Risks fromto Ok Teddy project Definition of Risks

Risks from/to Ok Teddy project Definition of Risks probability that a substance or situation will produce harm under specified conditions a combination of two factors: the probability of occurance of event, the consequences of event Basis for assessment are Environmental Risks: ‘the risk of damage to people’s health or to natural systems resulting from environmental degradation’ and thus also ‘the financial harm to a firm arising from it’s environmental behaviour’ Interconnectedness of risks (relationship between risks on nature, on humans and on business)

Primary risk Nature Impacts more higher than expected Main impact: direct disposal of tailings in to the river. changes in river flow water pollution rainforest degradation - habitat lost and degradation lost of animals and plants species (fish, turtles, palms and water plants)

Damages on people - local and regional influence - human health - human lives - way of living - social changes - gender issues

Risk management strategies For the mining company 1. Reduce the probability of risk Conduct risks assessment Continuous monitoring and risks communication Combination with economic and social risks 2. Risks Reduction Regulation and policy Corporate social responsibility mechanism Good risk information to stakeholders 3. Transferring risks to other bodies For the government Avoid retaining risks Improve risks communication through media Make alternative financial options Integrate the social, envrionmental, and economic risks

Corporate social response "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large“ Companies need to answer to two aspects of their operations. 1. The quality of their management 2. The nature of and quantity of their impact on society Institutional responsibilities between governments and the private sector - Weak governance zones pose ethical dilemmas and present risks "Should we expect company to put environmental concerns ahead of the economic bottom line? ” “Is it a only matter of well implemented and enforced legislation by the governments? ”

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