industry
• Actively seek a positive and health organisationl culture
• Failures lead to far reaching reforms and remediation
• New ideas are welcomed and encouraged

Question 4

risk communication equation (Risk = Hazard + Outrage)

Answer 4

• ## Risk professional see risk as probability x magnitude whereas for most people, risks means outrage

Question 5

Risk Management Process

Answer 5

• Establish the Context
  Specifications of the project > stakeholders, activity context, critical success factors
  Based on the critical success factors the risk analysis criteria is determined
• Risk Identification
  Identifying and listing events that might affect the project and their causes and determines what, how and why things may go wrong
• Risk Analysis
  Estimating the likelihood that things may go wrong and the potential consequences for the project
• Risk Evaluation
  Determining the risks that should be accorded the highest priority for risk treatment
• Risk treatment
  Establishing and implementing appropriate management responses for significant and high risks
• Monitoring and Review
  Continuous monitoring and periodic review of the risk profile and risk treatment implementation progress and aims to endure that the risk management process reacts to the dynamic nature of risks and is continued throughout the life of the activity
• Communication and Consult
  Communicate and consult with internal and external stakeholders as appropriate at each stage of the risk management process

Question 6

Statutory compliance management system

Answer 6

• Set of guidelines that an organisation is legally obligated to follow
• Compliance systems are integral in corporate governance and due dilligence

Objectives

• Prevent and where necessary, identify and respong to, breach of law, regulation, codes or organisational standards relevant tot the organisations’ operation
• Promote a positive culture of compliance within the organisation
• Assist the organisation in becoming a ‘good corporate citizen’

Question 7

3 Elements of Statutory compliance management

Answer 7

Structural elements

• Commitment
• Compliance policy
• Management responsibility
• Resources
• Continuous improvement philosophy

Operational elements

• identification of compliance requirements
• operating procedures
• Implementation
• compliance handling system
• Record keeping

Maintenance Elements

• Education and training
• Visibility and communication
• Monitoring and assessment
• review