Evolution Mining: Risk Analysis Report Incorporating Risk Management, Assessment And Mitigation Plans

Discussion

Risk management is generally termed as the process associated with the identification, analysis and the acceptance or the maintenance of any kind of uncertainty related to the taking of certain decisions. In this process the risks are prioritized which is followed by the process of coordination and economic application of the resources for the purpose of minimizing the impacts along with monitoring and controlling the probability of the impact of certain unfortunate events. Additionally maximization of the realization of the opportunities s also done by this process (Donovan et al., 2017).

There is a probability that risk might be occurring from various sources this might be including the uncertainty in the financial markets, threats coming due to the failure of the project, legal liabilities, credit related risks, accidents and many more. In this report we would be discussing about a case study based risk analysis of the selected organization known as Evolution Mining.

SWOT ANALYSIS

Strength: Evolution mining, an Australian gold company has been acting as one of the biggest mining companies that is present in Australia. This is due to the fact that the mining organization has 5 mines in the Australia, namely in Cowal in New South Wales; Mt Carlton, Mt Rawdon, and Cracow, in Queensland; and Mungari in Western Australia. In addition Evolution holds an economic interest in Ernest Henry, in Queensland. These mines are solely owned by the owners of Evolution Mining (Kowalska, 2014). These mines are capable enough of generating huge revenue and the amount of expected revenue is very high. This leads to the fact that the future of the Mining industry is in safe hands, this is the main reason that the mining processing I maintained with proper efficiency. Consistency of Evolution Mining is very high, leading to the fact that the data processing is maintained with very high proficiency. Another major strength of this company is that the company is in the growing stage and the data management that is very efficient and the functioning of the project is in a positive node (Bakker & Shepherd, 2017).

Weakness: The only weakness that is present in the organization is the employee handling. This leads to the fact that the environment present in the office premises is not very good. This leads to the fact that the production rate suffers and this suffering of the production rate directly hampers the turn over if the organization. This is the reason that the data management of the project is not taken into consideration. This has been acting as a drawback in expansion of the framework and infrastructure of the project.  Due to the lack of efficiency in man handling, conflicts are raised in between the organization among the internal stakeholders of the company. In case of having an internal conflicts among the stakeholders of the mining company, the external stakeholders are the ones that suffer the most (Bakker & Shepherd, 2017). This is due to the fact that the viability and robustness of the data that are generated among the data centre of the organization is very low and the external stakeholders when they get the data, are mostly incorrect in nature.

SWOT Analysis

Opportunities: Opportunity of succeeding in this field for mining for Evolution mining is very high as they have their plans ready and the management plans are properly planned as they estimate a profit of around production of the mining industry. This is due to the fact that the total amount of gold present in the future prospect is nearly 100%, this proves that the productivity of the mines that are present in the course of manufacturing is very high, leading to the fact that the amount of revenue that is to be earned will be very high in recent days (Dawson, Searle, & Paterson, 2014). The future of the mining organization is very as it estimates a production of 30% of copper present in the processing. Tis proves the fact that the emergence and the expansion of the business organization is very high.

Threat: major threat that is present in the course of the completion of the project is that the production is maintained with the help of the efficient function of the stakeholders of the organization who are internally connected with the organization (Rainey et al., 2015). This is due to the fact that the manufacturing process is affected in a negative way. The fact that the internal stakeholders do not share a very good bonds among themselves the processing of mining company loses its efficiency and the only problem that is present in the functioning of the manufacturing process is that the internal stakeholders are not very well connected with each other, leading to the fact that the functioning of the mining organization suffers a lot and the efficiency of the organization decreases (Pal & Khanda, 2015).

Stakeholder analysis:

Stakeholder analysis is initially diversified in 2 cases, they are as follows: –
Internal stakeholders: this leads

•    External Stakeholders: External stakeholders are the stakeholders that are indirectly related to the manufacturing and production of the mining elements. This leads to the fact that clients who are related to the mining industry and the government of Australia acts as the external stakeholders of the mining industry. In this case government acts as the sole external stakeholder as the buying and selling of products that are manufactured are bought by the government itself, leading to the fact that the entire dealings are performed with the help of the government and there is no scope for external clients for accessing the products that are being manufactured in the mines (Eckles, Hoyt & Miller, 2014).
•    Internal stakeholders: Internal stakeholders of the mining organization includes the presence of the stakeholders namely the workers in the mines, internals stake holders also includes the performing the processing of the project manager who has been performing the duties for completing the progression of the project.

PESTLE:

P (Political analysis): In case of implementing the Political analysis of the data management of the mining industry, government itself acts as the external stakeholders of the mining industry. Hence it is very obvious that relation in between the evolution mining company and the government has to be good for completion of the deals in between the company and the government (Sivakumar, Kannan, & Murugesan, 2015).

E (Economic): Economic state of Evolution mining is in a very efficient due to the fact that they follow future planned technological scheme as they have sold more than 30% of copper and 100% of gold for future use.

S (Social): Mining is completely a society based job, this is due to the fact that the products that are manufactured are directly sold to the government, leading to the fact that the earning that is made by the government is used for the betterment of the society ad anther main advantage is that this sector jobs for the local people residing there.
T (Technological): Evolution Mining is technologically updated, leading to the fact that the entire processing is performed with high efficiency (Sivakumar, Kannan, & Murugesan, 2015).

E (Environmental): Evolution mining is directly related with the environmental process as they are axing the environment itself. Despite the fact that the residents who stay nearby gets affected positively but from environment perspective it acts as a negative source (Mzembe & Meaton, 2014).

Stakeholder Analysis

L (Legal): the process that is performed by the Evolution Mining, is completely legal as the government of Australia acts as there only stakeholder.

Risk Analysis:

Risk Identification:

This is the process which is associated with the determination of the risks that might be affecting the organization. Once the risks are identified they are documented so as to distinguish the risk according to their character. The identification of the risk is possible by means of understanding and reviewing of the plans, brainstorming of the experts along with interviewing them. In this process the risks previously faced are also looked after by examining the previous risks that have been experienced (Unger et al., 2015).

Methodology used for risk identification:

Brain storming and interviewing: 

Brainstorming and interviewing was performed with the engineers, the employees and the managers to identify the risks. Flow chart is one of the useful tool that is used for the purpose of identifying the risks that are faced by the Organization. By taking with the employees of the organization some of the major problems were identified and this risks can be divided in two major categories that includes the internal risks and the external risks (Bichueti et al., 2018). This two types of risks are further classified into different sub-categories which would be discussed the later portions of the report. The risks that were identified are generally dependent upon the characteristics of the organization and the particular industry to which it belongs.

Identified risks:

The two major categories of risk includes the internal risks and the external risks. This risks are provided below:

Internal risks:

1. Incorrect calculation of the resources
2. Financial difficulties
3. Incorrect calculation of the financial resource allocation
4. Lack of fund for environmental recovery
5. Absence of sufficient employee safety substances
6. Technical problems
7. Shortage of skilled employees and insufficient skills of the managers
8. Undesired accidents during the various operations of the organization
9. Lack of proper management
10. The workers are irresponsible
11. Shortage in the number of employees and strikes amongst the employees
12. Poor rate of communication amongst the various sections of the organization
13. Lack of adequate machinery

External problems:

1. Lack of shortage of the fuels in the country
2. Transportation delays
3. Uncertain environmental damages
4. Legal issues
5. Pressure from the government due to various reasons
6. Changes in the laws and regulations of the country
7. Price fluctuations of the resources needed to run the business
8. Fluctuations in the rate of foreign exchange
9. Poor infrastructure
10. Shortage of the experts, shortage of local manpower,
11. Increased rate of competition and political instability
12. Fall I demands of the products

Risk evaluation:

In order to evaluate the risk properly there must exists the need of considering the probability of risk occurrence along with considering the impact of the risk on the objectives of the business. This would be done by plotting of the risk probability-impact matrix (Gürtunca, 2018). The risks that has been identified are positioned in the probability and risk matrix. The risk matrix would be consisting of two axis that is x and y where the x-axis would be associated with representing the probability value and the y-axis would be representing the value of the impact. In the matrix the scale is considered to be from 1 to 10. In order to have a clear view the figure provided below would be showing the value from 3 to 7 in the x-axis and 3 to 8 in the y-axis. Once the plotting is done the values would be calculated. For doing this it is assumed that the average probability as well as the impact of the risk identified is more than 5. Which is followed by considering the risk to significant one that requires high attention (Louche, & Idowu, 2017). The matrix that is provided below is associated with showing the fact that the risk which lies inside the circle of priority number 1 are having the highest probability as well as impact. Whereas the risks that lies in the priority circle 2 are having highest probability but the impact that they are having is medium. The priority circle 3 is consisting of the risk with medium probability and high impact. Lastly the priority circle 4 is having medium probability and medium impact.

PESTLE Analysis

Risk Mitigation:

This is the process which are to be adopted by the organization so as to respond to the different kind of risks and the threats that are faced by the organization. This process generally comes after the risk evaluation process and is mainly adopted for the purpose of mitigating the significant risks which are having the higher priority.

A survey is to be designed so as to identify weather the employees in the organization are capable of performing the risk mitigation plan (Wu, Chen & Olson, 2014). The results would be provided in the form of chart. After this the risk management tool would be used by the organization so as to evaluate the risks and this would be followed by the evaluation of the risk management tools that are to be adopted. The two main tools that are to be adopted includes the case study based approach and the approach.

Risk learning:

Identification and assessing of the potential risks is considered to be the fundamental and one of the major step of potential risk management. There exists a certain level of risk in each and every organization but still most of the organizations is seen to be not prepared or ill prepared while the potential risks are being identified or are adequately being addressed. It is seen that the managers are trying a lot to identify all the risks associated with the project as this is a very time consuming process and counterproductive (Ranängen & Zobel, 2014). Attempts that have been made in order to consider every risk are doomed toward failure. The important trick for this is to identify the risks which are most critical which would be followed by controlling of the risks. So for the organization it is very essential to determine the risks which are significant.

The identification and listing of the risks is totally dependent upon various factors which includes the past experiences, personal tendencies and possessions of the information (Ranängen & Zobel, 2014). The preparation of an information database which would be consisting of exclusive information of the local risk characteristics can act as an effective support for the other managers of the organization.

Project risk information database

Generally it is seen that the organizations are associated with performing risk management activities and retains the details which are learnt from the previous experiences. This might be consisting of things which are learnt from various projects that are needed so as to include the in the new operations of the organization. But despite of this whenever it is found that the previous projects are having similar characteristics in time, effort and money consuming then they can be avoided in case if there exists a process and mechanism which can be used for sharing the project learning amongst the other project managers (Owen & Kemp, 2014). Besides this an information database solution would be there for the risk management process in order to share the information amongst the various peoples associated with the project.

Risk Analysis

Creation of Project Risk Information database:

The literature along with other case studies and analysis of the surveys acts as a very important information for the creation of the risk database. It is seen that the implementation of the risk management takes a long time along with gathering of the project learning and risk information would also be taking a lot of time. So along with the recently implemented project learning the previous studies would also be associated with contributing a lot in getting the information related to the risks and would also be providing information required to manage the risks (Carpentier, Gamache & Dimitrakopoulos, 2016). The figure provided below shows the project risk information database that is to be adopted by the organization:

Whenever the inputs are being provided the specialist of the panel that is to be appointed by the organization would be associated with reviewing the risk information that are submitted along with reviewing the appropriateness of the information.

Using the Risk Information database:

Once the operations are going to be conducted then the manager would be associated with going through the risk database this would be helping in saving time as the information present in the database would be acting a huge amount of input that is needed for the purpose of categorizing. The information that are present in the database would be categorized according the type of project. This would be further categorized in accordance to the surrounding where the project is going to be implemented this would be helping in looking into the local risks which would be having unique characteristics (Wu, Olson & Dolgui, 2015). In a similar way the literature as well as the project learnings of the required project type and the location where the previous projects were implemented would also be revealed. The risk database must contain a good guideline regarding the description of the risk and how this risks were managed. It is very essential to maintain the database properly by the organization or the database creator. In addition to this the information can also be used for the purpose of performing various studies which would be including the simulation analysis on the probability of risk occurrence as well as the impact to the project failure on the place where the project is to be implemented (Burritt & Christ, 2018).

The database would be helping the project managers in saving their effort, time as well as money. Besides this the database would also be helping in the identification of the possible risks along with understanding the risks at the early stage. Once the information is gathered they can be exploited for the risk management researches which would be initially resulting in the generation of more productive ideas and techniques.

References:

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